Why outsourcing companies don't have to buy social security

Generally speaking, enterprises (actual employers) do not need to buy social security for outsourced employees. Because usually in the enterprise and outsourcing labor company (the actual employer) signed an agreement, will be agreed by the outsourcing labor company for outsourcing employees to buy social security, so the enterprise does not need to buy social security in the workers. If the outsourcing contract is not clear, then the actual employer must apply for social security for employees.

What are the advantages of outsourcing labor?

1. By outsourcing the labor work, the enterprise, on the one hand, the labor outsourcing company is responsible for the relevant affairs of the custodian, and provides them with advice on labor, and helps to safeguard their legitimate rights and interests from being infringed upon. On the other hand, the company provides consultation on relevant policies and gives rationalization suggestions, which can effectively avoid labor risks for enterprises.

2, the enterprise through outsourcing labor services, can enable enterprises to save a lot of office costs, reduce the expenditure of hardware and software resources, eliminating the enterprise managers related to personnel management process of a large number of mechanical repetitive work, so that managers can be put into other effective value-added management activities.

3. Comprehensive services to improve the enthusiasm of employees. Labor outsourcing company for the hosting staff for all personnel agency procedures, eliminating the worries of employees, so that they are fully committed to their work, the enterprise's sense of responsibility to enhance the more enthusiasm for work. The most important thing is that business outsourcing and labor dispatch, compared to the employer (contractor) do not have to bear joint and several liability.

Second, the disadvantages of outsourcing enterprise labor (risk)

1, the risk of selecting the outsourcing unit. Enterprises in the process of outsourcing business, if the enterprise selected to outsourcing company's service or skill level if not well enough to meet the needs of the enterprise's management, it is likely to ruin the image and reputation of the enterprise, if the work outsourcing process of human resources change frequently, the level of the different, it will bring the risk of the development of the enterprise.

2, the risk of labor outsourcing contract. Outsourcing contract is the outsourcing company outsourcing the implementation of the basis, if the contract agreement is not exhaustive, not well thought out, the two sides are prone to disagreements. In the case of differences can not be effectively resolved, the enterprise needs to bear the resulting many unclear legal risks.

3, the risk of corporate information leakage. Enterprises and labor outsourcing company cooperation, must be part of the enterprise's information to the outsourcing unit. Information **** enjoy the benefit of communication and coordination between the two sides, but will also increase the risk of the enterprise, because the outsourcing unit's infidelity or negligence will lead to the loss of information resources and business secrets leakage and other risks, competitors can "take advantage of the situation"

In summary, in general, the enterprise (the actual unit of labor) is not required to The company (the actual employer) does not need to buy social security for the outsourced employees. The reason is that usually when a company signs an agreement with an outsourcing company (the actual employer), it will agree that the outsourcing company will buy social security for the outsourced employees, so the company does not need to buy social security for the workers.

Legal basis: "Chinese People's **** and State Social Insurance Law"

Article 2 of the State to establish a basic old-age insurance, basic medical insurance, industrial injury insurance, unemployment insurance, maternity insurance and other social insurance system, to protect the citizens in old age, illness, industrial injury, unemployment, childbirth and other situations in accordance with the right to obtain material assistance from the State and society.

Article 3 The social insurance system adheres to the policy of broad coverage, basic protection, multi-level and sustainability, and the level of social insurance shall be commensurate with the level of economic and social development.

Article 4: Employers and individuals within the territory of the People's Republic of China shall pay social insurance premiums in accordance with the law, and shall have the right to inquire about the records of payment of premiums and the rights and interests of individuals, as well as to request that social insurance agencies provide social insurance counseling and other related services.

Individuals enjoy social insurance benefits in accordance with the law, and have the right to supervise the payment of contributions by their own organizations.