Is it legal for labor dispatch companies to recruit people in the name of other units?

It is illegal for a labor dispatch company to recruit people in the name of other units.

Legal analysis

Labor dispatch, also known as manpower dispatch and talent leasing, is a form of employment in which labor dispatch agencies sign labor contracts with dispatched workers, dispatch workers to other employers, and then employers pay service fees to dispatch agencies. It was born in America in the 20th century. This form is mostly implemented in temporary, auxiliary or alternative positions, which is beneficial to employers to reduce recruitment costs and training costs. Generally, with the approval of the labor and personnel departments of provinces and cities, professional human resources service companies can be established. Its main business includes human resource outsourcing, human resource dispatch, providing talent supply information for enterprises through recruitment network, and providing job registration and recommendation for individuals. At the same time, it also provides enterprises with agency job fairs and legal and regulatory advice. Generally, with the approval of the labor and personnel departments of provinces and cities, professional human resources service companies can be established. Its main business includes human resource outsourcing, human resource dispatch, providing talent supply information for enterprises through recruitment network, and providing job registration and recommendation for individuals. At the same time, it also provides enterprises with agency job fairs and legal and regulatory advice. Labor dispatch is mainly concentrated in public enterprises and institutions, and some central enterprises even have more than two-thirds of employees. In some monopoly industries, employers use a large number of labor dispatch personnel, which not only ensures that regular employees, especially middle and senior managers, enjoy the highest possible salary, but also artificially evades the "red line" of total wage control, making the total wage control system ineffective. Some units use a large number of labor dispatchers to pay their wages in the form of "labor fee", which reduces the actual payment of their own wages in disguise, thus making "labor fee" a "regulating valve" for some state-owned enterprises and institutions to avoid the control of total wages.

legal ground

Article 1 19 1 of the General Principles of Civil Law of People's Republic of China (PRC) * * * If the staff of the employing unit causes damage to others due to the performance of their work tasks, the employing unit shall bear the tort liability. After the employer assumes the tort liability, it may claim compensation from the staff who have intentional or gross negligence. During the period of labor dispatch, if the dispatched personnel cause damage to others due to the execution of work tasks, the employing unit that accepts labor dispatch shall bear tort liability; If the labor dispatch unit is at fault, it shall bear corresponding responsibilities.

People's Republic of China (PRC) Law on the Prevention and Control of Occupational Diseases Article 86 If an employer other than the one specified in Article 2 of this Law produces occupational hazards, its occupational disease prevention activities may be implemented with reference to this Law. The employing units that dispatch labor services shall fulfill the obligations of employing units stipulated in this Law. Measures for the implementation of this Law by the China People's Liberation Army shall be formulated by the State Council and the Central Military Commission (CMC).