Industry Information

Human resource dispatch refers to a method in which dispatching enterprises sign labor contracts with dispatched personnel, and dispatching enterprises and employing enterprises sign human resource dispatch agreements. Employing enterprises require dispatching companies to dispatch labor personnel based on business needs and provide remuneration. In terms of tax law rules, the "Notice from the Ministry of Finance and the State Administration of Taxation on Further Clarifying and Fully Implementing Policies for Human Resource Dispatch Services and Toll Road Toll Fee Deductions under the VAT Reform Pilot" (Cai Shui [2016] No. 47) defines "human resource dispatch" as follows: Human resource dispatch services refer to human resource dispatch companies assigning employees to the employer to meet the various sensitive employment needs of employers, where they are managed and provided with services for their work.

"Human Resource Outsourcing," abbreviated as HRO, originated in the 1980s. It refers to enterprises outsourcing one or more human resource tasks or functions based on their own needs, entrusting them to specialized companies or arrangements to handle them. This aims to reduce HR handling costs and maximize enterprise efficiency, covering all internal HR business within the enterprise.

Although we say that selectively using human resource outsourcing is beneficial and advantageous, if business owners still understand "outsourcing" at the level of "simply reducing costs," then cooperation with outsourcing service providers will miss many "strategic" implications.

Human resource dispatch, also known as human resource dispatch, is a new labor intermediary service project launched in China's labor market in recent years based on market demand. It is a new method of employing personnel. Employers can, based on their own work and development needs, dispatch various required personnel (sales staff, clerks, general technicians, labor workers, etc.) through a legitimate human resources dispatch company.

Human resources dispatch procedures are simple. The employer signs a "Human Resources Dispatch Contract" with the dispatch organization, specifies the needs of dispatched personnel (personnel can be recruited by the employer themselves or through a staffing company), determines the list of employees, and then the dispatch organization handles the employment procedures. The specific procedures for dispatching are as follows:

To standardize the labor contract system and protect the legitimate rights and interests of employers and workers, according to the requirements of the labor and social security departments, "employers must sign labor contracts with employees, pay social insurance for them, and enjoy all benefits according to the rules." If the employer meets standard employment standards in a short period and the workload is extremely large, entrusting a human resources dispatch company to carry out human resource dispatch for the company and signing labor contracts with employees is a shortcut.