Industry Information

Currently, most companies mainly use auxiliary employment as a form of auxiliary labor, through human resource dispatch and outsourcing, to meet the competitive edge of the business world. Compared to traditional employment, human resource dispatch andHuman resource outsourcingFlexible labor and efficient manual scheduling are recognized by the mall.

For example, manufacturing has a large recruitment scale, often requiring immediate project orders and hiring tens of thousands within days. It is quite difficult for companies to allocate labor independently, but using dispatch or outsourcing may meet the needs of tens of thousands of workers in just a few days.

Our theme in this article is "The Differences in the Labor Relationship Between Human Resource Dispatch and Human Resource Outsourcing." Below, we will specifically introduce the connection between dispatch/outsourcing and labor providers and contracting companies.

1. The three connections among human resources dispatch are as follows 

Human resource dispatch refers to a labor contract signed between a dispatch company and a dispatched employee. The labor relationship exists between the dispatch company and the dispatched laborer, but the actual payment of labor strength occurs between the dispatched employee and the enterprise performing the practice.

1. The connection between the human resources dispatch company and the dispatched laborer. Under the form of human resource dispatch, workers sign labor contracts with the human resources dispatch company, establishing labor ties between both parties. According to Article 58 of the Labor Contract Law, "A human resources dispatch agency is an employer as defined in this law and must fulfill its responsibilities to the employer." This clause clarifies that employers of human resource dispatch agencies must bear responsibilities such as compensation and social insurance for those who have labored for their work. However, this labor connection differs from normal labor contacts; human resource dispatch agencies do not directly employ workers but instead dispatch them to practical employment enterprises to carry out practical operations.

2. The connection between human resources dispatch companies and practical employment enterprises. In human resource dispatch, the dispatch company signs a human resources dispatch agreement with the employing enterprise, specifying the rights and responsibilities of both parties. In the agreement, the dispatch company's main responsibility is to provide workers who meet the employer's requirements to the employer. The employer's responsibility is mainly to pay service fees to the dispatch company, and the dispatch company cooperates with the employer to fulfill the relevant responsibilities to the employee.

3. Practice the connection between employing enterprises and laborers. In human resource dispatch, workers perform practical tasks at the employing enterprise and undertake the handling of the employing enterprise. Based on the human resources dispatch agreement, the practical employment unit has the right to manage and utilize the laborer. The worker provides labor to the practical employing enterprise, but there is no direct labor relationship between the two sides.

2. The tripartite connections among human resources outsourcing are as follows 

Human resource outsourcing refers to enterprises outsourcing non-central, auxiliary, highly seasonal, and unscheduled production and business processes based on their own production practices, with the HR outsourcing company serving as the organizing personnel to produce according to plans and targets.

In the legal contact of human resources outsourcing, there are three parties: the contracting unit, the outsourcing unit (contracting unit), and the laborer.

1. Connection between the outsourcing company and the laborer: The outsourcing company and the worker have direct employment contact, with employment or labor ties between the two sides. The outsourcing company directly handles employee attendance, performance evaluation, and other related tasks.

2. Contact between the outsourcing company and the contracting company: The contracting party and the outsourcing company are contractually connected, completing the work according to the client's requirements, delivering the results, and paying the outsourcing company's fees as agreed. The client will no longer be involved in social insurance, welfare, overtime pay, or other issues for outsourced personnel; all these will be handled directly by the human resources outsourcing company according to practical employment practices.

3. The connection between the contracting unit and the laborer. From a legal perspective, there is no connection between the two. The laborer only needs to provide the labor results required by the contracting unit. The contracting unit does not directly handle the worker and does not bear legal responsibility for the laborer.

Under human resource outsourcing, employees do not need to worry about low income during the off-season, and job changes may bring risks related to professional skill competence and integration into corporate culture. For companies experiencing significant business peaks and troughs, flexible hiring is also possible, and the pain point of labor cost sensitivity during off-season for business owners is also addressed.