Useful Info

Legal dispatching refers to a permitted dispatching company, in accordance with the Act on the Protection of Dispatch Workers, etc. (Dispatch Act), hiring workers, maintaining the employment relationship, dispatching them to the user company, and having them provide labor under the direction and supervision of the user company. The tasks for which dispatching is permitted are specified by law as 32 types, including secretaries, typists, telephone sales representatives, drivers, bill collectors, building cleaners, etc. On the other hand, illegal dispatching refers to dispatching other than worker dispatching permitted by the Dispatch Act. Examples include formally entering into a subcontracting contract but actually dispatching workers (in the form of disguised subcontracting), a permitted dispatching company dispatching workers to tasks outside the permitted dispatching industries, or the user company that received dispatched workers re-dispatching them (double dispatching), and so on. The illegal dispatching that has recently become problematic occurs under disguised subcontracting. Originally, subcontracting is 'a contract where one party (service company, subcontractor) promises to complete a certain task, and the other party (ordering company, prime contractor) promises to pay remuneration for the result of that task (Civil Act Article 664).' However, service or subcontracting companies that formally enter into subcontracting contracts, without independent business capabilities, only hire workers, receive subcontracting fees, pay wages, etc., while the ordering or prime contractor company decides working conditions, directs and supervises tasks, etc., effectively acting as the actual user company, resulting in de facto illegal dispatching. To avoid dispatching under the Dispatch Act, they borrow the form of 'subcontracting' to use workers and avoid responsibilities under the Labor Standards Act, Trade Union and Labor Relations Adjustment Act, and other labor laws regarding those workers, which is causing problems. The lack of punishment provisions for user companies that receive illegal dispatching, or the absence of laws that specifically and directly regulate illegal dispatching, such as deeming direct employment contracts between illegally dispatched workers and user companies, are also factors fostering illegal dispatching.