The answer first: one EOR or dispatch template cannot cover both markets
Mainland China has an explicit licensed labour-dispatch system. Singapore's principal routes are direct employment through a local entity, recruitment, HR consulting and project outsourcing. Singapore's Ministry of Manpower states that an EOR cannot apply for a work pass for a foreigner based in Singapore while that person works for an overseas company.
Mainland China: licence, permitted roles and the 10% cap
- Article 57 of the Labour Contract Law requires an administrative licence and at least CNY 2 million registered capital to operate labour dispatch.
- Articles 3 and 4 of the Interim Provisions limit dispatch to temporary, auxiliary or substitute roles and cap dispatched workers at 10% of the client's total workforce.
- Article 27 treats contracting or outsourcing in name as dispatch where workers are used in the form of dispatch. Daily task allocation, attendance and appraisal matter more than the contract heading.
What genuine service outsourcing looks like
The provider manages its own employees, determines the work method and replacement arrangements, and is assessed against scope, outputs and service levels. A client may manage objectives, risk and acceptance, but direct scheduling, attendance and performance management can pull the arrangement back toward dispatch.
Singapore: establish the employer and work-pass route first
- The Employment Act sets core rights and employer responsibilities around salary, hours, rest days, leave and termination; coverage should be checked by role and provision.
- Employers generally make CPF contributions for Singapore citizens and permanent residents.
- Foreign employees need work passes that match the real employer and work. The Employment of Foreign Manpower Act sets employer responsibilities for applications and ongoing management.
- MOM states that an EOR cannot obtain a work pass for a person based in Singapore but working for an overseas company. A company without local presence can consider an Enterprise Singapore representative office or ACRA incorporation.
A pre-contract checklist for procurement and HR
- In mainland China, does the contracting entity itself hold the licence matching the service?
- Do dispatched roles satisfy the three-natures test and remain below the 10% cap?
- For outsourcing, who manages people and is acceptance based on outcomes and SLAs rather than individual hours?
- In Singapore, who is the local employer and who owns Employment Act, CPF and work-pass compliance?
- Are cross-border personal-data purpose, minimum scope, retention and access documented?
Tech Alliance's service scope
In Singapore and Southeast Asia we provide IT and AI recruitment, executive search, IT project services, HR consulting and service outsourcing. In mainland China our licensed entity provides service outsourcing and labour dispatch where legally applicable, under licence 沪人社派许字第00471号 and HR service licence 沪人服证字[2015]第1700000523号. We identify the operating reality before selecting the contract model.
This article is general information, not legal, tax or immigration advice. Application depends on the role, headcount, employer entity, workplace and actual management model; obtain local professional advice for each project.