As dispatch agencies are often highly adept in hiring and managing workforces, businesses are more than happy to use an agency to manage part of their workforce as it saves time, money, and in case of foreign enterprise, the hassle of quickly understanding the legal workings of a local labor force.
After 1975, due to the rising demand of many enterprises, dispatched work agencies grew rapidly.
In 1980s, labor dispatching starting blossoming and developing in America, partly due to a high post-war employment rate.
With the rapid development and the stability of social environment, enterprises started to pursue the goal of maximum profits and minimum costs.
At the same time, enterprises also started to pursue a labor force that can adopt quickly to market variations.
In addition, according to the statistics of America Staffing Association, 90% of American enterprises used the services provided from labor dispatching industry.
In a short span of 12 years, the population of dispatched labor has grown six times, and it still kept increasing.
Because of the legislation of ILO Convention 181, it spurred big progress in the development of labor dispatching.
Dispatched work agencies send their regular employed workers to client enterprises to provide labor.
(2) Profit labor dispatched: This is the same as "regularly employed type" in Japan; however, there is no "register-type" in Germany.
[3] On 28 December 2012, the Standing Committee of the National People's Congress passed an amendment to the Labor Contract Law in China.
Labor dispatch is highly relied upon in China to staff companies, both domestic and foreign invested.
When promulgated in 2007, the Labor Contract Law compromised on this issue by intentionally leaving certain provisions ambiguous and general.