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Corporate Service - China

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Regulations on Labor Dispatch

Answer
Recently, eleme rider died suddenly on the way to deliver meals, and eleme company at first said that this rider is not their employee and the daily delivery fee deducted from the rider RMB 3.00, called its purchase of commercial insurance, the final actual purchase of insurance premiums only RMB 1.06 news sent eleme company to the limelight, but also let everyone again focus on the issue of labor relations. In order to save labor costs, more and more companies are using the labor dispatch method of employment. What exactly are the regulations regarding labor dispatch?

Q: Is it possible to use the labor dispatch method for all positions in an enterprise?
A: According to the Interim Regulations on Labor Dispatch, only temporary, auxiliary or alternative jobs can be dispatched.

Q:
What are the specific definitions of temporary, auxiliary and alternative?
A:
Temporary jobs are jobs that do not last more than six months; Auxiliary jobs are non-main business jobs that provide services for the main business jobs; Alternative jobs are jobs that can be replaced by other workers during a certain period when the workers of the employing unit are unable to work due to off-the-job studies, vacations, etc.

Q:
Is there a limit to the number of labor dispatch workers that can be used by an enterprise?
A:
The number of dispatched workers used by an enterprise shall not exceed 10% of the total number of workers employed.

Q:
Can a labor dispatcher agree on a probationary period with a worker?
A:
The labor dispatcher may agree on a probationary period with the dispatched worker in accordance with the law. A labor dispatcher can only agree to a probationary period once with the same dispatched worker.

Q:
What is the contract term of the labor dispatch contract?
A:
The labor dispatching unit shall enter into a fixed-term written labor contract with the dispatched workers for more than 2 years in accordance with the law.

Q:
If a labor dispatcher dispatches across regions, in which region should the worker's social insurance be paid?
A:
If a labor dispatching unit dispatches workers across regions, it shall participate in social insurance for the dispatched workers in the location of the employing unit and pay social insurance premiums in accordance with the regulations of the location of the employing unit.

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