04:05 Issue 27

04:05 APAC

Asia Briefing from Dezan Shira & Associates

employment obligations, management control, costs and compliance exposure.

Recent regulatory developments have

made these choices more significant. Employment and social insurance compliance face closer scrutiny, while labour dispatch remains subject to strict limits around the types and number of workers that can be engaged. Genuine service outsourcing must also be structured around a defined service rather than the provision of personnel. Dezan Shira’s China Briefing examines the three approaches and the key considerations for foreign investors planning their first hires.

China F

Three principal models are available: direct hiring through a locally incorporated entity, labour dispatch, and service outsourcing. Each carries different implications for

oreign investors entering China are advised to carefully consider

their workforce structure before settling on their corporate structure.

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GLOBAL PAYROLL MAGAZINE ISSUE 27

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