China: MOHRSS Issues the Circular to Improve Guidance and Services for Employee Sharing

The Ministry of Human Resources and Social Security has issued the Circular on Proper Guidance and Services for Employment Sharing  (the “Circular”) to guide companies to fully respect wishes of employees and their right to know during employee sharing period. The employee sharing mode refers to where companies that have surplus of employees share their idle employees to work at other companies in short of labor and then are compensated with the human cost by other companies for the employees shared.  The employee sharing mode is known as an impressive innovation for short-term manpower re-allocation during the pandemic period.  The Circular indicates that human resources and social security departments at all levels shall guide companies that have surplus of employees to seek employees’ opinions and negotiate with employees to reach consensus before arranging them to work at the companies in lack of employees.  The period of employee sharing shall not exceed the remaining period of employment contract entered between employees and their original employer.  Also, companies shall not arrange dispatched employees to work in other entities under the name of employee sharing.

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