The outsourcing mechanisms have developed to the point where various companies have taken it to a new level.
The more famous case is what Little Green Book did – having employees sign a contract with one company while the equity incentives were promised by another company.
This way, when firing employees, they don't have to issue the promised equity incentives.
Because the company that gives the incentives and the one that pays the salary are not the same.
Previously, Little Green Book used this rule to fire an employee without giving the promised equity incentives.
After the employee took the company to court, the court ruled that Little Green Book must compensate the employee.
However, Little Green Book outright opposed this ruling, arguing that the company responsible for issuing incentives was registered in Hong Kong Island, and mainland courts had no authority to enforce the judgment.
In contrast, Yiyang System's companies now basically do not use outsourcing.
