The contract system refers to short-term workers recruited by enterprises and institutions through signing contracts, also called the employment system.

Contracts are generally in written form and include time limits, tasks, and various obligations that both parties must abide by.

After the reform of China’s labor system in 1986, all types of workers recruited are generally contract workers.

On July 12, 1986, the State Council promulgated the "Interim Regulations on the Implementation of the Labor Contract System in State-owned Enterprises" and the "Interim Regulations on the Recruitment of Workers by State-owned Enterprises", which pointed out that enterprises should recruit workers in perennial positions within the national labor wage plan quota, except for

Unless otherwise specified by the state, the labor contract system shall be implemented uniformly.

Extended information: The company adopts the principles of open recruitment, voluntary registration, comprehensive moral, intellectual and physical assessment, and merit-based recruitment when recruiting contract workers.

Contract workers enjoy the same rights as permanent workers in their units to labor, work, study, participate in the democratic management of enterprises, and receive political honors and material encouragement.

The state implements a social insurance system for the retirement and pension of workers under labor contract systems.

Retirement and pension funds are paid by enterprises and workers under labor contracts. When retirement pensions are insufficient, the state will provide appropriate subsidies.

The fundamental purpose of implementing the contract labor system is to break the iron rice bowl and the big pot, truly implement distribution according to work, fully mobilize workers' enthusiasm for production, and improve the quality of enterprise workers.

There is a big difference in benefits between contract workers and non-contract workers.

The fundamental purpose of implementing the contract system has changed to a large extent after 2000. The fundamental purpose is to reduce the labor costs of enterprises and institutions.

After the promulgation of the new labor law, there are basically no non-contract workers in enterprises and institutions, and the treatment of contract workers is very different from that of regular employees in enterprises and institutions.

Another type of recruitment is the labor dispatch system.

The difference between labor dispatch and contract system is as follows: Labor dispatch: It means that the labor dispatch company signs a labor contract with the workers, and then dispatches the workers to work in the units that need labor. The enterprise needs to pay the labor dispatch company a certain service fee.

The labor contract relationship exists between the labor dispatch agency and the workers.

Contract workers: Contract workers refer to workers who sign a labor contract with the employing enterprise and have a labor relationship with the employing enterprise.