Labor outsourcing refers to the enterprise will be part of the company's business or function of the content of the work contracted to the relevant organizations, by their own arrangements for personnel in accordance with the requirements of the enterprise to complete the corresponding business or function of the content of the work is a form of business is defined by law. Labor dispatch refers to the employer and the labor dispatch unit signed a labor dispatch agreement, the labor dispatch unit dispatched to the employer to engage in the employer to arrange the work content of a form of employment. There is an essential difference between the two.

The similarity between the two is that the workers are working for units other than the legal employer, but the difference lies in the "management right". In the case of labor dispatch, the dispatching company provides the workers, and then no longer directs the workers, and does not interfere with the production process. Instead, the employer has the same management and command authority over the dispatched workers as it does over its regular employees in terms of production and operation. The employer pays the labor dispatching company the exact amount of money: the salary, social security and headcount fee (management fee) of each laborer. The management of labor outsourcing is in the hands of the outsourcing company, the enterprise will outsource a certain business to the outsourcing company, no longer intervene in the specific business operations, by the outsourcing company's own judgment, their own operation. Enterprises pay the outsourcing company a total fee.