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OpinionsoftheShanghaiMunicipalHumanResourcesandSocialSecurityBureauonIssuesconcerningRegulating
EmploymentinLaborDispatch[Effective]
[
CLI.12.875625(EN)
Issuingauthority ShanghaiMunicipalHumanResources&SocialSecurityBureau
DocumentNumber
No.27[2014]oftheShanghaiMunicipalHumanResourcesand
SocialSecurityBureau
Dateissued 06302014
LevelofAuthority LocalRegulatoryDocuments
Areaoflaw GovernmentAffairs
OpinionsoftheShanghaiMunicipalHumanResourcesandSocialSecurityBureauonIssuesconcerning
RegulatingEmploymentinLaborDispatch
(No.27[2014]oftheShanghaiMunicipalHumanResourcesandSocialSecurityBureau)
Thehumanresourcesandsocialsecuritybureausofalldistrictsandcountiesandallenterprise(group)
companiesandrelevantentitiesofthisMunicipality:
2014
27
ToimplementtheDecisionoftheStandingCommitteeoftheNationalPeople'sCongressonAmendingthe
EmploymentContractLawofthePeople'sRepublicofChina(hereinafterreferredtoastheAmending
Decision),theInterimProvisionsoftheMinistryofHumanResourcesandSocialSecurityonLabor
Dispatch(hereinafterreferredtoastheProvisionsonDispatch),andtheMeasuresoftheMinistryof
HumanResourcesandSocialSecurityfortheImplementationofAdministrativeLicenseforLaborDispatch
(hereinafterreferredtoastheLicenseMeasures),thefollowingimplementationopinionsonseveral
specificissuesintheprocessofimplementationareherebyissued:
I.Issuesconcerningregulatingtheproportionofemploymentduringthetransitionalperiod
InaccordancewiththeprovisionsoftheProvisionsonDispatch,wheretheproportionofdispatched
workersemployedbyanemployerismorethan10%ofthetotalemployeesoftheemployerbeforethe
10%
ProvisionsonDispatchcameintoforce,theemployershallreducesuchdispatchedworkerstoaprescribed
proportionwithintwoyearsasoftheimplementationoftheProvisionsonDispatch.Anemployershall,in
accordancewiththerequirementsoftheProvisionsonDispatch,makeaplanforadjustingemployment,
specifytheplanforreducingtheemploymentproportionofdispatchedworkersandthetimelimit,and
reporttheplanforadjustingemploymenttothelocaladministrativedepartmentofhumanresourcesand
socialsecurityatthecountylevelforrecordation.Foranemployerthequantityofwhoseemployed
dispatchedworkersaftertheimplementationoftheAmendingDecisiondoesnotexceedtheprescribed
proportion,toensurethattheplanforadjustingemploymentisimplementedinasmoothmannerandthe
totalquantityofdispatchedworkersisreduced,intheprocessofreducingtheproportionofemployment,
newdispatchedworkerswhoaretrulyinneedandrecruitedforspecialproductionandbusinessoperation
needsmustbeincludedintotherangeofproportionreductionintheplanforadjustingemploymentas
reportedforrecordation.
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II.Issuesconcerningthehandlingofadministrativelicensesthatarerevoked,suspended,ornotrenewed
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InaccordancewiththeLicenseMeasures,theNoticeofShanghaiMunicipalityonNotificationcommitment
inAdministrativeExaminationandApproval(No.46[2012],ShanghaiMunicipalPeople'sGovernment),
2012
andtheNoticeonIssuesconcerningtheImplementationofAdministrativeLicenseforLaborDispatch(No.
46
2013
32
Comments
32[2013],ShanghaiMunicipalHumanResourcesandSocialSecurityBureau),wheretheLaborDispatch
BusinessLicenseofalabordispatchentityfailstoberenewed,orisrevokedorsuspendedafterexpiry
becausethelabordispatchentitynolongermeetsthelicenseconditions,theoriginalemploymentcontract
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Opinions of the Shanghai Municipal Human Resources and Social Security Bureau on Issues concerning Regulating Employment in Labor Dispatch
andlabordispatchagreementthatwereestablishedaccordingtothelawmaycontinuetobeperformed
untiltheexpiryofthedispatchtimelimit.
III.Issuesconcerningimplementationofequalpayforequalwork
AnemployerofthisMunicipalityshall,inaccordancewiththeprovisionsoftheAmendingDecisiononequal
payforequalwork,adoptthesamemethodsforthedistributionoflaborremunerationforthedispatched
workersanditsemployeesatthesameposition.
Whereanemployerfailstoadoptthesamemethodsforthedistributionoflaborremunerationunderthe
principleofequalpayforequalwork,theadministrativedepartmentofhumanresourcesandsocialsecurity
shallorderittomakerectificationwithinaprescribedtimelimitiftheemployerfailstomakerectification
withintheprescribedtimelimit,theadministrativedepartmentofhumanresourcesandsocialsecurityshall
punishitinaccordancewiththerelevantprovisionsoftheRegulationsonSupervisionofLaborSecurity.
IV.Issuesconcerningauxiliarypositions
Anemployershall,inaccordancewiththeprovisionsoftheProvisionsonDispatch,putforwardproposals
andsuggestionsafterdiscussionbytheemployee'scongressorbyallemployees,conductequal
consultationswithitstradeunionoremployees'representativestodeterminethescopeofauxiliary
positionsapplicabletotheemploymentofdispatchedworkers,andmakeanannouncementinternally.
Whereanemployerfailstodeterminethescopeofauxiliarypositionsasrequired,theadministrative
departmentofhumanresourcesandsocialsecurityshallorderittomakerectificationwithinaprescribed
timelimitiftheemployerfailstomakerectificationwithintheprescribedtimelimit,theadministrative
departmentofhumanresourcesandsocialsecurityshallpunishitinaccordancewiththerelevant
provisionsoftheRegulationsonSupervisionofLaborSecurity.
V.Issuesconcerningworkrelatedinjuriesofdispatchedworkers
WhereadispatchedworkerisinjuredinanaccidentwhileworkingforanemployerofthisMunicipality,the
labordispatchentityorthebranchofalabordispatchentityinanotherprovinceormunicipalitythatis
establishedinthisMunicipalityshallfileanapplicationfordeterminationofaworkrelatedinjurywiththe
administrativedepartmentofhumanresourcesandsocialsecurityatthecountylevelintheplaceof
registration,andassumesuchworkrelatedinjuryinsuranceliabilitiesasapplicationforlaborcapacity
assessmentandapplicationforobtainingworkrelatedinjuryinsurancebenefits.Theemployershalloffer
assistanceintheinvestigationandverificationinrespectofthedeterminationofworkrelatedinjury,and
assumesuchworkrelatedinjuryinsuranceliabilitiesaspaymentofinsurancebenefitsandfloatingratethat
shouldbeassumedbyanemployerinaccordancewiththeprovisionsofthestateandthisMunicipality.
WherealabordispatchentityinanotherprovinceormunicipalityhasnobranchinthisMunicipality,the
employerofthisMunicipalityshallfileanapplicationfordeterminationofaworkrelatedinjurywiththe
administrativedepartmentofhumanresourcesandsocialsecurityatthecountylevelintheplaceof
registrationandassumeworkrelatedinjuryinsuranceliabilitiesinaccordancewiththeworkrelatedinjury
insuranceprovisionsofthestateandthisMunicipality.
Whereadispatchedworkerwithworkrelatedinjuryisreturnedtothelabordispatchentityduringtheperiod
ofexistenceofalaborrelationship,theemployershall,inaccordancewiththeprovisionsofthe
ImplementationProceduresofShanghaiMunicipalityonWorkrelatedInjuryInsurance,settlethelumpsum
disabilityemploymentsubsidytowhichthedispatchedworkerislegallyentitledtowiththelabordispatch
entitywhentheworkerrescindsorterminatesthelaborrelationshipwiththelabordispatchentity,thework
relatedinjuryinsurancefundsandthelabordispatchentityshallpaythelumpsumworkrelatedinjury
medicalsubsidyandthelumpsumdisabilityemploymentsubsidyrespectivelyasrequired.
Thelabordispatchentityshallassumejointandseveralcompensationliabilitiesfortheworkrelatedinjury
insuranceliabilityoftheemployer.
VI.Issuesconcerningrecruitmentandemploymentrecordationandsocialinsurancefortransregional
labordispatch
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WherealabordispatchentityinanotherprovinceormunicipalitydispatchesworkerstothisMunicipality,
thelabordispatchentityshall,accordingtothestandardsofthisMunicipality,paysocialinsurance
premiumsforthedispatchedworkersinthisMunicipality.
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WherealabordispatchentityinanotherprovinceormunicipalityhasabranchinthisMunicipality,the
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branchshallhandletheformalitiesforrecruitmentrecordationandaccordingtothestandardsofthis
Municipality,paysocialinsurancepremiumsfordispatchedworkersinthisMunicipality.Wherethelabor
dispatchentityinanotherprovinceormunicipalityhasnobranchinthisMunicipality,theemployerofthis
Municipalityshallhandletheformalitiesforemploymentrecordationandaccordingtothestandardsofthis
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Opinions of the Shanghai Municipal Human Resources and Social Security Bureau on Issues concerning Regulating Employment in Labor Dispatch
Municipality,paysocialinsurancepremiumsforthedispatchedworkersinthisMunicipalityonbehalfofthe
labordispatchentity.
WherealabordispatchentityinanotherprovinceormunicipalityhasnobranchinthisMunicipalityandthe
employerofthisMunicipalityfailstopaysocialinsurancepremiumsinthisMunicipalityasrequired,if,in
caseofdisputes,thedispatchedworkersrequirethattheemployerofthisMunicipalityshouldassume
liabilitiesforsuchsocialinsurancebenefitsasworkrelatedinjuryandmedicaltreatment,theemployerof
thisMunicipalityshallfirstassumesuchliabilities.
Wherealabordispatchentityinanotherprovinceormunicipalitydispatchesitsemployeeswhoarenot
permanentresidentsofthisMunicipalitytopositionsoftheemployerofthisMunicipalityintheplacewhere
thelabordispatchentityinanotherprovinceormunicipalityislocated,theprovisionsofthisArticleshallnot
apply.
VII.Issuesconcerningadvancepaymentofbackpaysecurityfunds
Wherealabordispatchentityoremployerfallsundercircumstancesofadvancepaymentofbackpay
securityfunds,afteridentifyingdisputesandascertainingbackpayfacts,therelevantadministrativeorgan
may,inaccordancewiththeSeveralProvisionsofShanghaiMunicipalityonRaisingEnterprises'BackPay
SecurityFundsandAdvancingPayment,makeanadvancepaymentofbackpayofworkers,butitmakes
anadvancepaymentforthesameunpaiditemofthesameworkeronlyforonce.
VIII.Issuesconcerningtransformationofdispatchingofworkerstohumanresourceserviceoutsourcing
Wherealabordispatchentityoremployertransformsthedispatchingofworkerstohumanresourceservice
outsourcing,thelabordispatchentityoremployershalladjusttheworkermanagementmannerformed
accordingtotheoriginallegalrelationshipoflabordispatchanddeterminemanagementboundariesina
reasonablemanneraccordingtothenatureofhumanresourceserviceoutsourcingandbyreferencetothe
principleofdirectmanagementandindirectmanagementsoastopreventrelevantdisputesarisingfrom
thetransformation.Whereanemployeremploysworkersinthemanneroflabordispatchunderthename
ofundertakingoroutsourcing,theemployershallbepunishedinaccordancewiththeProvisionson
Dispatch.
ShanghaiMunicipalHumanResourcesandSocialSecurityBureau
June30,2014
2014
30
CLI.12.875625(EN)
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Article 53 Industrial or regional collective contracts may be concluded between the labor unions and the
representatives of enterprises in industries such as construction, mining, catering services, etc. in the
regions at or below the county level.
Article 54 After a collective contract has been concluded, it shall be submitted to the labor administrative
department. The collective contract shall become effective after the lapse of 15 days from the date of
receipt thereof by the labor administrative department, unless the said department raises any objections to
the contract.
A collective contract that has been concluded according to law is binding on both the employer and the
employees. An industrial or regional collective contract is binding on both the employers and employees in
the local industry or the region.
Article 55 The standards for remunerations, working conditions, etc. as stipulated in a collective contract
shall not be lower than the minimum criterions as prescribed by the local people's government. The
standards for remunerations, working conditions, etc. as stipulated in the labor contract between an
employer and an employee shall not be lower than those as specified in the collective contract.
Article 56 If an employer's breach of the collective contract infringes upon the labor rights and interests of
the employees, the labor union may, according to law, require the employer to bear the liability. If a dispute
arising from the performance of the collective contract is not resolved after negotiations, the labor union
may apply for arbitration or lodge a lawsuit in pursuance of law.
Article 57 To engage in the labor dispatch business, an entity shall satisfy the following conditions:
2.It has fixed business premises and facilities suitable for businesses;
3.It has labor dispatch management rules in compliance with the provisions of laws and administrative
regulations; and
4.It satisfies other conditions prescribed by laws and administrative regulations.
To engage in the labor dispatch business, an entity shall apply to the labor administrative department for
administrative licensing in accordance with law; and after obtaining licensing, shall undergo corresponding
company registration formalities in accordance with law. No entity or individual may engage in the labor
dispatch business without licensing.
Article 58 Worker dispatch service providers are employers as mentioned in this Law and shall perform an
employer's obligations for its employees. The labor contract between a worker dispatch service provider
and a worker to be dispatch
dispatched shall, in addition to the matters specified in Article 17 of this law, specify
such matters as the entity to which the worker will be dispatch
dispatched, the term of dispatch
dispatch, positions, etc.
The labor contracts between a worker dispatch service provider and the workers to be dispatch
dispatched shall be
fixed-term labor contract with a term of not less than two years. The worker dispatch service provider shall
pay the remunerations on a monthly basis. During the time period when there is no work for the workers,
the worker dispatch service provider shall compensate the workers on monthly basis at the minimum wage
prescribed by the people's government of the place where the worker dispatch service provider is located.
Article 59 To dispatch workers, a worker dispatch service provider shall enter into dispatch agreements
with the entity that accepts the workers under the dispatch arrangement (hereinafter referred to as the
accepting entity). The dispatch agreements shall stipulate the positions to which the workers are
dispatched, the number of persons to be dispatch
dispatch
dispatched, the term of dispatch
dispatch, the amounts and terms of
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paymentsofremunerationsandsocialsecuritypremiums,andtheliabilityforbreachofagreement.
Anacceptingentityshalldecidewiththeworkerservicedispatchprovideronthetermofdispatchbasedon
dispatch
dispatch
theactualrequirementsofthepositions,anditshallnotdismemberacontinuoustermoflaboruseintotwo
ormoreshorttermdispatchagreements.
dispatch
Article60Aworkerdispatchserviceprovidershallinformtheworkersdispatchedofthecontentofthe
dispatch
dispatch
dispatch
dispatchagreements.
Noworkerdispatchserviceprovidermayskimpanyremunerationthatanacceptingentitypaystothe
dispatch
workersaccordingtothedispatchagreement.
dispatch
Noworkerdispatchserviceprovideroracceptingentitymaychargeanyfeeagainstanydispatchedworker.
dispatch
dispatch
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Article61Ifaworkerdispatchserviceproviderassignsaworkertoanacceptingentityinanotherregion,
dispatch
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theworker'sremunerationandworkconditionsshallbeinlinewiththerelevantstandardsoftheplace
wheretheacceptingentityislocated.
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Article62Anacceptingentityshallperformthefollowingobligations:
1.Toimplementstatelaborstandardsandprovidethecorrespondingworkingconditionsandlabor
protection
2.Tocommunicatethejobrequirementsandlaborcompensationsforthedispatchedworkers
dispatch
3.Topayovertimeremunerationsandperformancebonusesandprovidebenefitsrelevanttotheposition
4.Toprovidethedispatchedemployeeswhoassumethepositionswithrequiredtrainingand
dispatch
5.Toimplementanormalwageadjustmentsysteminthecaseofcontinuousdispatch.
dispatch
Noacceptingentitymayinturndispatchtheworkerstoanyotheremployer.
dispatch
Article63Dispatchedworkersshallhavetherighttoreceivethesamepaywiththatreceivedbythe
Dispatch
employers'employeesforthesamework.Anemployershall,undertheprincipleofequalpayforequal
work,adoptthesamemethodsforthedistributionoflaborremunerationforthedispatchedworkersandits
dispatch
employeesatthesameposition.Wheretheemployerhasnoemployeeatthesameposition,itshall
determinetheremunerationbyreferencetothatpaidtoemployeesatthesameorsimilarpositionatthe
placewheretheemployerislocated.
Theemploymentcontractsconcludedbetweenthelabordispatchentityanddispatchedworkersandthe
dispatch
dispatch
labordispatchagreementconcludedbetweenthelabordispatchentityandtheemployershallindicateor
dispatch
dispatch
stipulatethatthelaborremunerationpaidtodispatchedworkersshallcomplywiththeprovisionsofthe
dispatch
precedingparagraph.
Article64Theworkersdispatchedhavetherighttojointhelaborunionoftheworkerdispatchservice
dispatch
dispatch
provideroroftheacceptingentityortoorganizesuchunions,soastoprotecttheirownlawfulrightsand
interests.
Article65Aworkerdispatchedmay,accordingtoArticles36and38ofthisLaw,dissolvethelaborcontract
dispatch
betweenhimandtheworkerdispatchserviceprovider.
dispatch
WhereaworkerdispatchedisunderanyofthecircumstancesasmentionedinArticle39andArticle40(i)
dispatch
and(ii),theacceptingentitymayreturntheworkertotheworkerdispatchserviceprovider,theworker
dispatch
dispatch
dispatchserviceprovidermaydissolvethelaborcontractwiththeworker.
Article66Employmentunderemploymentcontractsisthebasicformofenterprises'employingworkersin
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China. Labor dispatch is a supplementary form and shall exclusively apply to provisional, auxiliary or
substitutive positions.
Provisional position' as prescribed in the preceding paragraph means a position that exists for less than six
months; auxiliary position' means a non-major business position providing services to main business
positions; and substitutive position' means a position that may be held by any other employee on a
substitutive basis during a certain period of time when the employee of the employer who originally holds
the position is unable to work because such employee is undergoing full-time training, on vacation or for
any other reason.
The employer shall strictly control the number of dispatch
dispatched workers, which shall not exceed a certain
proportion of its total employees, and the specific proportion shall be prescribed by the labor administrative
department of the State Council.
Article 67 No accepting entity may establish any worker dispatch service to dispatch the workers to itself
and to its subsidiaries.
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Article 68 The part-time employment is a form of labor in which the remuneration is mainly calculated on
hourly basis, the average working hours of a worker per day shall not exceed 4 hours, and the aggregate
working hours per week for the same employer shall not exceed 24 hours.
Article 71 Either of the parties to part-time employment may inform the other party of the termination of
labor at any time. Upon the termination of a part-time employment, the employer will pay no economic
compensation to the employee.
Article 72 The criterions for the calculation of part-time employment on hourly basis shall not be lower than
the minimum hourly wage prescribed by the people's government of the place where the employer is
located.
The maximum remuneration settlement and payment cycle for part-time employment shall not exceed 15
days.
Chapter VI Supervision and Inspection
Article 73 The labor administrative department of the State Council shall be responsible for the supervision
and inspection of the implementation of the system of labor contracts throughout the country.
The labor administrative department of the local people's governments at the county level and above shall
be responsible for the supervision and inspection of the implementation of the system of labor contracts
within their respective administrative areas.
During the supervision and inspection of the implementation of the system of labor contracts, the labor
administrative departments of the people's governments at the county level and above shall solicit the
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CLI.4.217807(EN)
Issuing authority
Document Number
Security
Date issued
01-24-2014
Level of Authority
Departmental Rules
(No. 22)
22
The Interim Provisions on Labor Dispatch, as deliberated and adopted at the 21st executive meeting of the
2013
Ministry of Human Resources and Social Security on December 20, 2013, are hereby issued and shall
come into force on March 1, 2014.
21
12
20
2014
Minister of the Ministry of Human Resources and Social Security: Yin Weimin
January 24, 2014
2014
24
Article 1 These Provisions are formulated in accordance with the Labor Contract Law of the People's
Republic of China (hereinafter referred to as the Labor Contract Law), the Regulation on the
Implementation of the Labor Contract Law of the People's Republic of China (hereinafter referred to as the
Regulation on the Implementation of the Labor Contract Law) and other applicable laws and
administrative regulations for purposes of regulating labor dispatch, protecting the lawful rights and
interests of workers, and promoting the development of harmonious and stable labor relations.
Article 2 These Provisions shall apply to the provision of labor dispatch services by labor dispatch entities
and to the employment of dispatched workers by enterprises (hereinafter referred to as the employers).
These Provisions shall apply to the employment of dispatched workers by legally-established partnership
organizations such as accounting firms and law firms, foundations, private non-enterprise entities and other
organizations.
Article 3 Employers may employ dispatched workers in temporary, auxiliary or substitutable positions only.
For the purpose of the preceding paragraph, temporary positions means the positions that exist for not
more than six months; auxiliary positions means the positions of non-main business that provide services
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for the positions of main businesses; and substitutable positions means the positions that can be held by
substitute workers during a certain period of time when the employees of the employers who originally hold
such positions are unable to work because they are undergoing full-time study, or on leave or for any other
reason.
To determine auxiliary positions in which dispatched workers are to be employed, an employer shall put
forward proposals and suggestions after discussion by the employees' congress or by all employees,
conduct equal consultations with its trade union or employees' representatives, and shall make an
announcement internally.
Article 4 An employer shall strictly control the number of dispatched workers employed which shall not
exceed 10% of the total number of its workers.
10%
For the purpose of the preceding paragraph, the total number of workers means the sum of the number of
employees who have entered into labor contracts with the employer and the number of dispatched workers
employed by the employer.
An employer that calculates the proportion of the dispatched workers employed refers to an employer that
can enter into labor contracts with workers in accordance with the Labor Contract Law and the Regulation
on the Implementation of the Labor Contract Law.
Chapter III Conclusion and Performance of Labor Contracts and Labor Dispatch Agreements
Article 5 A labor dispatch entity shall enter into written labor contracts with the dispatched workers for a
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(13) other matters that should be included in the labor dispatch agreement as prescribed by laws,
regulations and rules.
Article 8 A labor dispatch entity shall perform the following obligations with respect to dispatched workers:
(1) Truthfully informing the dispatched workers of the matters provided for in Article 8 of the Labor Contract
Law, the rules and regulations that should be complied with and the content of the labor dispatch
agreement.
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(2) Establishing training rules to provide the dispatched workers with training on job-related knowledge and
safety education.
(3) Paying the labor remuneration and other benefits to the dispatched workers in accordance with the
relevant provisions of the state and the labor dispatch agreement.
(4) Paying social insurance premiums and handling relevant social insurance formalities for the dispatched
workers in accordance with the relevant provisions of the state and the labor dispatch agreement.
(5) Urging the employers to provide the dispatched workers with labor protection and work safety and
hygiene conditions in accordance with law.
(6) Issuing certificates of rescission or termination of labor contracts in accordance with law.
(7) Providing assistance in settling disputes between the dispatched workers and the employer.
(8) Other matters as prescribed by laws, regulations and rules.
Article 9 An employer shall, in accordance with Article 62 of the Labor Contract Law, provide the
dispatched workers with position-related welfare benefits, and may not discriminate against the dispatched
workers.
Article 10 Where a dispatched worker is injured in a work-related accident while working for an employer,
the labor dispatch entity shall apply for determination of a work-related injury in accordance with law, and
the employer shall assist it in the investigation and verification in respect of the determination of workrelated injury. The labor dispatch entity shall assume the work-related injury insurance liability, but it may
agree with the employer on the compensation methods.
Where a dispatched worker applies for diagnosis or assessment of an occupational disease, the employer
shall be responsible for dealing with the matters relevant to the diagnosis or assessment of the
occupational disease, and truthfully provide the materials required for the diagnosis or assessment of the
occupational disease, such as the occupational history and the history of exposure to occupational hazards
of the dispatched worker, and the testing results of occupational hazard factors at the workplace, and the
labor dispatch entity shall provide other materials necessary for the diagnosis or assessment of the
occupational disease of the dispatched worker.
Article 11 Where the administrative license of a labor dispatch entity is not renewed upon expiration or its
Labor Dispatch Business License is cancelled or revoked, the labor contracts that it has already concluded
with the dispatched workers in accordance with law shall continue to be performed until expiration. The
labor contracts may be rescinded if both parties reach a consensus through negotiations.
Article 12 Under any of the following circumstances, an employer may return a dispatched worker to the
labor dispatch entity:
(1) The employer falls under the circumstance as prescribed in Article 40 (3) or Article 41 of the Labor
Contract Law.
(2) The employer is declared bankrupt, has its business license revoked, is ordered to close down, or is
cancelled in accordance with law, or decides to dissolve in advance or to discontinue business upon
expiration of its operation term. Or
(3) The labor dispatch agreement is terminated upon expiration.
During the period when the dispatched worker has no job after being returned, the labor dispatch entity
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shall pay remuneration to him/her on a monthly basis at a rate not lower than the minimum wage standards
specified by the local people's government.
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Article 13 Where a dispatched worker falls under any of the circumstances as prescribed in Article 42 of
the Labor Contract Law, the employer shall not return the dispatched worker to the labor dispatch entity
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concerned in accordance with the provisions of Item (1) of Paragraph 1 of Article 12 herein before the
period of dispatch expires; and if the period of dispatch expires, the dispatched worker can be returned only
when the period of dispatch is extended until the relevant circumstance disappears.
Article 14 A dispatched worker may rescind the labor contract concluded with a labor dispatch entity upon
30
30 days' prior written notice to such entity. A dispatched worker in his/her probation period may rescind the
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labor contract with the labor dispatch entity upon three days' prior notice. The labor dispatch entity shall
promptly inform the employer concerned of the dispatched worker's notice to rescind the labor contract.
Article 15 Where a dispatched worker who is returned by an employer in accordance with Article 12 herein
disagrees to the labor dispatch entity's maintaining or improving the conditions stipulated in the labor
contract when being re-dispatched, the labor dispatch entity may rescind the labor contract.
Where a dispatched worker who is returned by an employer in accordance with Article 12 herein disagrees
to the labor dispatch entity's lowering the conditions stipulated in the labor contract when being redispatched, the labor dispatch entity may not rescind the labor contract, unless the dispatched worker so
requests.
Article 16 Where a labor dispatch entity is declared bankrupt, has its business license revoked, is ordered
to close down, or is cancelled in accordance with law, or decides to dissolve in advance or to discontinue
business upon expiration of its operation term, the labor contracts concerned shall be terminated. The
employer shall negotiate with the labor dispatch entity about proper placement of the dispatched workers.
Article 17 Where a labor dispatch entity rescinds or terminates a labor contract with a dispatched worker
under any of the circumstance as prescribed in Article 46 of the Labor Contract Law or Article 15 or 16
herein, it shall pay economic compensation to the dispatched worker in accordance with law.
Article 18 Where a labor dispatch entity dispatches a worker from one region to another, it shall purchase
social insurance for the dispatched worker at the place where the employer concerned is located, and pay
social insurance premiums in accordance with the relevant provisions of the place where the employer is
located, and the dispatched worker is entitled to the social insurance benefits in accordance with the
relevant provisions of the state.
Article 19 Where a labor dispatch entity has a branch at the place where the employer concerned is
located, the branch shall go through the formalities for insurance purchase and pay social insurance
premiums for the dispatched worker
Where a labor dispatch entity has no branch at the place where the employer concerned is located, the
employer shall go through the formalities for insurance purchase and pay social insurance premiums for
the dispatched worker on behalf of the labor dispatch entity.
Article 20 Any labor dispatch entity or employer that violates the relevant provisions of the Labor Contract
Law and the Regulation on the Implementation of the Labor Contract Law on labor dispatch shall be dealt
with in accordance with Article 92 of the Labor Contract Law.
Article 21 Where a labor dispatch entity rescinds or terminates a labor contract with a dispatched worker in
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violation of these Provisions, Article 48 or Article 87 of the Labor Contract Law shall apply.
Article 22 Where an employer violates the provisions of paragraph 3 of Article 3 herein, the relevant
department of human resources and social security shall order it to make corrections, and give it a warning;
and if any damage has been caused to the dispatched worker, the employer shall be liable for
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Article 25 The employment of dispatched workers by institutions such as foreign enterprises' resident
representative offices and foreign financial institutions' representative offices in China and the employment
of international oceangoing seafarers in the form of labor dispatch by seafarer employers shall not be
subject to the restrictions on the proportion of dispatched workers employed in temporary, auxiliary or
substitutable positions.
Article 26 For the purpose of these Provisions, labor dispatch excludes the circumstance where an
employer sends its employee to work abroad or for a family or a natural person.
Article 27 The employment of workers by an employer in the form of labor dispatch in the name of
contracting or outsourcing shall be governed by these Provisions.
Article 28 Where, before these Provisions come into force, the number of dispatched workers employed by
an employer exceeds 10% of the total number of its workers, the employer shall develop a plan for
10%
employment adjustment, and reduce the proportion to the required proportion within two years from the
effective date of these Provisions; however, the labor contracts and labor dispatch agreements that have
been concluded in accordance with law prior to the issuance of the Decision of the Standing Committee of
the National People's Congress on Amending the Labor Contract Law of the People's Republic of China
and will not expire within two years after the effective date of these Provisions may continue to be
performed in accordance with law until expiration.
The employer shall submit its plan for employment adjustment to the local administrative department of
human resources and social security for recordation.
No employers may employ new dispatched workers before they have reduced the number of dispatched
workers who are employed before the effective date of these Provisions to the required proportion.
Article 29 These Provisions shall come into force on March 1, 2014.
CLI.4.217807(EN)
2014
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