China: If the employer does not take effective measures to prevent and stop sexual harassment, the employer may need to pay economic compensation to the female employees when they resign.

Recently, Jiangsu Province released the Draft of the Special Provisions on Labor Protection of Female Employees (Hereinafter referred to as the “Draft”) to collect public opinions. The Draft pays close attention to sexual harassment and requires that employers should take measures to prevent and stop sexual harassment against female employees, including formulating company regulations, providing relevant training, and providing an anti-sexual harassment working environment, etc. The Draft specifically provides that if the employer does not take effective measures to prevent and stop sexual harassment, which results in the unilateral termination by the female employee, the employer shall pay economic compensation to the female employee. This Draft seems to be a signal that local governments are starting to pay more attention to the sexual harassment issue and may release more regulations to protect female employees from sexual harassment in the future.