Human Resources Insights
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HASA Newsletter 201501 |
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Legislators review labor law revision on regulating outsourcing
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ute positions.
The draft stipulates employers should strictly control the number of outsourced workers, adding, "Outsourced workers should not surpass a certain proportion of the total workforce".
The proportion is to be decided by the labor authority under the State Council, China's cabinet, it says.
The draft also gives a clearer definition of subsidiary positions as "non-main posts that provide supportive services to main posts".
The draft would also require employment agencies to have at least 2 million yuan ($320,000) in registered capital, up from 1 million yuan now.
Outsourced workers have labor contracts with employment agencies. Agencies pay the workers' wages, provide outsourcing services to employers and charge employers commission and management fees.
State-owned enterprises and government-affiliated public institutions employ the greatest number of outsourced workers, according to the trade union report.
Wan Xi, a human resources officer with a State-owned construction design company in Chongqing, said out of nearly 500 employees in her company, about 30 percent are outsourced.
"A regular worker in an administrative position earns around 6,000 yuan a month, but an outsourced worker doing the same job only earns 2,000 yuan because they do not get a bonus," she said.
Lu Qi, 25, has been employed by an employment agency since 2009 and works at the Beijing branch of State-owned China Telecom.
"Of the workers hired by the company in 2009, more than half were outsourced," he said. "Although we outsourced employees have a chance of promotion, our wages are lower than regular workers doing the same jobs."
State-owned China National Petroleu
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