Outsource of labor tightened in China

China's recruitment agencies that help laborers work overseas will have to set up a security fund of at least three million yuan ($473,000) for possible evacuation and compensation during emergencies or if contracts fail, according to a new regulation.

A regulation meant to standardize overseas labor outsourcing, published on Monday, requires recruitment agencies to set up a separate bank account with at least three million yuan to evacuate employees during emergencies or to compensate workers when the agencies fail to carry out their obligations.

Increasing need of laborers overseas has helped promote employment, but has witnessed some illegal labor outsourcing, a statement released by the State Council's Legislative Affairs Office and the Ministry of Commerce said. It said the illegal practice has jeopardized the rights of workers and possibly led to mass incidents.