Labor leasing is the act of a worker entering into a labor contract with a labor user, which is a business that leases labor, and then the worker is transferred to work and is under the management of a different labor user while maintaining a labor relationship with the labor user with whom they have entered into a labor contract. The labor leasing activity is a conditional business sector, only to be carried out by enterprises with a labor leasing license and applies to certain specified jobs as regulated in Article 52 of the Labor Law 2019.
According to the regulations in Article 53 of the Labor Law 2019, labor leasing activities must follow the following principles:
1. The maximum duration of labor leasing for a worker is 12 months.
2. The labor user may utilize leased labor in the following cases:
– Temporarily meet sudden increases in labor demand for a certain period of time;
– Substitute for a worker during maternity leave, work-related accidents, occupational diseases, or when fulfilling citizen obligations;
– Have the need to use high-level professional and technical labor.
3. The labor user is not allowed to utilize leased labor in the following cases:
– To substitute for workers who are exercising their strike rights, resolving labor disputes;
– Without a specific agreement regarding the liability for compensation for work-related accidents or occupational diseases of the leased worker with the labor leasing enterprise;
– Substitute for workers who are terminated due to structural or technological changes, economic reasons, or division, separation, merger.
4. The labor user is not allowed to transfer leased workers to another labor user; they are not allowed to use leased workers provided by enterprises without a labor leasing license.
