Section 2

Labor Dispatch

Article 57 A labor-dispatching unit shall be established in accordance with the relevant provisions in the Companies Law, and its registered capital shall be not less than RMB 500,000 yuan.

Article 58 For the purposes of this Law, a labor-dispatching unit is an employing unit which performs the obligation of an employing unit to the workers. In the labor contract concluded between the labor-dispatching unit and the workers to be dispatched shall, in addition to the terms specified in Article 17 of this Law, be specified such terms as the units to which the workers are to be dispatched, the period of dispatch and the specific jobs.

The labor-dispatching unit shall conclude with the workers to be dispatched a fixed-term labor contract for a period of not less than two years and shall pay labor remuneration on a monthly basis. During the intervals when there is no work to do, the labor-dispatching unit shall pay labor remuneration on a monthly basis at the minimum wage rate prescribed by the people’s government of the place where the workers are working.

Article 59 When dispatching workers, the labor-dispatching unit shall conclude an agreement on labor dispatch with the unit that receives the workers under the dispatch arrangement ( hereinafter referred to as the receiving unit). In the agreement on labor dispatch shall be stipulated the jobs dispatched to, the number of persons, the period for dispatch, the amounts and methods of payment of labor remuneration and social insurance premiums, and the liability for breach of the agreement.

An receiving unit shall decide with the labor-dispatching unit on the period of dispatch based on the actual need for jobs and shall not divide a continuous period of employment in order to conclude a number of short-term agreements.

Article 60 The labor-dispatching unit shall inform the workers to be dispatched of the content of the agreement on labor dispatch.

The labor-dispatching unit shall not pocket the labor remuneration that the receiving unit pays to the workers in accordance with the agreement on labor dispatch.

The labor-dispatching unit and the receiving unit may not charge any fees from the workers dispatched.

Article 61 If a labor-dispatching unit dispatches workers to a receiving unit located in another place, the labor remuneration and working conditions to be enjoyed by the workers dispatched shall be provided in conformity with the rates and standards of the place where the receiving unit is located.

Article 62 The receiving unit shall perform the following obligations:

(1) to apply the labor standards of the State and provide the necessary working conditions and occupational protection;

(2) to inform the dispatched workers of the job requirements and labor remuneration;

(3) to give overtime pay and performance bonuses and provide welfare benefits related to specific posts;

(4) to provide the dispatched workers training that is necessitated by the job they are on; and

(5) to apply a regular wage adjustment mechanism in case of continued employment.

The receiving unit may not re-dispatch the workers to another employing units.

Article 63 Dispatched workers shall enjoy the right of equal pay for equal work as the workers of the receiving unit do. If a receiving unit has no workers holding the same kind of posts, labor remuneration shall be determined in light of that paid to the workers holding the same or similar posts at the place where the receiving unit is located.

Article 64 The dispatched workers shall have the right, in accordance with law, to join the trade union of the labor-dispatching unit or the receiving unit or to organize a trade union, in order to protect their own legitimate rights and interests.

Article 65 Dispatched workers may have their labor contracts with the labor-dispatching unit revoked pursuant to the provisions in Article 36 or 38 of this Law.

If a dispatched worker is in any of the circumstances specified in Article 39 and Subparagraph (1) or (2) of Article 40 of this Law, the receiving unit may send him back to the labor-dispatching unit, which may have the labor contract with him revoked in accordance with the relevant provisions of this Law.

Article 66 Workers are dispatched generally for temporary, auxiliary or substitute jobs.

Article 67 No employing unit may establish labor-dispatching units to dispatch workers to its own unit or to its subordinate units.