November 2012: Anticipated changes to PRC Employment Contract Law this month will affect labour dispatch companies, if approved. Changes are likely to be retroactive and will, therefore, impact all existing, as well as new, labour dispatch companies.

This is the first in our 2-part series addressing the changes to the PRC’s laws regarding labour dispatch companies. In this issue we consider the national-level legal changes to the Employment Contract Law and how this impacts labour dispatch companies. In part 2, we consider the regulation changes at regional level regarding labour dispatch in Chongqing, Shanghai, Tianjin, Jilin and Guangdong, as well as the practical issues that have been left unsolved by the draft amendment.

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