April 24, 2021
During the outbreak of COVID-19 in 2020, the shared employment emerged as a new manifestation of shared economy. On the premise of the respect of employees’ wishes, the consensus of multiple stakeholders and non-profit purposes, idle labour resources were shared between different industries and deployed to employment subjects with labour shortages. MOHRSS issued the “Notice” on Sept. 30th, 2020.
1. Do companies that share labor need to sign a cooperation agreement?
Yes. Both parties of the employer need to sign a cooperation agreement.
The cooperation agreement can stipulate labor’s number, time, work location, work content, rest, labor protection conditions, labor remuneration standards, time and method of payment, boarding and lodging arrangements, circumstances in which the worker can be returned to the worker, and the division of responsibilities and compensation methods, as well as the settlement of transportation and other expenses when workers have work injury.
2. Does the original enterprise need to solicit opinions from workers before arranging workers to work in enterprises lacking labors?
Yes. Human resources and social security departments at all levels shall instruct enterprises with surplus employees (original enterprises) to solicit opinions from workers before arranging them to work in enterprises lacking labors, and negotiate with them.
3. What are the requirements for the shared employment period?
The period of shared employment shall not exceed the remaining period of the labor contract concluded between the worker and the original enterprise.
4. What are the rights of workers to know?
It is necessary to instruct enterprises lacking labors to truthfully inform workers of their work content, working conditions, working location, occupational hazards, safety production conditions, labor remuneration, corporate rules and regulations, and other information that workers need to know.
5. Can the company arrange the dispatched workers to work in other units in the name of shared employment?
No. Enterprises shall not arrange dispatched workers working in their own units to work in other units in the name of shared employment.
6. When a worker is assigned to work in an enterprise that lacks labors, does the labor contract need to be changed?
Yes. The original enterprise and the workers have reached an agreement through consultation to arrange the workers to work in the enterprise lacking labors. It doesn’t change the labor relationship between the original enterprise and the workers.
Workers who work in other units without being arranged by their employers do not belong to the shared employment situation mentioned in this notice.
Workers who work in other units without being arranged by their employers do not belong to the shared employment situation mentioned in this notice.
The human resources and social security departments at all levels shall guide the original enterprise to negotiate with the workers to change the labor contract, and specify the new working place, job position, working hours, rest and vacation, labor remuneration, working conditions, and workers need to be follow the rules and regulations that established in accordance with the law during the working period in the enterprise lacking labor, etc.
7. Who pays labor remuneration and social security for workers working in enterprises lacking labors?
Human resources and social security departments at all levels should guide and urge enterprises that lack labors to arrange their working hours and tasks in a reasonable manner, guarantee workers’ rights to rest and vacation, provide labor safety and health conditions and necessary labor protection supplies that comply with national regulations, and settle worker’s labor remuneration to the original enterprise in time.
It is necessary to guide and urge the original enterprise to pay labor remuneration and social insurance premiums for laborers on time and in full, and must not deduct labor remuneration from laborers or collect fees in any name.
It is necessary to guide and urge the original enterprise to track and understand the work situation and related demands of the workers in the enterprises lacking labors, and to help the workers solve the difficulties and problems in the work in a timely manner.
It is necessary to guide and urge the original enterprise to pay labor remuneration and social insurance premiums for laborers on time and in full, and must not deduct labor remuneration from laborers or collect fees in any name.
It is necessary to guide and urge the original enterprise to track and understand the work situation and related demands of the workers in the enterprises lacking labors, and to help the workers solve the difficulties and problems in the work in a timely manner.
8. If a worker has a work-related accident while working in an enterprise that lacks labors, who shall bear the responsibility?
If a worker has a work-related injury while working in an enterprise that lacks labors, the original enterprise shall bear the liability for work-related injury insurance in accordance with Article 43, paragraph 3 of the "Work Injury Insurance Regulations," and the compensation method may be agreed with the enterprise that lacks labors.
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