There is no doubt that the phenomenon of division of labour is an exciting development for the Chinese labour market, which facilitates the flow of human resources where they are needed and helps employers support their businesses in times of difficulty. Its popularity in the current climate is hardly surprising. Expect more labour in China in the short term – but think about the potential for risk and conflict, at least until clearer guidelines on how the workforce is distributed is implemented in law. The distribution of staff is mainly determined by members of business groups who organize their work in a uniform manner, not at the level of individual companies, but at the level of business groups. Work-sharing agreements must have a minimum duration of 6 weeks. The initial maximum term of the contract is 26 weeks with an extension of up to 12 weeks. Extensions are not automatic; All renewal applications must be reviewed and approved by Service Canada. Employers must submit the application form (EMP 5100) at least 10 working days before the end of their work-sharing agreement. The request for an extension must provide reasons why the recovery was not carried out and justify a continuous reduction in activity that would lead to the dismissal of one or more staff members.
The employer must submit an updated recovery plan listing progress to date, with a list of activities that will take place during the extension period and will result in normal work schedules until the end of the agreement. This sample form describes various common and individual tasks that must be performed and coordinated between employees as part of a division of labour agreement and documents the agreement of each staff member. However, the sharing of labour is not without its challenges. Training by employers, whether in the workplace or outside the workplace, can take place during the work-sharing agreement. Service Canada cannot offset the wage costs of workers who participate in training activities during normal work/training days. Training may take place on days/hours without employment for which workers receive insurance benefits from the division of labour; Participation, however, would be optional. Different payment methods can affect the calculation of social security and the individual payment of income tax (IIT). If the temporary employer`s salary is paid directly to the entitled, it is responsible for withholding and deducting the IIT, which affects the amounts due and the calculation of social security contributions. In addition, the temporary employer of temporary workers should be careful when reviewing labour costs to the permanent employer of workers – if this labour-sharing agreement generates labour gains, the agreement risks being considered unauthorized dispatch work and punishable by administrative sanctions and fines.