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[Excerpt] Following the recent amendment to the Employment Contract Law (“ECL Amendment”), the PRC Ministry of Human Resources and Social Security (the “MOHRSS”) issued the Notice on the Implementation of the Amended Employment Contract Law and Strengthening the Regulation of Labor Dispatch on January 23, 2013 (the “Notice”).

According to the Notice, MOHRSS and local labor authorities should take the following actions to further implement the ECL Amendment:

(i) MOHRSS will draft new implementing regulations on the use of labor dispatch and new measures regarding permit requirements for staffing agencies;

(ii) local labor authorities should conduct surveys of the labor dispatch situation in their respective jurisdictions, as well as investigate and start correcting violations of statutory labor dispatch provisions; and

(iii) local labor authorities must inspect licensed staffing agencies annually and revoke the permits of agencies that fail to pass the annual inspection.


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