배움과 공유의 시간

02. Non-regular Employment Form

The labor contract law obliges life imprisonment if certain requirements are met and strictly regulates companies' unilateral dismissal.
For this reason, companies have avoided regulations under the Labor Contract Act by drastically expanding indirect employment in the form of labor strikes, regardless of industry or position, and actively hiring trainees and retired workers, in order to maintain the flexibility of employment and avoid legal constraints.

However, with the 10% total volume regulation in March 2016, labor dispatch employment has become inevitable. The entity responds by converting a large portion of the work used by dispatched workers into an external supply or other non-regular type of employment.

1. Employment of Labour Members

After the Labor Contract Act went into effect, the Chinese government passed a revised labor contract law focusing on stricter regulations on labor dispatch at the end of December 2013, which limited the employment of dispatched workers to 10 percent of the total number of employees.

(1) Overview of the labor dispatch system

In labour force employment, legal employees and actual users are separated and a three-way relationship is formed between labor dispatch companies, use companies and dispatched workers.
Labor dispatch company said, "Hiring but not using human resources"，
The use company uses human resources but uses them as a bulwark.It can be said that this type of employment is characteristic of labor dispatch.

Legal labor relations in employment of dispatched workers are established between labor dispatch companies and workers, and between labor dispatch companies and companies, and between companies and workers, and between companies and workers, a command-order relationship.

The labor dispatch company sends dispatched workers to the company, and the company pays the dispatched workers once a month, the wages and social insurance fees, and the kitchen public money.

The two dispatched workers pay the cost of managing their labor dispatch work. Usually, the cost of managing the work varies greatly depending on the blue-collar and white-collar jobs, and usually ranges from 100 to 300 yuan per month per person.

Advantages of Labour party

1 Flexibility of workforce employment

Since dispatched workers can continue to be hired in two-year increments, it is easy to adjust personnel during changes in the market environment, order reduction and business restructuring.

2 Avoiding lifetime employment

For full-time employees, after signing two consecutive fixed labor contracts, a non-fixed labor contract shall be concluded upon request by the employee, but the labor force shall not be obliged to conclude a non-fixed contract.

3 Ease of labor management

In the case of certified or on-site service workers, the labor dispatch company shall act as a proxy for the recruitment and employment procedures, and may receive assistance from the labor surveyor in the event of a labor dispute or strike.

(2) Major details of the policy on controlling labor strikes

The Labor Party Restriction Regulations, which are the enforcement regulations for labor strike regulations (enacted from March 2016), provided that its auxiliary post should be set up in consultation with the public society or its representatives, taking into account the industry and characteristics.
In other words, the company was not allowed to arbitrarily set the scope of the auxiliary post by specifying that it should be confirmed through democratic procedures and made public in-house.
In addition to the above-mentioned "precision" regulations, for "quantitative" regulations, the total proportion of dispatched workers was nailed to "10%". This includes not only "subsidiary" posts, but also dispatched workers of alternative and temporary posts.

1 Total amount regulation

The proportion of dispatched workers in auxiliary posts shall not exceed 10% of the total number of employees.
The total number of employees refers to the sum of the number of employees who have signed labor contracts directly with the company and dispatched workers.

[Example] 200 workers for the settlement of labor contract, 30 dispatched workers (22 auxiliary workers, 3 temporary workers, 5 substitutes)

ᄋ Percentage of dispatched workers in accordance with these Regulations:
30÷230 (200+30) = 13% (Total regulatory criteria exceeded by 3%)

2 Setting of the "Auxiliary" post

Only three-star (temporary, substitute, auxiliary) posts are legally available for labor dispatch.
Temporaryity (task within six months), substitution (alternative to full-time vacancies resulting from education, maternity leave, etc.) is very underutilized in real enterprises.
Thus, an absolute majority of the labour force dogs are currently being carried out under the pretext of a "subsidiary" port.

In case of auxiliary post, "subsidies" are available for labor dispatch after prior agreement between labor and management.
The category of "post" must be finalized.

1 In this case, the category of auxiliary voice port and how to use dispatched workers are prepared and the opinions of all employees are collected (e-mail, public notice, etc.).
2 The medical institution carries out the procedure for finalizing the meeting after consulting with the public or a work representative (commissioning the meeting and signing the participants).

In addition, if an entity is caught managing and using workers directly in the form of a labor strike, it is ordered by the authorities to correct it based on the Regulations for Labor-Party Restriction.

Meanwhile, the representative office of a foreign company (the judge's office) is prohibited from direct employment under Chinese law, and only indirect employment through labor dispatch is allowed. Thus, as in the past, the employment of labour force dogs is possible for all posts.