Short-term workers recruited by enterprises and institutions through signing contracts. Generally speaking, a contract is in written form, including time limit, tasks and obligations to be performed. All kinds of workers recruited after the reform of employment system in China from 65438 to 0986 are generally contract workers. On July 1986 and 12, the State Council issued the Interim Provisions on Implementing the Labor Contract System in State-owned Enterprises and the Interim Provisions on Recruiting Workers in State-owned Enterprises, pointing out that enterprises should recruit workers in perennial positions within the indicators of the national labor wage plan, and the labor contract system should be uniformly implemented unless otherwise stipulated by the state. Enterprises employ contract workers on the principles of open recruitment, voluntary registration, comprehensive assessment of morality, intelligence and physique, and merit-based employment. Contract workers and regular workers in their units enjoy the same rights to work, work, study, participate in the democratic management of enterprises, and obtain political honor and material encouragement. The state implements a social insurance system for workers' retirement and pension under the labor contract system. Retirement pension funds are paid by enterprises and employees who sign labor contracts. When the retirement pension is insufficient, the state gives appropriate subsidies. The fundamental purpose of implementing the contract system is to break the iron rice bowl and pot rice, truly implement distribution from each according to his ability, fully mobilize workers' enthusiasm for production, and improve the quality of enterprise workers.

Enterprise formal workers = contract workers

In government agencies and units, contract workers have no state establishment, and formal workers have state establishment. There are also great differences in welfare benefits.