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China Insight - Employment & Pensions

PRC Government Attempts to Impose Stricter Control over Secondment of Employees

01/07/2012

Since the PRC Labor Contract Law came into effect on 1 January 2008, many Chinese companies have used a large number of seconded employees i.e. employees that are hired by a labor agency and then seconded to work for the companies. This has been in order to circumvent the requirements of the law on signing indefinite employment contracts with employees under certain conditions and to make employment more flexible. However, 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.

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China Insight - Employment & Pensions
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Portrait ofJeanette Yu
Jeanette Yu
Partner
Shanghai
Jeanette Yu