Following the Provisional Regulations on Labour Dispatch, issued by the Ministry of Human Resources and Social Security, which took effect on 1 March 2014, a number of cities and provinces have issued local measures to administer the use of labour dispatch.
The labour dispatch regulations require companies that exceed the maximum cap on the use of dispatched employees – 10% of the total workforce – to reduce their use of dispatched workers to below the legal threshold within two years (i.e. by 28 February 2016), and to file a “workforce adjustment plan” with the local labour authorities.
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Business Law Digest is compiled with the assistance of Baker & McKenzie. Readers should not act on this information without seeking professional legal advice. You can contact Baker & McKenzie by e-mail at: Zhang Danian (Shanghai) danian.zhang@bakermckenzie.com
