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China – Labour Dispatch Regulations.

8 April 2014

 

Legal News & Analysis – Asia Pacific – China – Labour & Employment

 

The 10% Rule

 
On 1st March 2014, the Provisional Regulations on Labour Dispatch took effect, further clipping employers’ wings in their use of dispatch (agency) labour. The new regulations restrict the number of dispatch workers to no more than 10% of the employee population. A grace period of two years has been granted to employers who have previously used dispatch labour; employers should use this period to consider how to the number of dispatch workers can be reduced to ensure compliance.

 
Let’s Talk About It

 
Employers may only hire dispatch labourers if they fall within one of three categories: auxiliary, temporary and substitute workers. Under the new Regulations, before a role can be defined as being ‘auxiliary’, an employee consultation process will now need to be followed.

 
Equal Pay For Equal Work

 
Employers must also ensure that any benefits offered to directly hired employees are the same as those afforded to dispatch labourers; the Regulations prevent discrimination against dispatch workers. As it becomes increasingly difficult to satisfy the strict dispatch labour rules, employers will need to look again at their labour strategies, and consider whether it possible to directly hire for particular roles.

 

herbert smith Freehills

 

For further information, please contact:

 

Fatim Jumabhoy, Herbert Smith Freehills

[email protected]

 

Homegrown Labour & Employment Law Firms in China

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