This article was written by King & Wood Mallesons’ Labor law group.
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We have split the explanation of Beijing’s Answers to Questions Concerning the Application of Law in Adjudication of Employment Disputes (the “Answers”) published on the 24th of April 2017 into three parts, so that the main provisions can be easily understood. This is the third in our series and starts from point 8 of the Answers. Continue Reading Summary of Beijing’s Answers to Questions About the Application of Law in Adjudication of Employment Disputes (Part Three)

This article was written by King & Wood Mallesons’ Labor law group.
jiang_junluliang_lindaxu_xiaodan

We split the explanation of Beijing authorities’ Answers to Questions of Law Application in the Handling of Employment Disputes published on 24 April 2017 into three parts, in order that the Answers’ main provisions can be easily understood. This is the second part of our explanation.

The circumstances constituting “major changes in objective circumstances” 

The Answers provides that“a major change in objective circumstances” means a change after the conclusion of an employment contract that could not be foreseen at the conclusion of the contract, and renders the employment contract or its main articles unenforceable, or makes continued performance result in unfair situations such as excessive cost, which will then in turn make the purpose of the contract difficult to be achieved. Continue Reading Summary of Beijing Authorities’ Answers to Questions of Law Application in the Handling of Employment Disputes (Part Two)

This article was written by King & Wood Mallesons’ Labor law group.
jiang_junluliang_lindaxu_xiaodan

On 24 April, 2017, the Beijing Higher People’s Court and the Beijing Employment and Labour Arbitration Commission jointly issued a document entitled Answers to Questions of Law Application in the Handling of Employment Disputes (the “Answers”), referred to as “Meeting Minutes 3” when it was being drafted and discussed. Attacking controversial issues head on, the ambitious Answers aims to harmonize rules applicable to difficult disputes, and was given high expectations at the outset. Continue Reading Summary of Beijing Authorities’ Answers to Questions of Law Application in the Handling of Employment Disputes (Part One)

By Lucy Lu, Ding Wu  King & Wood Mallesons’ Commercial & Regulatory group

陆慧文At the end of 2015, the Administrative Examination and Approval Reform Office of the State Council decided to integrate the Employment Permit for Foreigners (issued by the Ministry of Human Resources and Social Security) and the Foreign Expert Work Permit (issued by the State Administration of Foreign Experts Affairs) into the Foreigner’s Work Permit in China. This new policy has been implemented nationwide since 1 April 2017. Being more than just a simple combination of permits, the “Two-in-One License” reform realizes the unified management of foreigner’s employment in China. Below are highlights of the new policy.

Unification of the Certificate Name  Continue Reading New Policy on Foreigner’s Employment in China

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 Lucy Lu,  Lexina Li and Enya Yang King & Wood Mallesons’ Commercila & Regulatory group

陆慧文Annual leave is an important reflection of the right to rest granted by law to employees.  The introduction of the annual leave system has made the taking of holidays a hot topic amongst both employees and employers.

Mr. Zhang, a resident of Zhangjiang, Shanghai, quit his job on 10 March 2012. Four days later, on 14 March 2012, he commenced employment with a new company. For the following five years he worked relentlessly without taking annual leave. At the end of 2016, Zhang’s employers decided not to renew his contract. They refused to compensate him for the five years of annual leave he had accrued whilst working for them. Compensation that we say he is entitled to.

In this article, we answer questions around the implementation of paid annual leave using the case of Mr Zhang as an example.

Read full article, please click here.

by Linda Liang, Yuting Zhu King & Wood Mallesons’ Commercial & Regulatory group

梁燕玲Human resources are key to a company’s core competences. In Beijing, as the household registration quota is scarce, enterprises often attract employees by helping them obtain household registration. However, some employees have their own calculation, which is to leave their jobs as soon as they obtain the quota. Facing such a situation, what can enterprises do to protect their legitimate rights and interests? We will discuss this matter through a review and analysis of a case in Beijing.

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By Luo Ai , Xie Minru and Guo Xian King & Wood Mallesons’ Commercial & Regulatory group

luo_aiOccupational diseases are defined as the diseases employees suffer due to their exposure to toxic or harmful factors such as dust and radioactive substances as a result of occupational activities. Companies should be responsible for the prevention and control of occupational disease. However, in practice, many companies usually ignore it at first and eventually pay a high price when hazards in the workplace have led to serious illness. For example, an international high-tech supplier ignored occupational health management and broke the law by using toxic solvents between 2008 and 2009, leading to 137 employees of the company poisoned by the chemical n-hexane. After the incident happened, the company was not only liable to pay huge compensation to all the affected employees but also subject to several administrative penalties, including corrections within a prescribed time limit and a large amount of fine.

Read full article, please click here.