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03.2024 Life Guide

Don't forget three things when hiring dispatched manpower

Far Eastern New Century Corporation / Tong Weizhen
4033001        In order to cope with constantly changing market demands and cost pressures, traditional employment models are gradually being replaced by atypical employment patterns. Among them, "dispatched employees" can break free from the constraints of employment relationships and provide greater flexibility for enterprises, so they are widely adopted by employers. However, since the revision of the Labor Standards Act regarding the dispatch employment model, companies employing dispatched employees must bear more legal responsibilities. This issue of the Legal Column takes you through the rights of dispatched employees from the perspective of employers.

        1、 Prohibit "transfer and hanging behavior"

                According to Article 17-1 of the revised Labor Standards Law in June 2019, units that utilize human resources shall not conduct interviews or other designated dispatched labor activities before signing labor contracts with dispatch companies and dispatched employees. In other words, before hiring dispatched employees, companies are not allowed to interview or designate personnel, in order to prohibit companies from dispatching workers through "transfer and hanging" methods.

        If the dispatching unit violates the above regulations and even accepts the labor services of the dispatched employees, the dispatched employees have the right to express their willingness to sign a labor contract in writing to the dispatching unit within 90 days; Within 10 days after receiving the employee's expression of intention, the dispatching unit has the obligation to negotiate and establish a labor contract to include the employee as a regular employee in the establishment.

        Taking dispatched employee Xiao Zhang as an example, even if the job vacancy and labor and health insurance are linked to dispatch company B, if the interviewer from company A needs to participate in the interview process, Xiao Zhang has the right to request in writing from company A to sign a labor contract within 90 days after reporting to work, and company A must also negotiate the labor contract with Xiao Zhang within 10 days after receiving it. If Company A fails to complete the negotiation within the deadline, both parties will automatically establish a labor contract from the 11th day, which will be based on the employment conditions of Xiaozhang in Dispatch Company B.

        2、 In principle, dispatch labor contracts shall not be signed once a year

        According to Article 9 (1) of the Labor Standards Law, labor contracts signed between dispatch companies and dispatched employees, unless they are temporary, short-term, seasonal or specific work, should be considered as indefinite contracts to avoid affecting the employment stability of dispatched employees due to annual fixed-term contracts.

        3、 The dispatching unit should jointly bear the "occupational disaster compensation and compensation responsibility"

        In the past, civil society organizations often raised many doubts about the insufficient protection of the rights and interests of dispatched employees. Especially when dispatched employees suffer from occupational disasters, although some dispatch companies bear the employer's responsibility for occupational disaster compensation and compensation, the dispatching unit does not have to bear any responsibility, which easily leads to the neglect of their occupational safety. Even after the employee suffers from occupational disasters, they often request to replace the employee. According to Article 63-1 of the current Labor Standards Law, the dispatching unit that actually uses dispatched employees must jointly bear the compensation and compensation responsibilities of the disaster stricken workers.

        In summary, enterprises should carefully examine the employment mechanism and operation process under the dispatch employment model to avoid violating the legal red line and being subject to penalties. (Source: Ministry of Labor)

        *Image source: freepik

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