Could Labour Rules Apply to Foreign Labourer?

In  every labour contract, there are statutory clauses and promissory clauses. The statutory clauses shall be stipulated  in accord with labour law, and the promissory clauses could be stipulated by contractual parties with free will as long as they don’t violate other laws in China.

The difference  between Chinese labourer and Foreign labourer when concluding a labour relation in China is the foreign labourer has more promissory areas. Due to statutory rules are used to protect labourer, the Chinese labourer is protected more.

Statutory areas for Chinese labourer Statutory Areas for foreign labourer
National Rules Shanghai Rules
Minimum Wages
Working Time ×
Rest and Vacation
Safety and sanitation
Social insurance ×
Arbitration and Litigation
Termination and Revoke of labour contract × ×
Compensation × ×
Probation Period × ×

*When I talked about statutory areas,  I don’t mean the entire area is statutory, it’s just there are certain rules in this area shall be complied with. For example,  about the working time, the law just draws up the maximum working hour per day and per week, any agreement lower than this maximum limitation is allowed.

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Applicable Labour Rules

National Rules and Loacal Rules:

The labour rules in China are a big family. There are national rules which could apply to entire China, and also there are local rules which only apply to local labour relation.  Sometimes, the local rules may conflict with national rules. Even according to legislation  law, we shall apply to national rule when there are conflicts, the local authorities prefer local rules.

New Rules and Old Rules

Due to there are a lot of revolutions of labour law in China,  we shall know which rules are applicable—new rules or old rules?

New rules are only apply to the labour relations  after they are promulgated.

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Part Time (Non-Full-Time) Labour Relation

Part Time labour  is also governed by labour contract law, but it is quite different from full time labour:

  • The working hour system of part time labour:

1. The remuneration is generally calculated on hourly basis;

2. The average working hours of a worker per day shall not be more than four hours and the cumulative working hours per week for the same employer shall not be more than 24 hours; CONTINUE READING…

Posted in Basic Concepts, Insurance, Probation Period, Termination and Revoke of the Labour Contract, Wages, Working Hours, Rest and Vacation | Comments Off

The Importance of Recruitment Requirements

You all know from my last post that the employer could cancel the labour contract during probation period if the employee could not satisfy the recruitment requirements. However, satisfying the recruitment requirements is not equal to capability of doing one’s job.

Recruitment requirements are the requirements illustrated in recruitment advertising,  not some requirements the employer could come up with  during the probation time. Thus, don’t try to  fire any employee by reason of incapability of doing one’s job unless this reason  is stipulated in your recruitment advertising.

Unfortunately, the enterprises always ignore the importance of recruitment advertisement. I have to suggest that the more concrete the recruitment ads are, the better it will be.

Posted in Probation Period, Recruitment | 1 Comment »

Could the Employer Cancel the Labour Contract Wilfully During Probation?

Most of the enterprises think they could fire the employee during probation period if they can prove this employee is not qualified for this job , however, this is a misunderstanding of the Labour Contract Law.

Actually, according to Labour Contract Law, the employer could only cancel the labour contract when the following circumstances occurred:

  1. the employee  has been proved not to satisfy the recruitment requirements during the probation period;
  2. the employee  is in serious violation of the bylaws of the employer;
  3. the employee  causes any severe damages to the employer due  to his grave negligence to duties or seeking private benefits;
  4.  the employee establishes a labor relationship with other employers at the same time and may seriously influence his completion of the work in this entity, or he refuses to make a correction after the employer has pointed it out;
  5.  If the employee concludes or modifies, by way of deception or coercion or taking advantage of the other employer’s  difficulties, makes the employer to conclude or to make an amendment of a labor contract that is contrary to that employer’S true will,  the labour contract is invalidated.
  6. the employee  is subject to criminal liabilities according to law.
  7.  The employee  falls ill or is injured for a non-work-related reason, and is not able to bear the original post after the expiration of the medical treatment period as prescribed, nor can he assume any other position as arranged by the employer.
  8. The employee  is incapable of doing his job and remains so upon training or upon adjustment to his post.

If the employer terminates the labor contract during the probation period, it shall make an explanation to the employee.

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Cancellation and Termination of Labour Contracts

There are several ways to end a labour contract:

  1. Cancelled by one party  or both of them.

(1)   Employer and Emloyee both agree to cancel the labour contract.

An employer and a worker may cancel the labor contract upon consensus by consultation. CONTINUE READING…

Posted in Termination and Revoke of the Labour Contract | Comments Off

Paid Annual Leave

            Annual leave is the holiday with salary.  During Annual leave, the employee shall be paid just the same as normal working days.

  • Which kind of employee could ask for paid annual leave?

The employee who has been working for a consecutive period of more than one year shall be entitled to paid annual leave.  This is a fundamental requirement for annual leave.

It’s no doubt that working with one employer for  more than one consecutive year could meet the requirement of annual leave. Furthermore, it’s also acceptable the employee works with more than one employers for more than one consecutive year, if there is no time gap among different employers.

However, due to the regulation is somehow vague,  it’s controversial when there is time gap of changing  job.

  • Which kind of employees could not claim for annual leave?
  1.  The employee already has summer or/and winter vacations which are longer than annual leave.
  2.  The employee has accumulatively taken more than twenty days of casual leave and the employer hasn’t reduced his/her wage level thereof in accordance with the regulation.
  3.  The employee with service period of one full year but less than ten years has accumulatively taken more than two months of sick leave.
  4.  The employee with service period of ten full years but less than twenty years has accumulatively taken more than three months of sick leave.
  5. The employee with service period over twenty years has accumulatively taken more than four months of sick leave.
  • How long the annual leave would be?
Cumulative working years Paid annual leave
1 year ≤years <10 years 5 days
10 year ≤years <20 years 10 days
≥20 years 15 days
  • the definition of  cumulative working years

The cumulative working years includes the working time with the employee’s current employer and his/her  past employers.

Posted in Working Hours, Rest and Vacation | Comments Off

Sick Leave Wages

For the sick leave wages, the law and regulation only established the minimum amount, so the emloyer could pay more if they want to.

Under national law, the minimum amount of sick leave wages is  80% of the minimum wages required by local regulation.

However, the minimum amount of the sick leave wages in Shanghai is fluctuant. The way to caculate the minimum amount is a little complicated.

  • Caculation Formula: sick leave wage=wage base * coefficient
  • The range of minimum amount: 80%*local minimum wage≤minimum amount of sick leave wage≤ average wage of last year

Thus, when sick leave wage caculated by the  formula above  is higher than the average wage of last year, the employer could choose the average wage as sick leave wage.Bounce House

  • Wage base ≥local minimum wage

Where the wage is setforthed in labour contract, the wage is wage base; where the wage is not stipulated in labour contract, the wage base is equal to 70% of the normal monthly income.

  • The coefficient depends on the years of working and the length of the sick leave has been taken
Years of consecutive service(social working experience) coefficient
 If the employee consecutively  takes leave of  less than 6 months < 2 years 60%
2–4 years 70%
4–6 years 80%
6–8 years 90%
> 8 years 100%
If the employee consecutively  takes leave of more than 6   months < 1 year 40%
1–3 years 50%
> 3 years 60%
Posted in Wages, Working Hours, Rest and Vacation | Comments Off

The Length of Medical Treatment Period in China

The sick leave system is established for employees who are suffering from illness or non-work-related injuries. During the  medical treatment period, an employer shall not terminate the labour contract and must pay for the sick-leave wage. CONTINUE READING…

Posted in Working Hours, Rest and Vacation | Comments Off

China’s Official Holiday System

1.  Official Holidays for all the citizens in China:

  •  a one-day holiday on New Year (January 1)
  •  a three-day holiday on Spring Festival ( The lunar New Year’s Eve, lunar New Year’s day and lunar  January 2) CONTINUE READING…
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Posted in Working Hours, Rest and Vacation | 1 Comment »

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