What's the difference between an internal labor contract and an outsourcing contract?

The contract signed with the company is a labor contract, and the outsourcing contract belongs to a dispatch contract. The differences between the two are as follows:

1, the signing object is different: the labor contract is signed by the employee directly with the employer. The labor dispatch contract is signed by the laborer and the dispatching company, and then the dispatching company issues it to the actual employer.

2. The signing period is different: the signing period of labor contracts is generally long, and a probation period needs to be established as required. Labor dispatch cannot be too long. Generally speaking, the labor dispatch unit is required to conclude a fixed-term labor contract with the dispatched workers for more than two years.

3. Different jobs: Labor contracts are generally paid directly by the company on a monthly basis. Labor dispatch usually means that the employer pays the wages to the dispatching unit, and then the dispatching unit pays the employees.

4. Different positions: the labor contract can be used for all positions of the employer; Dispatch contracts usually apply to auxiliary posts.

5. Different welfare benefits: the state implements a social insurance system for the retirement of labor contract workers. Retirement pension funds are paid by enterprises and employees who sign labor contracts. When the retirement pension is insufficient, the state gives appropriate subsidies. Once the dispatched workers are old and weak, their labor ability declines and the labor contract expires, the dispatching unit will refuse to renew it.

Benefits to employers

Labor dispatch is especially welcomed by foreign-funded enterprises, advantageous enterprises and large state-owned enterprises for the following reasons:

1, which is conducive to reducing recruitment costs. By introducing employees through labor dispatch, the recruitment work can be completely completed by the labor service company, or most of the work in the recruitment can be completed by the labor service company, which can reduce a lot of recruitment expenses.

2. It is beneficial to reduce the training cost. By introducing employees through labor dispatch, the employer can complete the pre-job training of new employees together with the labor service company, and the labor service company is willing to cooperate with this work, and in this work, the employer can complete the training with less human and financial resources to meet the post requirements.

3. It is conducive to reducing wage expenditure. The low salary of employees introduced through labor dispatch is often regarded as an incentive system. Dispatched employees who work hard or perform well (also called laborers) can be converted into regular employees (employees who directly sign labor contracts with employers).

This is also the trend of national policies, and there are indeed differences in wages and benefits between workers and regular employees in actual employment. Workers generally do not enjoy the benefits and rewards of regular employees except normal wages, year-end double pay and statutory benefits.

This is a means of legal tax avoidance.

5. It is conducive to avoiding the risk of layoffs (especially the large-scale layoffs of employers). Once employers reduce the use of human resources for various reasons in the fierce market competition, employees with labor relations will inevitably lead to the dissolution of labor relations. This kind of rescission has certain legal mandatory provisions in terms of procedures and economic compensation.

For the labor dispatch personnel, the employer can stipulate in the labor dispatch agreement with the labor service company that the labor service company will bear most of the economic compensation responsibilities caused by layoffs on the condition that the management fee is raised or the two parties agree to pay a certain amount of compensation, so as to achieve the purpose of transferring risks.

6, is conducive to avoid or prevent other labor protection risks. The labor contract or special labor relationship is dissolved due to the laborer's no-fault behavior (such as incompetence, non-work-related illness, etc.). ) may have a negative impact on other employees, and professional labor dispatch agencies (labor companies)

Professionalism and familiarity with labor law can effectively help employers get rid of the above difficulties, or risks can be resolved before they occur because of corresponding preventive measures.

7. It is conducive to the transformation of the functions of the human resources department of the employer, and professional labor security supervision is conducive to the effective use of human resources of the employer. Labor service companies can supervise employers from their own economic interests and professional awareness of labor security policies.

Employees of professional labor service companies often have good professional skills and many years of labor security work background, which is beyond the reach of employers. Therefore, from standardizing and improving the employment system of employers, especially the human resources work in labor relations, labor service companies can play the role of consultants and guidance; Can better mobilize the enthusiasm of employees,

Users pay attention to the development of human resources and the promotion of core competitiveness of enterprises, so as to realize the effective utilization and rational allocation of human resources.

8. It is conducive to enhancing the flexibility of employers and the protection of their constraints by labor laws.

Extended data:

Rights and obligations are mainly embodied in the following three aspects:

1. The labor dispatch unit shall conclude a written labor contract with the dispatched workers. The purpose of this regulation is to clarify once again the labor relations formed between labor dispatch units and workers. In addition to the necessary provisions of general labor contracts, labor contracts should also clearly stipulate the employer, dispatch period and post of the dispatched workers.

2. The labor dispatch unit is the employing unit referred to in this Law, and shall perform all the obligations of the employing unit to the laborers. This regulation clarifies the formal labor relationship between the labor dispatch unit and the laborer stipulated by the formal cost method. The labor dispatch unit undertakes all rights and obligations of the employing unit. These rights and obligations are clearly defined in this law.

For example, the dispatching unit shall undertake the obligations of recruiting workers, signing labor contracts, paying economic compensation, paying wages, participating in social insurance and paying fees according to law; The employing unit shall allow the workers to join or organize trade unions and other obligations according to law, and pay economic compensation and wages when the dispatched unit terminates the labor contract.

Participate in social insurance and pay fees according to law, and bear joint liability.

3. The labor dispatch unit shall conclude a fixed-term labor contract with the dispatched worker for at least two years. The term of a labor contract shall be agreed upon by both parties to the labor contract. It can be a fixed-term labor contract, an open-ended labor contract, or a labor contract with the completion of certain work as the term.

Fixed-term labor contracts are also agreed upon by both parties. However, this law has made mandatory provisions on the term of labor contract in labor dispatch, that is, it shall not be less than two years, but it may exceed two years.

References:

Baidu encyclopedia-labor dispatching