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Labor dispatch is also known asHuman resource dispatchTalent leasing, labor dispatch, and labor force leasing refer to labor contracts concluded between human resources dispatch agencies and dispatched laborers, with the dispatching enterprise (actual employment unit) providing labor remuneration to the dispatched laborer. The labor contract relationship exists between the human resources dispatch agency and the dispatched laborer, but the actual labor force payment occurs between the dispatched labor agency and the dispatching enterprise (practical employment unit).

Note that not all positions are eligible for human resource dispatch. Article 66 of the Labor Contract Law clearly states: "Employment under labor contracts is the fundamental method of employment in Chinese enterprises." Human resource dispatch employment is a supplementary method and can only be implemented in temporary, auxiliary, or alternative work positions. ”

1. Temporary work positions refer to positions with a duration not exceeding six months;

2. Auxiliary operational positions refer to non-main administrative positions that provide services for main administrative positions;

3. Alternative work positions refer to positions where, during a certain period when a worker from the employing unit is unable to work due to full-time study, leave, or other reasons, another worker can substitute for the work.

 1. Clear requirements of the Interim Rules for Human Resource Dispatch 

Although human resource dispatch allows for flexible and autonomous employment, issues such as unequal pay for equal work and lower-level benefits make workers feel their rights are not being protected.

To address these issues, the "Interim Rules on Human Resource Dispatch," which officially came into effect on March 1, 2014, set out five clear rules regarding the definition of employment positions in human resource dispatch, equal pay for equal work, social stability in cross-regional human resource dispatch, and prohibition of "fake outsourcing for real dispatch."

1. Clear and secure benefits, equal pay for equal work

Interim Rules Rule: Regarding welfare rights, employers should provide welfare benefits related to their positions in accordance with Article 62 of the Labor Contract Law and must not neglect dispatched workers.

Regarding social security rights, it is clear that when a human resources dispatch agency carries out cross-regional dispatch affairs, it must pay the social security fee in accordance with the rules of the employer's location to help the dispatched worker participate in social security.

These new rules reflect the demand for equal pay for equal work in terms of stable welfare and compensation.

2. Clear and limited to three positions

Employers may only employ dispatched workers in temporary, auxiliary, or alternative positions. The Interim Rules further clarify the "auxiliary" aspect among the "three characteristics": when an employer decides to use auxiliary positions of dispatched workers, it must be discussed by the employee representative assembly or all employees, propose plans and opinions, negotiate equally with the trade union or employee representatives, and publicly announce this within the unit.

3. Clarity must not exceed 10% of total labor

Article 4 of the Interim Rules states that the number of dispatched workers employed by an employing unit must not exceed 10% of its total employment. The total employment volume refers to the sum of the number of people contracted by the employing unit and the number of dispatched workers employed.

4. Clarify the main responsibility for work injuries and occupational diseases

The Interim Rules are clear: if a dispatched worker suffers an accidental injury due to work at the employing unit, the human resources dispatch agency must lawfully request work injury confirmation, and the employing unit shall assist in investigating and verifying the work injury confirmation. The human resources dispatch agency bears the duty of ensuring work injury security but can agree on compensation methods with the employing unit.

5. Clearly curb the phenomenon of "fake outsourcing and real dispatch."

The "Rules" clearly state that employers and human resource dispatch companies engaging in "human resource dispatch" under the guise of "outsourcing" and "contracting" will be classified as illegal human resource dispatch.

2. What should be noted when signing a human resources dispatch contract?

1. When signing a human resources dispatch contract, workers must avoid "blank contracts." They need to clearly identify who the dispatch and hiring units are before signing.

2. Human resources dispatch agencies shall enter into human resources dispatch agreements with the employing units, agreeing on matters related to dispatch operations, such as "dispatch positions and number of personnel, dispatch period, labor remuneration, social stability amounts and payment methods, and responsibilities that violate the agreement."

When signing the contract, the employer must fully understand all this information to ensure their legal rights are not harmed.

3. Human resources dispatch agencies and employing units shall not charge fees to dispatched workers.

4. The term of a labor dispatch contract cannot be arbitrarily set; it must be a fixed-term contract of at least two years.

3. Common Questions About Human Resource Dispatch 

1. I am a human resources dispatch employee, and the human resources dispatch company has not established a labor union. The employer stated that since we are not union members, we cannot enjoy holiday bonuses or other member benefits. In our situation, where should we join the union? Can they enjoy the benefits of the union?

Answer: According to the Labor Contract Law of the People's Republic of China and the All-China Federation of Trade Unions' "Rules on Organizing Human Resource Dispatch Workers to Participate in Trade Unions" (Zonggongfa [2009] No. 21), both dispatching and employing units must establish trade union organizations. Workers have the right to participate in trade unions and are not restricted by anyone. Although they are dispatched workers, whether at a human resources dispatch agency or an employing unit, they have the legal right to participate in and organize labor unions.

In addition, if a human resources dispatch agency does not have a labor union, the dispatched worker directly participates in the employer's union. Therefore, those who can express their demands to the labor union of the human resources dispatch agency or the employer's union or their superior union can directly participate in the union and enjoy the benefits of union membership.

2. Who pays social insurance for human resource dispatch?

Answer: Which party will pay the social security for the dispatched personnel is confirmed through negotiation between the human resources dispatch company and the actual employing unit. But no matter how agreed they are, the human resources dispatch agency or employer must pay various social security fees for the dispatched personnel, and cannot shirk responsibility or infringe on the rights of the dispatched personnel.

3. I am a human resources dispatch employee. Due to work requirements, I often work overtime during holidays, but I have never received overtime pay from the human resources dispatch company or employer. What should I do?

Answer: Dispatched workers have the right to receive wages for their labor, including overtime pay, just like other workers. Article 62 of the Labor Contract Law: "The employing unit shall fulfill the following responsibilities: (2) Inform the dispatched worker of the work requirements and labor remuneration; (3) Pay overtime pay, performance bonuses, and provide benefits related to the work position; ”

In such cases, if the employer, dispatch company, and practical employer have a specific agreement on overtime pay, pay overtime according to the agreement. If no specific agreement is made, the actual employer should pay the overtime wages.