Labor Dispatching

Labor dispatching refers to an employment form in which a labor dispatch agency signs the labor contract with the employee and then dispatches the employee to the employer. The employer pays a sum of service fee to the labor dispatching agency. Labor dispatching is also known as human resources dispatching, talent leasing and human resources loaning.

The labor dispatching is made between the employee to be dispatched and the receiving company (employer). The employer should pay service fee to the labor dispatching agency and the labor dispatching agency should pay the salary to the employee. Labor dispatching originated from the United States in the 20th century and later was spread to France, Germany and Japan. During the labor system reform of state-owned enterprises in the 1990s in China, labor dispatching derived to settle the laid-off workers in different regions and industries. The annual income is usually 20,000-30,000 yuan. Employees of labor dispatching are generally engaged in low-tech jobs, such as cleaner, guard, sales person and waiter or waitress. Once the employee is old or ill and cannot work, the dispatching agency will refuse to renew the labor contract after it is expired.