Jing Ren She Fa [2021] No.8

For the purpose of implementing "The Regulation of Beijing Municipality on Optimizing Doing Business Environment" and to continue to optimize the environment for doing business, the notification commitment system should be applied to the labor dispatch business license within China (Beijing) Pilot Free Trade Zone (hereinafter referred to as BFTZ) in accordance with the relevant requirements. Matters of relevance, such as the processes and working standards, shall hereby be notified as follows:

I. Scope of Application

Applicants who have registered under the Company Law of the People's Republic of China in the BFTZ or who have obtained a notice of pre-approval for the company name (hereinafter collectively referred to as the Applicants) may obtain the labor dispatch business license via the notification commitment system.

II. Licensing Authority

The Human Resources and Social Security Bureau of the district where BFTZ is located, the Social Affairs Bureau  and the Administrative Approval Bureau of Beijing Economic-Technological Development Area (hereinafter referred to as the Licensing Authorities) shall be responsible for the concrete work of licensing, verifying, and supervising labor dispatch business activity within BFTZ under their jurisdiction.

III. Specific Meanings

The Labor Dispatch Business License Notification Commitment System shall consist of four aspects:

(I) Notification: The labor dispatch business licensing authority of the district where BFTZ is located shall create and publish the Beijing Labor Dispatch Business License - Notification Commitment Letter, notifying the applicant of the conditions and materials required to apply for the Labor Dispatch Business License at one time and penalty measures for breach of the commitment.

(II) Commitment: The applicant shall voluntarily undertake to comply with the conditions of the labor dispatch business license, submit the materials as required, and bear the consequences of any breach of the commitment.

(III) Licensing: The applicant shall make a commitment and submit relevant materials to the licensing authority in accordance with the commitment agreement. The application materials submitted shall be complete and in the necessary legal form. The licensing authority shall decide whether or not to issue the labor dispatch business license on site.

(IV) Supervision: The licensing authority shall organize in-process and ex-post supervision of the commitment fulfillment of the labor dispatch operating units that have obtained the Labor Dispatch Business License according to the law.

IV. Procedure

(I) Submitting an application

The applicant shall submit the Application Form and the Beijing Labor Dispatch Business License - Notification Commitment Letter to the registration licensing authority. Power of Attorney must also be submitted by an agent if any entrusted by the applicant.

(II) Signing the commitment

After reading the Beijing Labor Dispatch Business License - Notification Commitment Letter, the applicant shall voluntarily sign the commitment letter, confirming understanding of the licensing authority notification and assuming relevant disciplinary measures in case of breach of the commitment. The Beijing Labor Dispatch Business License - Notification Commitment Letter shall be made in duplicate, one each for the applicant and the licensing authority.

(III) Review criteria

Licensing authority staff shall examine the materials submitted by the applicant.

1. They shall verify that the applicant's name, address, legal representative and other main information are consistent with that are found in the market regulatory registration information.

2. If there are errors in the application materials that can be corrected on site, the applicant shall be allowed to correct them on site; if the application materials are incomplete or fail to comply with legal requirements, the applicant shall be informed then and there of all the contents to be corrected and supplemented. The applicant shall resubmit the application once it has been corrected and supplemented.

(IV) Making a decision

1. After confirming that the application falls within the scope of the labor dispatch business license, and that the application materials are complete and legal, licensing authority staff shall decide on the issuance of the license on site, and the Labor Dispatch Business License shall be issued within half a working day in case of a positive decision.

2. The licensing authority rejecting the application shall issue the corresponding decision specifying reasons for the refusal and inform the applicant of the right to apply for administrative reconsideration or initiate administrative proceedings according to the law.

(V) Document delivery

To collect the license on site, the applicant shall then sign on the receipt of the licensing authority license. To receive the license by post, licensing authority staff shall record the mailing method on the license receipt record and affix the mailing credential.

(VI) Material filing

Licensing authority staff must file the materials submitted by the applicant for the labor dispatch business license and mark the licensing form as "Notification Commitment".

Materials to be filed include: the Application for Labor Dispatch Business License, the Beijing Labor Dispatch Business License - Notification Commitment Letter, Articles of Association, a financial audit report or capital verification report, a property certificate and lease agreement, a Power of Attorney for the entrusted agent, field verification records signed by the head of the licensing authority, etc.

V. Commitment Publicity

The licensing authority shall, within 7 working days after granting the applicant the labor dispatch business license via the notification commitment system, publish the list of licensed labor dispatch units and their commitment matters publicly  and update relevant information in real time on the web portal of the authority in accordance with the administrative license publicity regulations.

VI. Verification

(I) Verification authority. The licensing authority shall be responsible for verifying that the commitment is fulfilled by the labor dispatch unit.

(II) Field verification. For labor dispatch units that have obtained the labor dispatch business license via the notification commitment system, two staff members shall be arranged to verify the veracity and fulfillment of the commitment within three months of receipt of the Labor Dispatch Business License, and verification records must be well kept.

(III) Matters for verification

1. Availability of fixed operation premises suitable for the business activity;

2. Availability of equipment and facilities suitable for the business activity;

3. Compliance of a labor dispatch management system with the laws and administrative regulations that covers labor contracts, labor remuneration, social insurance, working hours, rest and vacation, labor discipline and other rules and regulations related to the interests of workers; samples of labor dispatch agreements to be signed with the actual employer.

VII. Strengthening in-process/post-process supervision

Administrative law enforcement inspections shall be strengthened, supervision carried out through "random selection of cases and inspectors and timely results publication", and violations investigated and punished in accordance with the law and in a timely matter. Regular inspections shall be conducted for labor dispatch units that have obtained the Labor Dispatch Business License for a year but have failed to report annual operation conditions or to carry out operation activities. Labor dispatch units that fail to report their annual operation conditions at all or in a truthful manner and are found to pose significant operational risks shall be made public. A management system for integrity classification, credit assessment, risk assessment or blacklisting of labor dispatch units shall be established, annual verification of labor dispatch units made public in accordance with laws and regulations, and disciplinary measures carried out in respect to dishonest subjects in accordance with laws and regulations.

VIII. Penalties for Breach of Promise and Trust

(I) If the labor dispatch unit fails to fulfill its commitment, the licensing authority shall order rectification to be made within a time limit stipulated by law. If it still fails to meet the conditions following the rectification, the labor dispatch business license shall be revoked.

(II) If the applicant makes false commitments, the labor dispatch business license shall immediately be revoked and the applicant treated as unlicensed operation of labor dispatch business.

IX. Publicity of Disciplinary Information and Credit Restoration

(I) Information concerning breach of promise and trust shall be uploaded to the Beijing Public Credit Information Service Platform. Information publicity standards, publicity time, as well as the conditions, channels, methods, deadlines and procedures for applying for credit restoration, shall be implemented in accordance with the Management Measures of Beijing for Notification Commitment Approval of Government Service Matters and relevant provisions of Beijing Municipal Bureau of Economy and Information Technology.

(II) Handling objections to credit notification. Should the applicant declare the information concerning breach of promise and trust published on the Beijing Public Credit Information Service Platform to be false or undeserving of publication, the applicant may file an objection in writing to Beijing Municipal Bureau of Economy and Information Technology, or apply in writing to the licensing authority.

(III) Credit restoration. The conditions, channels, methods, deadlines and procedures for credit restoration on the part of the applicant must be implemented in accordance with the Management Measures of Beijing for Notification Commitment and Approval of Government Service Matters and the relevant provisions of Beijing Municipal Bureau of Economy and Information Technology.

X. Job Requirements

(I) All licensing authorities shall take this work as an important measure for deepening the reform of "separating business licenses and administrative approvals", optimizing the business environment, implementing specifications and working processes, and ensuring the orderly advancement of the labor dispatch business license reforms.

(II) Licensing authority staff who abuse their powers, neglect their duties, or engage in malpractice in the handling labor dispatch business license notification commitment shall be dealt with in accordance with relevant laws and regulations.

XI. Miscellaneous

(I) The licensing authority shall deal with applicants not selecting the labor dispatch business license notification commitment system in accordance with the relevant provisions in the "Implementation Measures for Administrative Approval of Labor Dispatch License".

(II) Municipal and district human resources and social security departments shall improve the complaint reporting and handling mechanism and deal in a timely manner with complaints and reports related to the notification commitment system.

Situations and problems encountered by relevant districts in implementing the labor dispatch notification commitment system shall be reported to the Labor Relations Office of Beijing Municipal Human Resources and Social Security Bureau in a timely manner.

(III) This Notice shall be implemented from the date of issuance.

Beijing Municipal Human Resources and Social Security Bureau　

August 26, 2021

Annex 1 Application Form for Labor Dispatch Business License.docx

Annex 2 Power of Attorney.docx

Annex 3 Beijing Labor Dispatch Business License - Notification Commitment Letter.docx