Labor dispatch providers are becoming more and more popular among businesses as a way to save on labor costs and accelerate project timelines. However, it should be noted that labor dispatch is only meant to be used as a temporary, auxiliary, or alternative measure – it cannot be used as a primary mode of employment.
When looking for a labor dispatch provider, it is important to pay attention to certain aspects in order to ensure that you are choosing a reliable and compliant provider. Some things you may want to consider include the company’s track record, licensing, insurance coverage, risk management & management level.
Licensed for labor dispatch
Labor dispatch providers in China must apply for administrative licenses from the Chinese government. If approved, they must then register their businesses in accordance with the law. No one may operate a labor dispatch business without permission. An enterprise applying for a labor dispatch permit needs to meet the following 4 conditions:
- The registered capital of a labor dispatch company must be at least 2 million yuan
- Before operating, the company must issue a capital verification report to prove that it has the economic strength and capacity to conduct business.
- The company must have fixed business premises and facilities suitable for conducting business.
- Its labor dispatch management system must comply with all relevant laws and regulations, and be reasonable in terms of its implementation.
Ability to manage risk
Labor dispatching companies find and hire workers for other businesses, meaning they take on pats of the legal employment liabilities of the client. It is important to choose a labor dispatch company that is able to tolerate risk and provide solutions quickly, in order to save time for both parties. A good labor dispatch agency in China is well versed in the legal side of HR and can guide clients to avoid making any mistakes with dispatched employees. This negates the possibility of labor disputes. If labor disputes arise, they are best solved early through negotiations. If negotiations fail, arbitration through a court of law can finalize unsolved disputes.
Experience and management of the labor dispatch company
At HROne, we have over 17 years of experience in the human resources industry. We’re qualified to provide labor dispatch services, and our professional legal team has a deep understanding of national and local employment policies. We can help your company reduce compliance risks with customized employment outsourcing solutions that are tailored to your needs. Our on-demand solutions make the employment process more flexible and efficient for enterprises.