Labor dispatch and labor outsourcing are two different employment models, both of which involve the cooperation between the employer and a third-party organization, but there are great differences in the application of law, legal relationship, management entity, scope of employment, business qualification, settlement method, accounting treatment, and consequences of violations. This article will analyze the definitions, characteristics, advantages and disadvantages, and precautions of labor dispatch and labor outsourcing, and help you understand their essential differences and practical operations.
What is labor dispatch?
Labor dispatch refers to the employment mode in which a labor dispatch entity signs a labor contract with an employee, dispatches the worker to work in the employing unit, and the employing unit manages the labor of the worker. A labor dispatch entity refers to a legal entity approved by the labor administrative department and with a labor dispatch business license, which signs a labor dispatch agreement with the employing entity, provides labor dispatch services to the employing entity in accordance with the agreement, and collects certain management fees from the employing entity.
Workers refer to those who have signed a labor contract with a labor dispatch unit and are dispatched to work in the employing unit, who have a labor contract relationship with the labor dispatch unit, enjoy basic labor rights and obligations, and are also bound by the labor management and rules and regulations of the labor dispatching unit, but there is no labor contract relationship with the employing unit. An employer refers to a unit that has signed a labor dispatch agreement with a labor dispatch unit and accepts the work of the workers dispatched by the labor dispatch unit, which is responsible for guiding, supervising and evaluating the work of the workers, and shall also pay labor remuneration to the labor dispatch unit in accordance with the agreement, but there is no labor contract relationship with the workers.
Characteristics of labor dispatch.
The characteristics of labor dispatch are mainly as follows:
Labor relations are separated from employment relations. In labor dispatch, the labor relationship exists between the labor dispatch unit and the employee, the employment relationship exists between the employer and the employee, and the labor dispatch unit and the employer is a civil contract relationship, and the rights and obligations between the three are different, constituting a special employment model of the tripartite relationship.
The provisions of the Labor Contract Law shall apply. Labor dispatch is a special form of labor contract, which is subject to the labor contract law and its relevant provisions, such as the conditions for the establishment of labor dispatch units, the scope of labor dispatch, the content of labor dispatch agreements, the obligations of labor dispatch units, the obligations of employers, the rights of employees, and the settlement of labor disputes.
It is conducive to flexible employment and cost reduction. Labor dispatch can help employers adjust the scale and structure of employment in a timely manner according to the needs of production and operation, solve the temporary, auxiliary or substitution problems of employment, improve the efficiency and quality of employment, and at the same time reduce the employment risks and costs of the employer, such as recruitment, training, social security, welfare, dismissal, etc., which are passed on to the labor dispatch unit.
What is labor outsourcing?
Labor outsourcing refers to an employment model in which the employer outsources part of the work or project to the contractor, and the work or project is organized and implemented by the contractor, and the employer accepts the work results and does not carry out labor management for the workers. The contractor refers to the unit that signs a contract or entrustment contract with the employer and undertakes the outsourced work or project, and the relationship between it and the employer is a civil contract, and it provides labor outsourcing services to the employer in accordance with the contract, and collects a certain amount of outsourcing fees from the employer. Workers refer to those who have signed a labor contract with the contractor and are engaged in labor outsourcing work or projects, who have a labor contract relationship with the contractor, enjoy basic labor rights and obligations, and are also bound by the labor management and rules and regulations of the contractor, but there is no labor contract relationship with the employer. The employing unit refers to the unit that has signed a contract or entrustment contract with the contractor and entrusted the contractor to complete the outsourced work or project, and it is responsible for the acceptance and payment of the results of the outsourced work or project, and shall also provide necessary assistance and support to the contractor in accordance with the contract, but there is no labor contract relationship with the employee.
Characteristics of labor outsourcing.
The characteristics of labor outsourcing are mainly as follows:
The provisions of the Contract Law apply. Labor outsourcing is a special form of contract, which is subject to the Contract Law and its relevant provisions, such as the content of the contract or entrustment contract, the obligations of the contractor, the obligations of the employer, the modification, rescission, termination, and liability for breach of contract, all of which have clear legal provisions and requirements.
Focus on the results of the work rather than the labor process. In labor outsourcing, the employer focuses on the work results delivered by the contractor, and how the contractor completes the work is not the core concern of the employer. The contractor can only get the corresponding outsourcing fee when the work results are in line with the agreement, and the risk of success or failure of the outsourcing work or project has nothing to do with the employer.
It does not involve labor management and employment responsibilities. In labor outsourcing, the employer does not manage the labor of the worker and does not bear the employment responsibility, but the contractor is responsible for the management of the worker and bears the employment responsibility. There is no labor, labor or other employment relationship between the employer and the employee, and it is not subject to the protection and restriction of labor laws.
Advantages and disadvantages of labor dispatch and labor outsourcing.
Labor dispatch and labor outsourcing have their own advantages and disadvantages, which are as follows:
Advantages of Labor Dispatch:
The scale and structure of employment can be flexibly adjusted according to employment needs to improve employment efficiency and quality
It can reduce employment risks and costs, such as recruitment, training, social security, welfare, dismissal, etc.;
With the help of the professional services of labor dispatch units, the professionalism and standardization of employment can be improved.
Disadvantages of Labor Dispatch:
It may lead to the lack of management and control of the employer over the employee, and affect the enthusiasm and effectiveness of the worker
It may cause damage to the rights and welfare of workers, and reduce the satisfaction and loyalty of workers;
It may cause irregularities in the qualifications and services of the labor dispatch unit, and affect the quality and safety of labor dispatch.
Advantages of Labor Outsourcing:
Some non-core or auxiliary work or projects can be outsourced to professional contractors to improve the efficiency and quality of work;
It can reduce the burden of management and supervision of the employer and focus on the core or major work or project;
It can reduce the employment responsibilities and risks of the employing unit and transfer them to the contractor.
Disadvantages of labor outsourcing:
It may cause the employer to not grasp the quality and progress of the outsourced work or project, and affect the results and effects of the work
It may cause the employer to lose control over the costs and expenses of the outsourced work or project, which will affect the benefits and benefits of the work
It may cause the employer to not guarantee the confidentiality and security of the outsourced work or project, and affect the risks and consequences of the work.
Precautions for labor dispatch and labor outsourcing.
In practice, labor dispatch and labor outsourcing should pay attention to the following aspects:
Legal compliance. Legal compliance means that the employer and the third-party organization must comply with relevant laws and regulations, rules and regulations, industry standards, social morality, etc., obtain corresponding qualifications and licenses, sign legal and effective contracts and agreements, perform the provisions and obligations of contracts and agreements, bear the responsibilities and consequences of contracts and agreements, and avoid violations of laws and regulations.
Choose the right one. Choosing the right one means that the employer and the third-party organization should choose the appropriate employment model and partner according to their actual situation and needs, examine the other party's qualifications, reputation, service, quality, efficiency, safety, etc., compare different plans, advantages, disadvantages, risks, benefits, etc., make reasonable judgments and decisions, and achieve win-win goals and results.
Management is effective. Effective management means that the employing unit and the third-party organization should establish an effective management and supervision mechanism, clarify their respective responsibilities and authority, formulate reasonable plans and arrangements, implement effective control and evaluation, communicate and feedback in a timely manner, solve possible problems and conflicts, ensure the smooth and successful work, and improve the efficiency and quality of work.
Summary. Labor dispatch and labor outsourcing are two different employment models, both of which involve the cooperation between the employer and a third-party organization, but there are great differences in the application of law, legal relationship, management entity, scope of employment, business qualification, settlement method, accounting treatment, and consequences of violations. Labor dispatch and labor outsourcing have their own advantages and disadvantages, and employers and third-party institutions should choose appropriate employment models and partners according to their actual conditions and needs, comply with relevant laws and regulations, sign legal and effective contracts and agreements, establish effective management and supervision mechanisms, ensure the efficiency and quality of work, and achieve win-win goals and results.