The deadline for ensuring that no more than 10% of your workforce in China is hired as dispatch labour is March 2016. Have you taken steps to ensure compliance?

The New Rules

We have previous  written about the changes to China’s dispatch labour laws. You can find those articles here, http://hsfnotes.com/employment/2014/02/20/china-new-labour-dispatch-regulations/, and here, http://hsfnotes.com/employment/2014/08/07/china-labour-dispatch-implementing-rules-issued-in-shanghai/.

The key changes are that:

  1. workers can be dispatched only for ‘temporary, auxiliary or substitute positions’. Temporary positions cannot be for  longer than six months; auxiliary positions are those that support the main business line; and substitute positions are for covering employees on vacations or study leave;
  2. an equal pay for equal work rule applies; that is, the same remuneration standard should apply to both dispatched employees and directly hired employees; and
  3. no more than 10% of the workforce can be hired as dispatch labourers.

The 10% Rule – how we can help

Employers have been granted a grace period until 1st March 2016 to reduce their reliance on dispatch workers to 10% of their workforce. As that deadline approaches, employers should:

  1. review their employee populations and ensure that all dispatch workers meet the relevant criteria;
  2. formulate a plan for reducing reliance on dispatch workers by the 2016 deadline;
  3. comply with applicable local rules in relation to notifying the labour bureaus of the intended reduction plans; and
  4. consider whether dispatch workers should be converted into permanent employees.