Shanghai Clarifies Labour Dispatch Rules

To provide guidance on the application of labour dispatch related rules, on 31 December 2014, the Shanghai Municipal Human Resources and Social Insurance Bureau and Shanghai Superior People's Court jointly issued the Meeting Minutes on Application of Law on Labour Dispatch ("Meeting Minutes").

No impact on existing employment if limitations are breached

Labour dispatch is highly restricted by law. It only applies to temporary, auxiliary and substitutable positions. The maximum dispatched workforce is capped at 10% of the total headcount of the labour accepting entity. In cases where these statutory limits are breached, the Meeting Minutes specify that the non-compliance will not impact