1. JOINT EMPLOYMENT
Joint employment relationship may arise when there is a use of services provided by an employee between parent and subsidiary companies, affiliated companies, or other forms of connected companies. Companies using such services may be jointly liable for the salary and benefits of the employee.
While the concept of “joint employment” is not prohibited in mainland China, this has been recognized in Hong Kong. Corporate employers should take note of the potential liability arising therefrom.
In general, apart from the employment contract, the courts in both mainland China and Hong Kong take into consideration the surrounding circumstances of the employment such as the nature of the services provided by the employee, salary and benefits arrangement, and recruitment process in its determination of the establishment of a joint employment relationship. These are further discussed below.
