Before Decree 55/2013 which were issued last week, there are no regulations on secondment services (or “employee leasing services”). However, from July 2013, secondment services are subject to quite comprehensive regulations. Initial reading of the regulations indicate that the requirements under Decree 55/2013 may make it more difficult for a company to restructure its workforce to save costs. Some salient points of Decree 55/2013 are as follows:

• Secondment services can only be used or provided in 17 kinds of jobs including translators, admin staff, sale assistance, project assistance, repairs, finance and tax, customers services, bodyguards, mechanics, production of telecommunication equipment, document prepration, and drivers.
• A company can only receive secondees from secondment service suppliers if (1) it needs to satisfy temporary needs for human resources in a short time, or (2) it needs to replace employees who are on long term leave due to pregnant or job accident, or (3) it needs high skill employees.
• A company cannot receive secondees from secondment service suppliers if (1) there is an ongoing employment dispute at the company’s premise, or (2) it hires secondees to replace employees who are fired on the ground of internal restructuring or economic reasons.
• The term for a secondment must not exceed 12 months and cannot be renewed.
• A secondment service supplier will need a special permit issued by the Ministry of Labour, War Invalid and Social Affairs. Conditions for obtaining the special permit include (1) minimum paid up capital, (2) evidence of long term office use, and (3) deposits to be made to the authority.
• A foreign investor appears may set up a joint venture (but not wholly-foreign owned) secondment service supplier with a local company.