"To limit labour costs in a downturn, companies turn to independent contractors. However, China’s Employment Contract Law specifically regulates employer rights and obligations to hire a worker as an employee. It protects employees, imposes more liabilities on employers, and can expose employers to greater legal risks. Understanding the different legal impact on these two types of labour forces enables companies to achieve their goals for reducing labour costs and legal risks while maintaining a competitive edge."
Read Dorsey Partners Xia Chao and Michael Droke's full article in the November edition of the Shanghai Business Review.