Cooperating with PRC staffing firms
Labour agents and staffing firms play a dynamic function in China’s employment space, however many foreign companies continue to misunderstand the relationship. Understanding the importance of selecting the right partner for your labour needs and knowing how to navigate negotiations are key
Issue: September 2011
Keywords (click to search):
staffing firm
outsource
employment
labour
R&P China Lawyers
One of the sections (Chapter 5, Section 2) of the PRC Employment Contract Law (中华人民共和国劳动合同法) that altered China’s employment law landscape from January 1 2008 onwards, for the first time provided strict rules on the dealings of staffing firms. The services of Chinese staffing firms, also referred to as labour agents or by the acronym “Fesco” after the most famous staffing organisation in China (see below), continue to be popular among foreign companies in particular, whether out of necessity, convenience or even in some cases ignorance. Two questions need to be revisited from time to time to ensure that companies make the optimum choice in regards to using staffing firms: is using such a company still a good choice? And if so, what best practices can be applied to minimise costs and risks?
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