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China Insight - Employment & Pensions

Newly Amended PRC Labor Contract Law Imposing Stricter Control over the Use of Seconded Employees


After a half year of public discussion, a decision on the amendment to the PRC Labor Contract Law was made by the Standing Committee of the PRC National People’s Congress on 28 December 2012. The newly amended PRC Labor Contract Law (“Amended PRC Labor Contract Law”) will come into effect on 1 July 2013.

In the past, many Chinese companies did not hire employees by themselves but used a large number of employees who were hired by a labor agency and then seconded to work for the companies. This kind of special employment has caused a number of problems in recent years. For example, many seconded employees did not get pay commensurate with their work. Also health and safety rights of seconded employees were not always well protected. The aim of the Amended PRC Labor Contract Law is to change such situation in China.

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Jeanette Yu
Jeanette Yu