A Research On Dispatched Workers’ Current Social Insurance Situation

With the rapid development of society, the forms of employment becomeincreasingly diverse. As a flexible employment way, labor dispatch is better to meetenterprises’ needs of temporary employment. It also can help to reduce labor cost, avoidemployment risk and optimize the personnel structure to achieve effective workforceconfiguration. As a special way of employment, labor dispatch realized separation ofemployee fact and employment relationships. Labor dispatch agencies which take incharge of recruitment do not use workers directly. On the contrary, Accepting entitiesuse dispatch workers without recruitment activities. Accepting entity, dispatch workersand Labor dispatch agencies have formed a tripartite relationship which is comparablystable. However, Owing to difficulties in coordinating rights and obligations of the threeparties mentioned above, labor dispatch also brought numerous labor disputes.This thesis takes current social insurance situation of dispatched workers as itsresearch perspective. By visiting dozens of enterprises and institutions in HEDA(Hangzhou Economic and Technological Development Area) and investigating thesocial insurance conditions of dispatched workers, the author try to find out problemsand shortcomings in both labor dispatching market and social insurance policy. Theresearch perspective and research methods are innovation points of this thesis. For theformer researches were mainly focused on angles of economics, labor science as well asjurisprudence, few of them take a view on dispatched workers’ social insurance problem.About research methods, most former researches put literature research and case studyinto use, few of them involved field survey data.After investigation, this study found out the current social insurance situation ofdispatched workers is quite pessimistic. Problems exposed can be concluded as follows:first, the dispatched workers enjoyed a lower rate of active joining and poor awarenessof social insurance. Most of them chose to bear social insurance losses by themselveswithout fighting for legal rights. Second, employer’s liability is not clear in the labordispatch market. On the one hand, labor dispatch agencies and accepting entities tried toescape from social insurance payment by shirking obligations, on the other hand, theyconspired maliciously to seek illegal interests by choosing provinces and cities thatenjoyed lower social insurance rate or choosing places with a lower average wage, bypicking only one or two insurance items to insure, or choosing some cheap insurance mode to join, labor dispatch agencies and accepting entities saved a lot of insurancemoney which is pure profit to them. These phenomena of adverse selection and moralhazard are widespread in dispatch industry. These illegal behaviors pulled dispatchedworkers out of social insurance system. Although they seemed to be participated insocial insurance, they were excluded from the benefits and social insurance payments infact. Meanwhile, the social insurance policies are diverse in different provinces, toomany different policies lowered the overall level of insurance system and resulted indifficulties while transferring social insurance relations. Last but not the least, poorportability, poor system flexibility and unfairness of policy, etc. also impeded thesmooth development of social insurance and greatly harmed dispatched workers’ socialinsurance rights as well as interests.Through analysis of various social insurance problems in dispatch employments,combined with China’s current legislative situation and policy. It is necessary to adhereto the rule of law, the principle of fairness and efficiency, as well as the principle offlexibility and moreover to develop insurance system by improving legal system andsocial security system, innovating government management, and smoothing the mediasupervision channel. Some specific operational policies can be concluded as follows:First and foremost, draft Labor Dispatch Supplementary Regulations, give labordispatch a comprehensive definition, all responsibilities and obligations of labordispatch agencies and accepting entities should be clear enough; Second, revise LaborContract Law, distinguish traditional employment from non-traditional mode; Third,complete Social Insurance Law, add provisions that refer to non-traditional employees；Fourth, reforming the payment system, introduce incentive mechanism of insuring andon-time paying, establish a real transformable national social insurance system, makesure social assistance and social welfare system are useful for dispatched workers; Fifth,strict supervision of labor dispatch, introduce risk margin system and carry out filerecording and non-periodic supervision; Sixth, increase governments’ financial input,set up a governmental labor dispatch management department, reform the householdregistration system; Last but not least, smooth the media channel to disclosureemployers’ illegal behaviors, realize labor union’s rights protection function, make suredispatched workers enjoy every legal social insurance rights.