Eleven national departments including the National Development and Reform Commission and the Ministry of Transport released the Opinions that encourage employees to avoid the travel rush and stay put to celebrate the Chinese New Year holidays.
The PRC Employment Contract Law prescribes that the employer and employee cannot agree on liquidated damage borne by the employee unless for employee’s violation of service or non-competition obligation. However, the People’s High Court of Guangdong Province recently held the employee liable to pay liquidated damage for breach of confidentiality obligation.
Social Security The Chinese government has advanced the nation’s social security systems to include the basic pension insurance, basic medical insurance, work-related injury insurance, unemployment insurance and maternity insurance to protect the basic rights of citizens. These systems enable participating individuals to obtain assistance from the state (according and subject to certain conditions and procedures) […]
Brief Description of Employees’ and Employers’ Associations In China, all trade unions are under the leadership of the All-China Federation of Trade Unions (“ACFTU”). ACFTU is a national-level organisation that reports directly to the Chinese Communist Party and has branches at the provincial, city, and district levels. Technically speaking, an enterprise does not have to […]
Grounds for Termination PRC labour law generally favours employees and therefore contains many statutory provisions on termination of employment contracts that protect employees’ rights and interests. The statutory grounds for termination are: termination by mutual agreement; termination by employee; termination by employer; and automatic termination. Collective Dismissals If an employer intends to reduce its workforce […]
Employees’ Rights in Case of a Transfer of Undertaking When an employer decides major company matters that directly implicate the interests of employees, the employer should discuss such matters with the employee representative congress or its entire staff. It should only make a decision after consulting with the trade union or employee representatives. The consultation […]
Minimum Working Conditions The employment relationship established under the PRC employment laws and regulations is highly regulated. Employers are under a legal obligation to provide the minimum working conditions in the following aspects: i) labour remuneration; ii) rest and holidays; iii) working hours; iv) compensation for overtime work; v) contribution for social insurance; vi) payment […]
Minimum Requirements A written employment contract is necessary to establish a full-time employment relationship. However, a part-time employee, who works no more than 24 cumulative hours per week and four hours, on average, per day, is subject to different requirements and may be employed under an oral contract. The employer must execute a written employment […]
Definition and Types of Restrictive Covenants There is no express definition of restrictive covenants. Nevertheless, restrictive covenants are commonly used in practice. For example, an employment contract and a separation agreement may include an obligation not to violate the conflict of interest policy, confidentiality obligation, non-disparagement obligation, non-solicitation obligation and non-compete obligation. The following restrictive […]
Restrictions in the Workplace Employers in China may impose restrictions on employee’s electronic communications. The restrictive requirements are usually phrased as i) the electronic communication systems including the computers, Internet systems, telephone, voice mail and email systems provided to employees by the employer, shall belong to the employer and only be used for work-related purposes; […]