• +86-021-56880580
  • diaozhan@jianmozhuce.cn


 What is the business scope of labor dispatch company in China?
In recent years, labor dispatching companies emerge in an endless stream. More and more people choose to register a company in China. But the concept of labor dispatching company seems to be a little unfamiliar. In fact, labor dispatching companies in daily life is very common. 
What  is the latest labor dispatch company business scope?
The business scope of labor dispatching company includes labor dispatching, labor security agency, entrustment recruitment, vocational training, talent network operation, headhunting service, batch labor placement, career guidance and management consulting.
To operate the dispatch business of labor service, one shall apply to the labor administrative department for administrative license according to law; If the license is granted, the corresponding company registration shall be handled according to law. Without permission, no unit or individual may engage in labor dispatch business. At the same time, the threshold of operating labor dispatching companies is also correspondingly raised, its registered capital from the current 500,000 yuan to 2 million yuan.
Principles of labor dispatching companies
Four basic principles of operation and service of labor dispatching companies:
1. Employee leasing
The essence of labor dispatch is employee lease, and the word "dispatch" is not applicable to explain the legal relationship and business characteristics of labor dispatch. However, the word "lease" can summarize all the business characteristics of labor dispatch and reasonably interpret the complicated tripartite legal relationship of labor dispatch.
Leasing, like employment, is better suited to explaining the legal relationship between labor and the workplace.
Labor outsourcing cooperation characterized by production line contracting is not labor dispatch because there is no leasing relationship and it is not appropriate to sign labor dispatch contract.
Equal pay for equal work
The current legal system stipulates that labor dispatching units should implement the system of equal pay for equal work, but the person in charge of relevant departments and bureaus of the Ministry of Human Resources and Social Security did express that although labor dispatching workers enjoy the right of equal pay for equal work with workers of the employing units, equal pay for equal work does not include welfare and social insurance.
Equal pay for equal work can be simply understood as, the same position, the same level of employees, should implement the same wage standard. However, it is easy to be alienated as a countermeasure to equal pay for equal work.
3. Refuse to advance payment
The current legal system specifies that in the tripartite legal relationship of labor dispatching, the employing unit shall actually bear the wages and social insurance costs of the dispatched employees. This is the legal basis of the principle that the dispatching company does not advance payment, that is to say, the dispatching company does not advance payment of the wages and social insurance costs of the dispatched employees.
Once the dispatching company can not adhere to the principle, pay the expenses mentioned above for the employer, which means imperceptibly greatly increase their own business risks.
4. Benefit attribution
"Tort liability law" stipulates: "if the dispatched employee causes damage to others due to the performance of work tasks, the accepting unit shall bear tort liability; If the labor dispatching unit is at fault, it shall bear the corresponding supplementary liability."
"Who works, who benefits" is a common sense, "who benefits, who bears the responsibility" is the basic principle of equal interests and obligations.
Once the employee is dispatched, the part of compensation for injury insurance should be assumed by the real beneficiary.
Benefits of labor dispatch to employers
Labor dispatching is especially welcomed by foreign-funded enterprises, competitive enterprises and large state-owned enterprises because of the following factors:
1. Help to reduce recruitment costs. Through labor dispatch and input of employees, the recruitment work can be completely completed by the labor company, or most of the work can be completed by the labor company, which can reduce a lot of recruitment expenses.
2. Help to reduce training cost. Through dispatching and importing employees, the employer can work with the labor service company to complete the pre-job training for new employees, and the labor service company is willing to cooperate with this work. In this work, the employer can complete the training work and meet the work requirements with less manpower and financial resources.
3. Help to reduce salary expenses. The low cost of labor dispatching input employees is often used as an incentive system to reflect. Dispatched employees (also known as contract employees) who work hard or perform well can be transferred to regular employees (employees who sign labor contracts directly with the employer), which is also the trend of national policy. However, there are indeed differences in salary and welfare between contract employees and regular employees in actual employment. Contract employees generally does not enjoy the benefits and rewards of regular salary, year-end double salary and statutory benefits.
4, is a means of legal tax avoidance.
5, to avoid the risk of layoffs (especially the mass layoffs) unit of choose and employ persons, if unit of choose and employ persons in the fierce market competition of human resources due to various reasons to use the number of cuts, if there are employees must cause labor relations labor relations of lifting, the lifting on the program or in terms of economic compensation has certain legal mandatory provisions, for the labor dispatching personnel, unit of choose and employ persons can be used to improve management fee or the two sides agreed to pay a certain compensation as conditions and services company in the labor dispatch agreement agreed by the labor service company to undertake by the layoffs and the most economic liability to pay compensation, So as to transfer the risk.
6. It is beneficial to avoid or prevent other labor protection risks. Due to without fault behavior of the laborer labor contract removes or special labor relations (e.g., because no job, not because of work, etc.) the causes of disease could lead to a negative impact on other employees, specialized labor dispatching institutions (labor) professional and familiar with labor law, can effectively help get rid of the plight of unit of choose and employ persons, or risks before they occur due to the corresponding measures to prevent and resolve.
7. It is conducive to the change of the functions of the human resources department of the employer, and professional labor security supervision is conducive to the effective use of human resources of the employer. Labor service companies can play the role of supervising employers from the perspective of their own economic interests or from the perspective of the cognition of professional labor security policies. The employee of professional labor service company often has very good professional foundation and the background that is engaged in labor safeguard work for many years, it is unit of choose and employ persons place is inferior. Therefore, from the standardization and perfection of the employing unit's employing system, especially the labor relations of human resources work labor service company can play the role of consultant and guidance; More can mobilize the enthusiasm of employees, the use of human units to focus on the development of human resources, on improving the core competitiveness of the enterprise, so as to achieve the effective use of human resources and reasonable allocation.
8. It is beneficial to enhance the flexibility of employing units and the freedom of labor law protection.
According to the provisions of the law can be known, labor dispatch company business scope engaged in labor dispatch, labor security agency, commissioned recruitment, vocational training, personnel network operation and other aspects of the content.