Under the change, employers will only be able to hire workers through agencies for temporary, auxiliary or substitute posts. But many multinationals have hired staff through agencies as a way of giving themselves greater flexibility. If forced to conform instead with the Labour Contract Law, they will be more likely to have to keep staff on their books on a permanent basis. Paul Hastings employment lawyer Gordon Feng says: ‘Companies can only terminate employees [on open-ended contracts] for specific reasons allowed by the law.’ Source: Financial Times
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