Regulations taking effect in China this month will put further pressure on companies’ labour costs, employment lawyers warn, as the government imposes strict limits on the use of workers hired via outside agencies.
Many companies have turned to “agency” or “labour dispatch” employees to escape the higher costs associated with China’s 2008 Labour Contract Law.
Such workers are technically employed by an agency that seconds them to another company. The state-sanctioned All China Federation of Trade Unions has estimated that there are 60m agency workers, making up about 8 per cent of China’s active labour force.
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