What To Know About China's Labor Dispatch Model Reform

Law360, New York (June 6, 2013, 2:51 PM EDT) -- On July 1, 2013, an amendment to the People's Republic of China Employment Contract Law aimed at further regulating the staffing business (the so-called “labor dispatch” model in the PRC) will take effect.

Under the labor dispatch model, a staffing agency hires and is the legal employer of a person (a dispatch employee or an agency worker) but leases that person to another entity (the user entity) to perform services. Because of the constant pressure to maintain a flexible workforce and control and reduce costs, and...
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