2 May 2014
Under the Interim Provisions on Labour Dispatch (see our legal update, "China Issues Interim Provisions on Labour Dispatch", of 11 February 2014), if the number of dispatched workers engaged by a PRC employer exceeds 10 percent of its total workforce, then the employer must file a plan on how it proposes to reduce that proportion to 10 percent or less with the local labour authority within two years after the effective date of the Interim Provisions (i.e., before 1 March 2016). The Beijing Labour Authority has now issued an administrative order requiring each applicable Beijing employer to file its plan by 31 August 2014.
The relevant form (in Chinese) and filing instructions can be downloaded from the Beijing Labour Authority website. The filing must be made in writing.
The details required to be provided in the plan include the following:
- The total number of employees, the number of workers who have signed written employment contracts, the number of dispatched workers and the proportion of dispatched workers to the total number of employees;
- The number of (a) local urban dispatched workers, (b) local rural dispatched workers, (c) dispatched workers from other cities, and (d) dispatched workers from other rural areas;
- The number of dispatched workers holding "temporary, auxiliary or replaceable" positions. (There should be agreement with a trade union or work representative through consultation on the "auxiliary" positions);
- The name of the labour dispatch agency and the duration of the labour dispatch agreement entered into between the employer and the labour dispatch agency;
- A two-year plan for managing the number of dispatched workers; and
- Details of any anticipated potential problems and other situations that may arise during the period of the plan.
The administrative order does not say what the legal consequence may be if an employer fails to comply with the above requirements. However, prudent employers should take steps to comply with the requirements of the administrative order of the Beijing Labour Authority.