The Chinese legal framework is always in development, but no
sector has received so much attention lately as that of dispatch
services. The business of employing people and then dispatching
them to another company for work has come under severe scrutiny,
with a huge impact not only on foreign-invested companies that are
engaging in this business, but also on their customers:
subsidiaries of international companies who for one reason or
another hire at least part of their workforce through dispatch
service providers including FESCO (Foreign Enterprises Service
Corporation) and CIIC (China International Intellectech Corp).
Rules for Labor Dispatch Service Providers
In late 2012, the PRC Labor Contract Law was amended to
set new requirements on companies providing dispatch services. The
amendments also established that dispatch could only be used for
temporary, substitute or auxiliary positions, and disclosed that
the State human resources administration would
