By Monique Carroll and Jessica Bounds King&WoodMallesons’ Melbourne office

Australia’s regulatory landscape is constantly changing and companies must stay ahead of the curve. In the anti-bribery and corruption space, a large number of legislative changes have been proposed which, if introduced, will significantly increase the level of vigilance required by companies. Continue Reading Anti-bribery and Corruption in Australia

By Susan Ning King & Wood Mallesons’ Commercial & Regulatory group

ning_susanThe reform and opening up in China has been a process of establishing and improving a modern market system. As this process deepens, “building a unified, open, orderly and competitive market” has become the goal of the market economy reform. The year 2017 is the second year of China’s 13th Five-year Plan, in which “market” and “competition” are the key points that cannot be overlooked. According to the Plan, establishment of a modern market system requires accelerating the development of a unified, open, orderly and competitive market, establishing mechanisms for ensuring fair competition, overcoming regional segmentation, breaking up industry monopolies, and removing market barriers in order to promote the free and orderly flow and equitable exchange of goods and factors of production [1]

The Plan obviously lays an unprecedented emphasis on the market’s fundamental role in resource allocation. Meanwhile, the government is taking or strengthening regulatory measures to control market disrupting risks, resorting to the law to ensure orderly operation of the market economy and to resolve externality problems of the market. Compliance issues regarding anti-corruption, employment, tax, anti-monopoly, and environmental protection are now under strict government supervision. Reinforcing the compliance system, therefore, by incorporating it into the “Now Normal” management mechanism is a path enterprises must take in their development. Continue Reading Compliance Challenges for Businesses in the “New Normal”

By Mark Schaub and Chen Bing King & Wood Mallesons’ Corporate & Securities group

schaub_m1On April 28, 2017, China Food and Drug Administration (“CFDA”) released for public comment a draft Opinion on the Further Strengthening of the Supervision of Health Food (“Draft Opinion”).

The Draft Opinion leans heavily on principles already set out in the new Food Safety Law and the Administration Measures on Registration and Filing of Health Food (“Administration Measures”) of 26 February 2016 but also does give a hint as to their current thinking in relation to health food registration and filing: Continue Reading CFDA Further Strengthen the Supervision of Health Food

BY Lucy Lu,Li Xin and Hang Ying. King & Wood Mallesons’ Commercial & Regulatory group.

陆慧文According to the PRC labor laws, an employer is obliged to ensure employee’s right to stipulated medical treatment period if an employee is suffering from illness.  In practice, when an employee goes to the hospital and seeks professional advice from a doctor, the doctor will take account of all factors concerning illness and health risks of the employee and then issue official medical certificate, with which the employee may apply for sick leave with the employer.  Accordingly, under this general sick leave application practice, if an ill-meaning employee is well acquainted with some doctors from the hospital who provides him or her with fake or improper medical certificate, the employee may apply for sick leave with the employer, an act deemed as unreasonable application for sick leave. What measures can an employer prepare to prevent the abovementioned situations from happening? And what measures can an employer take against the employee who has already enjoyed unreasonable sick leave? Below we recommend several tricks to employers for dealing with such occasions. Continue Reading How to deal with Employees’ Unreasonable Application for Sick Leave

By Yin Juquan, Zhang and Yuanhao. King & Wood Mallesons’ Commercial & Regulatory group.

yin_juquanReduction of an employee’s salary is often a consequence of the employer’s decision to demote the employee for some reason. However, the employer should refrain from meting out a pay cut arbitrarily. Usually, lawful pay cuts occur in two circumstances – when both employer and employee agree on it, or when the employer enforces it by law.

Pay cut agreement between employer and employee

Remuneration is a necessary clause of an employment contract. Article 35 of the Labor Contract Law provides that the terms and conditions of an employment contract may be modified if employer and employee agree so, and any modification must be made in writing. A pay cut derived from consultation and confirmed in writing is of course in accordance with legal requirements. Continue Reading Employers: Be Cautious with Pay Cuts

By LUO Ai and TANG Xiaojing  King & Wood Mallesons’ Commercial & Regulatory group.

luo_aiOn November 28, 2016, the Ministry of Human Resources and Social Security (“MHRSS”) issued the Notice on Several Issues in the Transfer and Continuation of Basic Pension Insurance of Urban Enterprise Employees (the “Notice”) clarifying several issues arising from the implementation of the Interim Measures for the Transfer and Continuation of Basic Pension Insurance of Urban Enterprise Employees(the “Interim Measures”) since 2010.

Regulations on Urban Employees’ Basic Pension Transfer and Continuation

Under the Social Insurance Law of the People’s Republic of China enacted in 2010, the basic pension fund should gradually be pooled at a nationwide level, and other social insurance funds gradually be put under provincial pooling. Currently, however, the basic pension fund is provincially pooled. Continue Reading New Rules for Basic Pension Transfer and Continuation

By Susan Ning, Han Wu, Yangdi Zhao   King & Wood Mallesons’ Commercial & Regulatory group.

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China’s national legislature on March 15, 2017 passed the General Provisions of the Civil Law (the “General Provisions”), the opening chapter of a civil code planned to be enacted in 2020.  The General Provisions were adopted at the closing meeting of the annual session of the National People’s Congress (NPC), with 2,782 of the 2,838 deputies present voting in favor.  It takes effect on Oct 1, 2017.

Article 111 of the General Provisions[1] stipulates the rules for the protection of personal data, which is believed to be one of the highlights of the General Provisions.  The protection of personal data was first included in Article 109 of the Second Draft of the General Provisions of the Civil Law (the “Second Draft”)[2] on October 31, 2016, aiming to curb the prevalent illegal collection, processing and trading of personal data in the Internet era.  Article 109 of the Second Draft provides that “[T]he personal data of individuals is protected by law.  Entities and individuals are prohibited from collecting, utilizing, processing, transmitting personal data illegally or supplying, making public or selling personal data illegally.” Continue Reading China’s Step Forward to Personal Data Protection

By Greg Golding and Natalie Caton. King & Wood Mallesons

golding_gcaton_nThe federal election interrupted a Senate inquiry into foreign bribery. The Australian Federal Police continue to investigate a number of allegations against Australian companies involving foreign bribery and the prosecutions in the Securency matter remain ongoing.

International efforts to combat foreign bribery continue with the first corporate settlements under the UK Bribery Act and the top ten US Foreign Corrupt Practices Act settlements now exceeding US$4.5 billion, all in recent years.

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By Neil Carabine and James Wilkison  King & Wood Mallesons Hong Kong Office

JNeiloint ventures must be properly structured and managed to ensure they do not breach Hong Kong’s new competition law. Agreements that breach the law may be declared void and participants may be fined up to 10 per cent of their annual turnover. It is therefore essential that companies assess new and existing joint ventures in light of the competition law. In this article, we provide tips on how to make sure your joint ventures comply with the Competition Ordinance.

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By Darren Roiser  King & Wood Mallesons’ London Office

Iakhtar_sn response to an unprecedented rise in the number of international sanctions and the increasing complexity of the restrictive measures imposed, recent years have seen corporates and financial institutions implement ever more advanced IT solutions to assist with sanctions compliance.

Indeed, enforcement authorities around the world now mandate the use of electronic screening and risk based compliance systems to ensure compliance and limit the risk of sanctions violations.

However, having spent many years putting in place robust compliance systems (at the centre of which are complex transactional and counterparty screening tools) businesses now seeking to deal with Iran face the prospect of having to unwind those same systems to take into account the fact that Iran may soon be open again for international business. Below we look at the impact that the lifting of sanctions may have on existing IT compliance infrastructure.

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