Interim Provisions on Labor Dispatch

Interim Provisions on Labor Dispatch Order of the Ministry of Human Resources and Social Security (No. 22) The Interim Provisions on Labor Dispatch, as deliberated and adopted at the 21st executive meeting of the Ministry of Human Resources and Social Security on December 20, 2013, are hereby issued and shall come into force on March 1, 2014. Minister of the Ministry of Human Resources and Social Security: Yin Weimin January 24, 2014 Interim Provisions on Labor Dispatch Chapter I General Provisions 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. Chapter II Scope and Proportion of Employment 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 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. 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 fixed term of two years or more in accordance with law. Article 6 A labor dispatch entity may agree on a probation period with a dispatched worker in accordance with law. However, it may agree with the same dispatched worker only on one probation period. Article 7 A labor dispatch agreement shall specify: (1) the title and nature of the positions in which the dispatched workers are to be employed; (2) job location; (3) the number of the dispatched workers and the period of dispatch; (4) the amount and payment method of labor remuneration determined under the principles of “equal pay for equalwork”; (5) the amount and payment method of the social insurance premiums; (6) working hours,vacation and leave; (7) related benefits for the dispatched workers during work-related injury, birth-giving or illness; (8) work safety and hygiene as well as training; (9) economic compensation and other fees; (10) the term of the labor dispatch agreement; (11) the payment method and criteria for labor dispatch service fees; (12) liability for breach of the labor dispatch agreemen......