Government to regulate labour dispatch workers

However, the availability and ease of employing these workers is set to change as policy makers are discussing draft Regulations from the National People's Congress that are expected to lay out clear definitions of what constitutes temporary use of labour dispatch workers, penalties for failure to comply with wages and length of employment.

“Companies should closely watch the legislative activities, review internal labour dispatch workers' policy, restrict the use of dispatch workers on non-temporary, auxiliary or substitute positions and consider outsourcing to cover the positions that labour dispatch workers are currently working on,” said Gordon Feng, chair of Paul Hastings's Shanghai labour and employment practice.

Labour dispatch workers have played a key role in China's economic boom. Multinationals and domestic companies both utilise temporary workers, who for many industries are the driving force behind their success.