Interim Provisions on Labor Dispatch

Employment Ratio

Corporate entities are prohibited from having more than ten percent of their total staff composed of workers provided by dispatch agencies. Under the interim provisions on labor dispatch this limit applies to the entire enterprise rather than individual departments or branches. If a company exceeds this threshold, it must develop a plan to reduce the number of dispatched workers or convert them into direct hires.

Local labor bureaus monitor compliance with this ratio during annual inspections and through the review of social insurance records. This measure is intended to stabilize the labor market and promote higher levels of direct employment.

Position Nature

Dispatched workers can only be assigned to tasks that meet the criteria for being temporary, auxiliary or substitutable. According to the interim provisions on labor dispatch a temporary position is one that lasts for no more than six months. Auxiliary positions are those that provide support to the core business activities but are not central to the primary operations of the firm.

Substitutable positions are created when a permanent employee is away on leave or for study. Companies must consult with employee representatives or labor unions before designating a position as auxiliary.

Employer Liability

Legal responsibility for the welfare and safety of dispatched workers is shared between the dispatch agency and the host company. The interim provisions on labor dispatch require that dispatched workers receive equal pay for equal work compared to direct hires in similar roles. This principle of wage parity prevents the exploitation of agency workers and ensures a fair working environment.

The host company must also provide the necessary safety training and protective equipment to dispatched staff. If a workplace injury occurs, both the agency and the host firm can be held liable for compensation. This joint liability encourages companies to select reputable dispatch agencies that follow the law.

The regulation also clarifies the process for terminating a dispatch arrangement and the conditions under which a worker can be sent back to the agency. Dispatched workers have the right to join labor unions and participate in collective bargaining at the host enterprise. Management must keep detailed records of all dispatch contracts and provide them to labor authorities upon request.

These provisions are part of a broader effort to formalize the gig economy and improve social security coverage for all types of workers. Every enterprise using dispatched labor must adjust its human resources strategy to remain in compliance with these strict rules.