Along with the coming of knowledge-based economy, human capital, especially the specialized human capital has become the most important element of the economic development. As the entrepreneurs face competitive environments, the new changes of enterprise's core competency and the changes of the relationship between labor and company, companies must have more flexible HRM strategies to maintain the competitive advantages. In order to seek for more flexibility in employment, employee leasing has become one of the popular ways for companies applied in America, Japan and European countries as well as in Taiwan province and the mainland of China. Employee leasing can help companies retain professional employees or special technicians, deal with seasonal demands, and reduce costs and unnecessary managerial responsibilities, so that they can focus more on their nuclear business. Although employee leasing brings more flexibility in employment and reduces costs for companies, it still has some complicated issues needed to be dealt with. The employment relationship is divided into three principal parts, which hasn't been regulated in labor laws now. This raises many issues which must be solved in practices. It is a trend that employee leasing will get more and more popular in China. Therefore, it is strongly suggested that it is very necessary to do some more advanced studies on the backgrounds of its development, about why it is used ,how it is used now, how it is operating, what it is going to be in the future, and about the problems existed in employee leasing. By comparing the current situation of employee leasing in China with that abroad, the study manages to find out the way which is suitable for the employee leasing operation in China, and advises the government to legislate new laws about this new field; the study also suggests the enterprise and employees who are involved in the employee leasing to regulate their behaviors. |