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World – Impact of recent legislation on temporary recruitment

28 July 2014

As part of Staffing Industry Analysts’ annual survey of buyers of contingent labour, we asked temporary staffing procurement professionals about the impact of legislation on their use of temporary workers.

Overall, buyers seemed mildly receptive to amendments to the Chinese Dispatch Law. However, this change in legislation seems to have a more polarising effect than many of the other laws in our sample, as 19% of respondents replied that the law would greatly decrease their use of temporary workers and 34% suggested that the law would increase their use of temporary workers.

Buyers in our survey seem to be generally unaffected by the amendments to the Australian Migration Regulations 1994, as 71% replied that the law would have “not much effect”. The Migration Regulations were amended to accommodate non-citizens working in the offshore resources industry. From 29 June 2014, non-citizens working offshore will be required to hold a permanent visa or a visa prescribed by the Migration Regulations 1994.

Relatively few buyers in our sample responded to our question regarding the South African Employment Services Bill. Of those that responded, the overall response was neutral. The bill makes the Labour Department responsible for providing public employment services free of charge to unemployed South Africans, and matching jobseekers with employment opportunities in the private sector.

Buyers responded that the Japanese Dispatch Law would lead to a net decrease of temporary worker use in Japan. Only 12% of respondents indicated that the law would increase their use, compared to 38% of respondents who suggested it would decrease their use. The revised law came into effect in October of 2012. Notably, one feature of the law prohibits staffing firms from sending workers on assignments for less than 30 days.

Results are based on the findings of our 2014 Contingent Buyers Survey, conducted in April 2014, and reflect the opinions of buyer respondents from 239 large (1,000+ employee) companies. We have produced a number of reports based on this survey including information about buyers’ international presence, recruiting difficulties and best advice for recruiting and retaining former employees.

These are available to members only. If you are not already a member, and are interested in finding out more, please contact Richard Thorne