Study On Incomplete Contract Governance In Labour Dispatch

Since the reform and open-up, labour dispatch has developed rapidly in order to meet the requirements of flexible employment in enterprises and relieving the employment pressure, and it has become an important form of employment in China’s labour market. However, as China’s labour dispatch starts too late, develops too rapidly, lacks legal regulation, and has high-level incompletion of contract governance; as a result, many issues have occurred e.g. same work with different pay, hidden employment relations, impairment of labourer’s right and interest, insufficient sense of belongings, etc., which severely restrict the healthy development of labour market, and incur a negative impact on China’s economic development and social stability. How to choose the optimal contract governance mechanism, control the various risks from the imcompletion of contracts, regulate the three parties’ right and interest, and give consideration to both fairness and efficiency in labour dispatch activities? This remains a difficult problem which needs urgent solution.This paper takes contract theory as a theoretic basis, adopts both methods of literature research and field study, analyzes the employment status of Aviation Traffic Management Bureau A’s labour dispatch practice, and further explains the causes of incomplete labour dispatch contracts. The paper takes three typical cases from Aviation Traffic Management Bureau A’s labour dispatch practice over past twenty years; and based on case study, gives an explanation of the three parties’ opportunistic behavior during the contracts implementation, and discloses the risks related to labour dispatch caused by incomplete contracts.Last section is the core of this paper, which proposes a suitable governance mechanism from three perspectives--- formal contract governance, relation contract governance and psychological contract governance, with detailed governance measures. It also points out the deficiency of single governance mechanism. Based on this, the paper integrates the three governance mechanisms, and proposes the multi-governance mechanism of labour dispatch, and puts forward the detailed solution and advice on Aviation Traffic Management Bureau A’s labour dispatch.From the study of this paper, it aims at providing government agencies, state-owned enterprises and public institutions a scheme with implementation feasibility, and realizes the win-win situation of three parties--- employer, labour dispatch servicer and labourer. In the meanwhile, from the perspective of contract governance, it aims at providing some good thoughts on solving the bottleneck issue of human resource system reform in Aviation Traffic Management System, in order to consolidate the basis of maintaining the continuous safety, stable team and healthy development of this industry.