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4.2.1     Placement contract between own company and staffing company

Placement contracts are concluded between the staffing firm and the hiring company, which is called the accepting entity. The placement contract stipulates the job positions in which the dispatched employees are to be placed, the number of persons that will be placed, the placement term, the amount and method of payment of remuneration and social insurance contributions to be paid by the accepting entity as well as the provisions on liability for beach of the agreement.

Both parties agree on a placement term, which is based on the actual requirements of the position. To protect the position of employees it is prohibited by law to conclude multiple short-term placement contracts to cover a continuous term of labour usage.

Staffing firms shall inform their employees on the contents of the placement contracts concluded with the accepting agency.

4.2.2     Employment contract between staffing company and dispatched employees

The staffing firm will enter into a formal employment relationship with the employees that will be dispatched to the accepting entity. For staffing firms, it is mandatory to conclude fixed-term employment contracts with a minimum duration of not less than two years.

As stipulated by law the employment contract shall include the following items:

• Name, domicile and legal representative or main person in-charge of the employer.
• Name, residential address and number of the resident ID card or other valid identity document number of the employee.
• Term of the contract.
• Scope of work and place of work.
• Working hours, rest, and leave.
• Labour compensation.
• Social insurance.
• Labour protection, working conditions and protection against occupational hazards; and
• Other issues required by laws and regulations to be included into the contract.

In addition, work placement contracts must specify at which company the employee will be dispatched, his position and the placement term.