Labor Contract Law 7

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Part II Work placement

Article 57 Staffing firms shall be established in accordance with the relevant provisions of the Company Law and have registered capital of not less than RMB 500,000.

Article 58 Staffing firms are Employers as referred to in this Law and shall perform an Employer's obligations toward its employees. The labor contract between a staffing firm and an employee to be placed shall, in addition to the matters stipulated in Article 17 of this law, specify matters such as the entity to which the employee will be dispatched, the term of his placement, his position, etc.

Staffing firms shall conclude a fixed term labor contract with a term of not less than two years with employees to be placed, and pay labor remuneration on a monthly basis. During periods when there is no work for the employees to be placed, staffing firms shall pay such workers remuneration on a monthly basis at the minimum wage rate as prescribed by the people's government of the place where the staffing firms are located.

Article 59 When placing employees, staffing firms shall enter into staffing agreements with the entities that accept the employees under the placement arrangements (Accepting Entities). The staffing agreements shall stipulate the job positions in which the employees are to be placed, the number of persons placed, the term of placement, the amount and method of payment of labor remuneration and social insurance premiums, and the liability for breach of agreement.

An Accepting Entity shall decide with the staffing firm on the term of placement based on the actual requirements of the job position, and it may not conclude several short-term placement agreements to cover a continuous term of labor use.

Article 60 Staffing firms shall advise the employees placed of the content of the placement agreements.

Staffing firms shall not retain part of the labor remuneration paid by the Accepting Entities to the workers in accordance with the placement agreements.

Staffing firms and Accepting Entities shall not demand any fees from the workers.

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