New Regulation to Tighten Hiring of Contracted Laborers

New Regulation to Tighten Hiring of Contracted LaborersBased on a temporary regulation that will take effect on March 1, states that the Shenzhen human resources administrators is tightening supervision of local labor contractors. As of the moment there are more than 3,000 registered labor contractors in the city as of May 2013 and around 2,800 of these are business enterprises. Also according to the market supervision department, Shenzhen only has 62 registered labor contractors by the end of January as a law was implemented in July that required labor contractors to get new approval from authorities.

A representative for the Shenzhen Municipal Bureau if Human Resources and Social Security stated that a majority of labor contractors are not meeting regulatory requirements. Based on the new labor contract law which is now requiring positions given to contracted workers to be temporarily replaceable and assisted oriented. Although most of the contract positions given in Shenzhen are not replaceable or is temporary. Also contract workers that fill positions in the primary operations violate these regulations as well.

Labor regulations have also required employers to limit their hiring of contract workers and should not exceed 10 percent of the employer’s overall staff members. 30 percent of these local enterprises has already exceeded these limits and are even employing more contract workers that permanent staff. Also these hired contract workers are getting salaries that are different from permanent workers along with different levels of benefits, health insurance and dividends.

A recent survey by the city human resources administration reported that 300 of the companies have actively contracted 200,000 laborers for 2,300 employers in the city especially in the logistics, manufacturing and transportation fields or worked at state owned organizations and government projects.

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