China Insight - Employment & Pensions
What companies using seconded employees in China should do now
Last year, the PRC Labor Contract Law was amended, providing for stricter control of the use of seconded employees. The amendments became effective on 1 July 2013 (Amended LCL). For details, please see our newsletter of 14 January 2013. However, since the Amended LCL did not expressly specify a limitation on the number of seconded employees, many companies did not take any action, instead waiting for the announcement of detailed regulations by the State Council.
On 24 January 2014, the Interim Regulations on Labor Secondment (Interim Regulations) were issued by the Ministry of Human Resources and Social Security. They came into effect on 1 March 2014. The Interim Regulations provide more detailed requirements on the use of seconded employees and put forward a schedule for ratification. It is high time now for companies using seconded employees in China to re-evaluate their employment methods and make adjustments if necessary.
Please access the Newsletter to read more.