Abstract: This paper sorts out the characteristics of labor outsourcing in accordance with relevant local laws and judicial cases, and by comparing the distinguishing features of labor outsourcing and labor dispatch, finds out that the keys to make a distinction between labor outsourcing contract and labor dispatch contract lie in the subject matter of contract, the settlement method and the ownership of direct management right. By analyzing a typical case of labor outsourcing, it is concluded that clear contractual stipulation and thorough management mechanism can effectively cut down the risk and improve the quality of labor outsourcing. Starting with the necessity of labor outsourcing, this paper suggests that the legislature or government departments should issue relevant laws and/or regulations to make systematic provisions on non-typical labor relations.

Key words: labor outsourcing, labor dispatch, independence