Can foreign-funded enterprises directly recruit personnel in China? Does it have to be dispatched through labor service?

The new Labor Contract Law stipulates that enterprises have the right to decide the time, conditions, methods and quantity of recruiting employees.

The so-called labor dispatch is a service form in which the labor dispatch unit dispatches its employees to the unit receiving labor services (referred to as "employing unit") to provide labor services. In labor dispatch, the labor dispatch unit shall conclude a labor contract with employees and establish labor relations with them. The employer only accepts the services provided by the labor dispatch unit, and has a service contract relationship with the labor dispatch unit, but has no labor relationship with the personnel providing the services.

The new Labor Contract Law puts forward stricter measures to protect the rights and interests of workers. For example, the employer must sign a labor contract with the employee, or pay double wages; Employers need to pay social insurance premiums for workers, otherwise workers can resign at any time and ask employers to pay economic compensation.

It is not uncommon for foreign-funded enterprises to use labor dispatch workers on a large scale. Many foreign-funded enterprises even use more dispatched workers than regular workers, but their wages are far lower than regular workers. In view of the abuse of labor dispatch workers by many enterprises, the Labor Contract Law has made strict provisions on labor dispatch, requiring employers to pay the dispatched workers equal pay for equal work, and stipulating that labor dispatch is generally only implemented in temporary, auxiliary or alternative jobs.