Industry Information

According to the "Interim Rules on Human Resource Dispatch," which officially came into effect on March 1, 2014, enterprises are given a two-year transition period to adjust the employment ratio for human resource dispatch. Since the transition period ended on February 29, 2016, some local governments have continuously carried out special inspections and rectifications on human resource dispatch. For enterprises that originally employed human resources through dispatch, besides strictly enforcing the Labor Contract Law and the Interim Rules on Human Resource Dispatch and signing labor contracts with employees in conventional positions, more considerations are given to adopting "human resource outsourcing," still separating the link between actual employment and employee labor.

Human resource dispatch and human resource outsourcing are two different concepts, with many differences, such as significant differences in contract nature, settlement standards, roles, and responsibilities.

Which is better, human resource dispatch or outsourcing, ultimately depends on the company's own needs. Human resource dispatch is a form of employment, and for employing companies, they can handle employment issues but cannot evade the employer's responsibilities. Human resource outsourcing is quite broad in scale. Contractors can entrust an entire task, a production line, or an order to the human resources outsourcing company to complete the entire process.

The duration of a human resource outsourcing contract can be determined by the specific project for enterprises. For the contracting company, human resource outsourcing is a "contracting and contracting concept" and is governed by contract law. The name of the contract must clearly indicate whether it is a human resources outsourcing contract or a service outsourcing contract.

The term of labor contracts signed between human resources outsourcing and employees is generally determined by the projects accepted by the outsourcing company. Generally, the shortest contract can be a few days or months, and the maximum can be several years or an unlimited term. This must also comply with the Labor Contract Law.

Human resources outsourcing company qualifications must comply with relevant company law regulations, with registered capital of no less than 500,000 RMB. If the contracted project planning qualification is required, relevant consent certificates must be obtained. Human resource outsourcing refers to the enterprise outsourcing non-core, auxiliary, seasonal, and irregular production and business processes based on its actual production situation, with the human resources outsourcing company responsible for personnel responsible for production according to plans and targets.