International
Mar. 14, 2013
China restricts popular employment model used by many US companies
Under labor dispatch, a company seeking to retain staff in China signs a contract with an authorized labor dispatch agency that in turn hires and seconds or dispatches the staff to the company's office. By Allan Marson
Many American companies operating in China use local staff provided to them under secondment arrangements (called "labor dispatch") by local labor dispatch agencies. The earliest agency was Foreign Enterprise Human Recourses Co., or FESCO, a name still familiar to most foreign companies in China. However, in view of recent amendments to the Economic Contract Law, the use of employees provided by FESCO and other agencies is likely to be s...
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