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01 Types of Employment

Since the Labor Contract Act took effect in 2008, legal risks for regular employment have increased sharply. The Labor Contract Act was because it significantly strengthened the legal protection of workers by directly linking corporate illegal labor activities to economic compensation to workers in order to ensure stability and long-term labor relations. Given the increased risk of regular employment, it is necessary for an entity to break away from the single shift in regular employment and increase the elasticity of employment by using various types of non-regular employment suitable for the job characteristics.


1. Types of employment patterns

If the company requires cleaning staff, there are various types of non-regular employment as shown below.


1) Contracts with cleaning company are contracted and the cleaning work is entrusted. - Business supply (contract)


2) Employ non-one-time (part-time) staff. - Non-daily employment (direct employment)


3) Hire a retired person. - Retirement inventory (civil accident)


4) Through a labor dispatch company, dispatched workers are employed. - Employment of labor workers (indirect employment)


5) A full-time employee shall be employed as a full-time employee and shall be exclusively responsible for cleaning. - Form of formal employment (direct employment)

From the standpoint of the company, it would be reasonable to choose the employment method of 1),2),3) that has no obligation to pay social insurance or to pay economic compensation, and that can terminate the use relationship at any time. However, most of the company's jobs require professionalism and responsibility, and therefore do not have a variety of options, such as hiring cleaning staff.


With the labor cost burden of regular employment and strict restrictions imposed on legal dismissal, it is necessary for the company to manage the workforce by combining employment in the form of non-regular workers, moving away from the single employment of regular workers, taking into account their job characteristics, importance and possibility of substitution.



2. Risk of temporary public employment

In China, temporary work is called various terms such as 小 and 钟点工. However, with the promulgation of the Labor Contract Act, it was clearly legally prescribed in the form of "non-one-time" employment. For only a few months, they should either hire full-time full-time workers or in the form of part-time employees. The legal risk is very high if full-time employment is hired on a temporary basis without signing a contract that clarifies the type of employment. Social insurance, including double wages and economic compensation for failure to pass a written contract
It may be required to pay supplemental payments.

[Example] Risk of liability for compensation for temporary public employment


Because the industry is clearly divided between the peak and the off-season, many auxiliary workers are needed during the peak season, and these auxiliary workers are employed at peak times. The president of the company thought that because these workers were not full-time employees, they did not have to sign labor contracts and paid according to working hours.
At the end of the three-month grace period, as the company tried to retire after notifying "temporary workers" of the termination of their work duties, they had demanded that they pay double the wages for the period of non-payment of labor contracts as well as economic compensation.
In court, the company was ordered to pay 0.5 months of economic compensation for each person, two months of unpaid compensation for a written contract and a total of 2.5 months. After all, due to the lack of understanding of the law rather than the workers, they paid the harsh price of hiring for three months and paying 5.5 months of wages.


[working-level measures]

When an entity needs to perform a particular task on a temporary or seasonal basis, approximately four types of choices exist.

1) Non-one-time (Arbyte) Employment: In this way, non-one-time labor contracts are signed.
You can hire. However, working hours are limited to an average of 4 hours per day and 24 hours per week.
Not suitable for full-time work.

 

2) Labor party recruitment methods: indirect employment through labor dispatch companies. Short-term indirect employment for weeks or months is also possible in cases such as sales promotion sources, but normally for general positions, the contract period of two years is required by the labor dispatch company.

 

3) Civil accident: Retirement workers after 50 years of age and 60 years of age are not regarded as laborers under labor laws, so they can sign labor contracts and hire them full-time.

 

4) Delivery of work: Subcontract the entire related work to an outside professional. For example, packing, material injection, etc.

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