Many Enterprises Collectively Evade The Labor Contract Law By Means Of Labor Dispatch.

Why do legislators think that the labor dispatch that has made enough stringent regulations will become the export or even the sole export of many enterprises to avoid the responsibility of the new law collectively?

Labor dispatching was accidentally favored.

Many large state-owned listed companies in aviation, banking, petroleum, telecommunications and other industries have raided some old employees into labor dispatch before the end of the year.

The labor dispatch, which originally thought that the new labor contract law would be neglected, was unexpectedly flourished because of this law.

"During the legislative process, many people told me that in accordance with the strict regulations of the present law, the labor dispatch company will not die, and 1/2 will die 1/3.

So we think the norm is enough. "

"We seem to be too optimistic now," an official of the law enforcement Commission of the National People's Congress, who participated in the new law, said to the southern weekend.

It is indeed too optimistic.

On the eve of the implementation of the new law, the labor dispatch company has not failed, but it has been very hot. Not only has it increased rapidly, but even overseas funds are eager to try.

"An American company is going to invest large sums of money for us."

In December 7th, Xu Li, chairman of Shanghai Zhongda Human Resource Management Co., Ltd. excitedly said.

His company has provided a large number of manufacturing workers for the industrial cities in the Yangtze River Delta through "labor dispatch".

China currently has nearly 3 Human Resources Inc engaged in labor dispatch.

One of them has recently won the largest single overseas investment in the industry: 100 million yuan, Xu said.

The boom of labor dispatching companies means that there are more employees who can sign non fixed term contracts with enterprises according to the new law. They will no longer be employees of the enterprises they serve, but only those who are sent to the enterprises by labor companies.

That is to say, they will be employees of labor dispatch companies.

In the legislation of labor contract law, the employment form of labor dispatch has become a common practice in China.

Data show that there are about 25 million labor dispatched workers in public enterprises, enterprises and institutions in the whole country. Some large state-owned enterprises and even 1/3-2/3 employees belong to labor dispatch. Before the big retreat this summer, CCTV was the largest institution of labor dispatch in China. Its dispatched staff was at least 5000 people, two times more than the official staffing staff.

Xie Zengyi, an associate professor of the Chinese Academy of Social Sciences, who has studied the US labor dispatching system in the United States for a year, told the newspaper that with the dispatch of labor services, the company can only pay wages, and theoretically, other responsibilities including social security, dismissal compensation and so on can all be pferred to labor companies.

It is precisely because of the vigilance of this kind of employment which goes to chaos. The labor contract law has only one section, specifically standardizing and restricting labor dispatch.

Unexpectedly, it backfired.

Nowadays, many large state-owned listed companies including aviation, banking, petroleum, telecommunications and other industries have raided some employees into labor dispatch before the end of the year.

Some enterprises even let service companies bid publicly, in order to minimize the cost and responsibility of enterprises.

It is the demand for labor dispatch that has greatly increased, and the service companies have prospered.

"I heard that many people want to be a labor dispatching company now."

Officials of the National People's Congress law enforcement Committee said.

However, the cost of win-win for enterprises and labor companies is the injury of large numbers of old workers' emotions and legitimate rights and interests.

In November 8th, a bank agent in Sichuan Deyang branch of the Bank of China, who worked for more than 10 years without any prior notice, was threatened to automatically terminate the labor contract on the spot and Deyang branch, and signed a contract with another labor company that they knew nothing about.

"In the past more than 10 years, I have worked hard and worked hard, and I have been rated as an advanced worker and expert at many times because of my excellent work.

The branch has promised many times that a contract employee can turn into a full-time employee after a certain working life, but it is only a dream that has been impossible for many years. "

The agent, who asked not to be named, wrote to the newspaper, "I thought that after the new law was implemented, the conditions for labor and employment would be improved in the future, and no longer needed to work in a lower level than the formal employees, but I never expected that it would be even more tragic."

According to her introduction, the staff of the China Bank of China to dissolve the labor contract has 2/3 for more than ten years in the central bank.

The government of the labor service company?

At present, there are 26158 labor dispatch companies in China, and nearly 70% of them are handled or approved by the labor and social security department.

In August of this year, after carefully studying the new labor contract law, Guo Xueming, who had 16 years' experience in enterprise management, once again thought of labor dispatch.

Guo runs an export trade company with more than 200 people in Dalian.

In his view, although the labor dispatch has reduced the sense of belonging of the staff and made the work more temporary, compared with other stringent regulations of the new law, labor dispatching is still a good way to reduce the cost of employment and improve the flexibility of the employment mechanism.

But he has not made up his mind yet.

Guo Xueming tried out "labor dispatch" two years ago.

At that time, the labor bureau often checked the enterprises, mainly looking at whether the enterprises were paying for their old age, work-related injuries and medical insurance for their employees.

Often found that the enterprise did not pay, he found that the labor department often said that a labor dispatch company sent to you, a fine is avoided.

Later, Guo found that most of these labor companies were related to the labor department.

In addition, Guo Xueming also found that if enterprises pay old-age insurance, and can not be included in the cost of the company, the tax revenue is very high.

But as long as these labor companies through the labor department can be included in the cost, the income tax paid by enterprises will drop.

After 3% to 5% of the workers' wages were paid for the management fees of the labor companies, Guo Xueming began to cooperate with the labor dispatching companies under the labor department for 2 years.

Until last year, through the new policy of Dalian, enterprises could only calculate the cost of work-related injuries and medical insurance for their employees.

Many labor companies are closely related to local labor departments. This is not a special case in Dalian.

A staff member of a Shandong municipal labor dispatching company also told our reporter that their company is a labor service company under the Municipal Social Security Bureau, and there are "guarantees" in all aspects, and the dispatching customers of their companies include major banks, public institutions, provincial enterprises and listed companies.

Data show that at present, there are 26158 labor dispatch companies in China, of which 18010 are handled or approved by the labor and social security department, close to 70%.

After the adoption of the new law, more labor dispatch companies under the labor department came into being.

A manager of Sinopec Shandong Weifang Petroleum Branch told reporters that until this year, there were labor intermediary companies in Weifang.

And the labor company that cooperated with them to turn formal workers into labor dispatch is the subordinate enterprise of the Municipal Social Security Bureau.

The relevant legal design is not perfect.

Why do legislators think that the labor dispatch that has made enough stringent regulations will become the export of many enterprises to avoid the responsibility of the new law collectively?

Many people think that the relevant legal design is not perfect.

Xu Zhuang of Shanghai Zhongda Human Resources Management Co., Ltd. told reporters that when many enterprises and labor companies negotiate, they believe that labor relations should be paid by labor companies in labor companies.

However, there are two other thorny problems after the wages are delivered by the labor companies. First, what should we do if the registered capital is not less than 500 thousand of the labor companies' absconding?

Second, how should wages be deducted by labor companies?

At present, most enterprises have asked the labor companies to retain certain deposits in the enterprise, just in case.

Last Tuesday, Xie Zengyi, in a speech on the labor contract law of the Institute of law of the Chinese Academy of Social Sciences, put forward his own question. Why does the law do not directly stipulate that the employing units should directly pay wages, overtime and other benefits to the dispatched workers?

In addition, the new law stipulates that if a dispatched worker fails to work within a fixed period of two years after the labor dispatching unit has signed the contract, the dispatched unit shall pay the monthly wage according to the minimum wage stipulated by the local people's government.

However, the implementation of this provision is extremely difficult, because labor companies send labor services to earn a monthly fee of tens of dollars per person, which is much lower than the minimum wage standard.

For example, Liu Qilan, deputy director of the Jiangxi Provincial Department of labor and social security, said at a labor dispatch conference in mid October this year that the Human Resources Inc in Jiangxi now has a management fee of three years per person, and it is not enough to pay the local minimum wage for one month.

Xiao Weidong, a lawyer of the Beijing people's law firm, who has long been acting as a labor case, said that in the past, when there was no labor dispatch, the enterprises and workers eventually came to the dispute, and now they were enterprises, laborers and labor companies.

"If we can not handle the relationship between the three parties, there will be more and more disputes in the future."

He said without worry.

In fact, the new law stipulates that labor dispatching is usually implemented in temporary, auxiliary or alternative jobs. The original intention of the legislative designer is to avoid the shock of large-scale labor dispatch.

At present, the labor dispatch whirlwind that has swept the large state-owned enterprises to private enterprises has already surpassed this scope.

The bigger background is that, with the increasing supply of labor, the workers who are in the negotiations may also make low demands, or even choose to circumvent the law themselves.

As a result, Xiao Weidong pointed out that even with the implementation of the new law, with the increase of costs, it is possible to bring labor companies and employment units to collusion to lower wages.

For example, if the management fee increases, the enterprises will lower wages as far as possible, and the labor company will save cost as far as possible from the perspective of social security.

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Provisions on labor dispatch in the labor contract law

The fifty-eighth labor dispatching units shall conclude a fixed term labor contract with the dispatched workers for more than two years, pay labor remuneration on a monthly basis, and the dispatched worker shall pay the remuneration to the labor dispatching unit monthly according to the minimum wage stipulated by the local people's Government during the period of no work.

The fifty-ninth employment units shall determine the time limit for dispatch according to the actual needs of the work force, and shall not divide the continuous employment period into several short-term labor dispatch agreements.

The sixty-second employment units shall perform the following obligations: (three) pay overtime and performance bonuses, and provide welfare benefits related to their jobs; (five) implement a normal wage adjustment mechanism for continuous employment.

The sixty-third workers are entitled to equal pay for equal work with the workers in the employing unit.

If the employing unit does not have a similar post, it shall be determined according to the remuneration of the laborers in the same or similar posts.

The sixty-sixth labor dispatch is usually implemented in temporary, auxiliary or alternative jobs.

Case: Sinopec's labor dispatch storm