New Regulations On Temporary Employees ("Labor Dispatch")

This Client Alert is a follow-up to the Alert dated February 25, 2014. It contains the third and final set of compliance tips regarding the Interim Regulation on Labor Dispatch ("Regulation"), which came into effect on March 1, 2014.

This article focuses on the following issues:

1. Return of Dispatched Employees

According to the Labor Contract Law of the People's Republic of China ("Labor Contract Law"), enterprises receiving labor dispatch ("Employers") are allowed to return dispatched employees to the staffing agency in certain circumstances, such as an employee's material violation of the Employer's rules and regulations. Based on the existing provisions of the Labor Contract Law, the Regulation contains four specific circumstances in which dispatched employees can be returned. These circumstances are where: