Deadline For Reducing Dispatch Employees To 10 Percent

In 2014, the Ministry of Human Resources and Social Security issued the Interim Provisions on Labor Dispatching ("Provisions"), which required that dispatch employees be limited to temporary, auxiliary, or substitute positions and comprise no more than 10 percent of the total number of employees of the employer. The Provisions provided for a two-year grace period to comply with the 10 percent limitation, which expired on February 29, 2016. Several cities and provinces have issued notices in the past few months to reiterate the deadline, including Sichuan, Suzhou, and Guangdong, and it is expected that local labor authorities will carry out more frequent inspections to ensure compliance with the limitation during the first half of 2016.