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New Chinese regulation focuses on reigning in HR and employment agencies (China Daily)

24 July 2023

China recently released its first regulation on the management of human resources agencies to tighten supervision of their operations and secure a safer job market for the public, reports China Daily, citing the Ministry of Human Resources and Social Security. The regulation applies to human resources agencies and organisations on the mainland, including those that collect and publish job information, offer human resources management consultation and employment or entrepreneurship guidance, and those that offer labour dispatching services. So, this legislation will capture the operations of both job boards and staffing firms. 

The regulation, which will take effect on 1 August, clarifies the legal liabilities of human resources agencies and organisations. For example, they should set up a job information management system to check the authenticity and validity of job information that employers offer, and they should suspend or terminate services when they find employers engaging in illegal employment behaviour.

In addition, HR agencies should not find jobs for children under the age 16. They also should not randomly transfer or falsify their licenses and offer job services to employers who lack lawful licenses. Under the regulation, HR agencies should protect job seekers' privacy and personal information to prevent such illegal behaviour as the theft and selling of that information. The agencies should not disturb market order by monopolization, unfair competition or harming the interests of the State and individuals in human resources training.

According to the ministry, China has about 63,000 human resources agencies  whose worker population reached 1.04 million as of the end of 2022. These agencies have offered 5,268 employers and 310 million people job-hunting services.

"I'm very glad to see the release of the regulation, which clarifies the administrative authorization, service standards and supervision of human resources agencies and platforms," said Guo Sheng, CEO of job board Zhaopin. Guo said that it's not uncommon to see companies' improper or illegal behavior encroaching on people's labor rights, and that makes enhanced management and legislative measures necessary in human resources services.