Worker dispatching means that employment agencies dispatch temporary workers to customer companies which need them. Many foreign workers are dispatched by staffing agencies. To protect the rights of dispatched workers, there are various legal regulations such as set permitted time periods of each contract for temporary workers and specific responsibilities of the agencies.
On the other hand, contract business is different because it means that contractors deal with work contracted from outside companies using contract workers. To be a contract business, a contractor must directly instruct and supervise contract workers. Unlike worker dispatching, contract businesses have no regulations.
Quite a few contractors dispatch contract workers to the factories or offices
of customer manufacturing companies, apparently taking a contract business
form. This is called disguised contract labor. In most cases, companies
conduct disguised contract labor to avoid various limits on worker dispatching.
If contract workers are instructed and supervised by the bosses of these
companies, not the contractors, there is a possibility of disguised contract
labor. Disguised contract labor is in violation of the Worker Dispatching
Act and the Employment Security Act. Therefore, if someone declares the
violation to the Prefectural Labor Bureau, the Bureau can provide the customer
manufacturing company with guidance to directly hire the contract workers.