Legal basis: People's Republic of China (PRC) Labor Contract Law.
Article 66 Labor contract employment is the basic form of employment for Chinese enterprises. Labor dispatch is a supplementary form, which can only be implemented in temporary, auxiliary or alternative jobs.
Temporary work mentioned in the preceding paragraph refers to work with a working time of no more than six months; Auxiliary jobs refer to non-main jobs that provide services for main jobs. Alternative work refers to the work that can be replaced by other workers in a certain period of time when the employees of the employer are unable to work due to full-time study, vacation and other reasons. The employing unit shall strictly control the number of labor dispatch, and shall not exceed a certain proportion of its total employment, and the specific proportion shall be stipulated by the labor administrative department of the State Council.
Article 67 An employing unit may not set up its own labor dispatch unit. The employing unit shall not set up a labor dispatch unit to dispatch workers to the unit or its subordinate units.