What is the fundamental difference between labor dispatch and labor outsourcing? What are the advantages and disadvantages of each.
Labor outsourcing is not a legal concept, the core content is the contractor will be part of the business or work content to the contractor to complete, the contractor in accordance with the agreement to pay the contractor outsourcing costs, outsourcing business or work content is generally the contractor's non-core business. In practice, many of the contract, commission contract can be categorized as labor outsourcing category. Common forms of labor outsourcing include production line outsourcing, warehousing and logistics outsourcing, outsourcing of auxiliary positions (such as security, cleaning, catering, etc.), short-term project outsourcing, human resources outsourcing, training and consulting outsourcing. Article 27 of the Interim Provisions on Labor Dispatch stipulates, "Where an employer uses workers in the form of labor dispatch in the name of contracting or outsourcing, the employer shall deal with the matter in accordance with these provisions." This provision makes labor outsourcing contractors nervous, fearing that their use of labor outsourcing will accidentally be recognized as labor dispatch. Thus, how to distinguish between labor dispatch and labor outsourcing, and how to asphalt the boundaries between the two is particularly important. Zhaoming lawyers combined with the legal provisions and practice, summarized the six major differences between labor outsourcing and labor dispatch, specifically as follows: 1. the application of different laws. Labor outsourcing applicable contract law, more respect for the autonomy of the parties, the law is not prohibited that is free; labor dispatch is applicable to labor contract law, labor contract law belongs to the category of social law, with a certain degree of public law nature, reflecting more on the care of this vulnerable group of workers, such as employers with the legal conditions for the return of the workers can be sent back to the unit of labor dispatch workers, shall not be returned arbitrarily. 2.2. the management authority of the workers. The management authority of the workers is different. In the case of labor outsourcing, workers engaged in outsourced services are directly managed by the contractor, and the contractor is not allowed to directly manage them, and the rules and regulations of the contractor do not apply to the workers engaged in outsourced services, or else it is equivalent to entering the threshold of labor dispatching with one foot; while in the case of labor dispatching, the workers are mainly managed by the employing unit directly, and the rules and regulations of the employing unit are applicable to the workers being dispatched. The different management authority of the workers is the core difference between labor outsourcing and labor dispatch, to achieve "true outsourcing", the contractor must cut off the direct management of the workers engaged in outsourced labor services, the contractor's requirements, instructions are best directly to the contractor's outsourced labor services site management personnel assigned. 3. Labor Risk Assumption Different. The core element of labor outsourcing is the results of work, the contractor is concerned about the results of the work delivered by the contractor, as to how the contractor to complete the work, the contractor does not care, the contractor only in the results of the work in line with the agreed upon to obtain the corresponding outsourcing costs, engaged in outsourcing of labor labor risk has nothing to do with the contractors; labor dispatch in the core element of the process of labor, the labor dispatch unit is not responsible for the work results of the workers dispatched, and the labor risk is not the responsibility of the contractor. The core element of labor dispatch is the labor process, the labor dispatch unit is not responsible for the results of the work of the dispatched laborers, the dispatched laborers may "succeed" or "fail", the risk of success or failure is borne by the employing unit. 4. the risk of employment is different. Labor outsourcing, the contractor to recruit workers employment risk has nothing to do with the contractor, the contractor and the contractor to bear their own employment risk, the risk of their own employment is completely isolated; labor dispatch as a form of labor employment, the employer is the labor dispatch tripartite legal relationship of the subject, need to bear a certain amount of employment risk, such as the labor dispatch unit illegal to the dispatched workers caused damage, the employer and the labor dispatch unit need to bear a certain amount of risk, such as the labor dispatch unit illegal to the dispatched workers caused damage, the employer and the labor dispatch unit need to bear a certain amount of risk. For example, if the labor dispatch unit violates the law and causes damage to the dispatched workers, the employer and the labor dispatch unit have to bear joint and several liability. 5. different business qualification requirements. Labor outsourcing contractors generally have no special business qualification requirements, unless there is a special law; labor dispatch unit must be established in strict accordance with the provisions of the labor contract law, obtaining administrative licenses for labor dispatch of legal entities. 6. Accounting treatment is different. In the labor outsourcing activities, the contractor in the outsourcing costs paid by the contractor to pay labor remuneration to workers engaged in labor outsourcing work, labor outsourcing costs are not included in the contractor's total wages; in the labor dispatch, the total wages of labor dispatched personnel into the scope of the employer's total wages statistics, including the employer's burden of the basic salary, overtime pay, performance pay, and a variety of allowances and subsidies, etc., but does not include the use of labor dispatch units for the use of the basic wages. but does not include the management fees and other labor costs paid for the use of labor dispatchers.