What does labor dispatch mean?

Labor dispatch refers to a form of employment in which the dispatching unit and the employing unit agree that the dispatching unit will send workers to the employing unit to accept work arrangements, and the employing unit will pay the service fee to the dispatching unit. The dispatching unit shall sign a dispatch agreement with the employing unit and sign a fixed-term labor contract with the laborer for more than two years.

legal ground

Article 58 of People's Republic of China (PRC) Labor Contract Law

The labor dispatch unit is the employing unit referred to in this Law and shall fulfill the obligations of the employing unit to the laborers. The labor contract concluded between the labor dispatch unit and the dispatched worker shall not only specify the matters specified in Article 17 of this Law, but also specify the employing unit, dispatch period and post of the dispatched worker.

The labor dispatch unit shall conclude a fixed-term labor contract with the dispatched workers for more than two years, and pay the labor remuneration monthly; During the period when the dispatched workers are not working, the labor dispatch unit shall pay the labor remuneration monthly according to the minimum wage standard stipulated by the local people's government.

Article 59

The labor dispatch unit shall conclude a labor dispatch agreement with the unit that accepts the labor dispatch (hereinafter referred to as the employing unit). The labor dispatch agreement shall stipulate the number of dispatched posts and personnel, the dispatch period, the amount and payment method of labor remuneration and social insurance premiums, and the responsibility for violating the agreement.