By Lucy Lu, Huang Lu King & Wood Mallesons’ Commercial & Regulatory group
On July 25, 2016, the Ministry of Human Resources and Social Security issued Measures of Grading Evaluation of Compliance and Integrity of Enterprises’ Labor Protection (hereinafter referred to as “Measures of Grading Evaluation”). This grading evaluation of the compliance and integrity of labor protection will begin on January 1, 2017. The Measures of Grading Evaluation set out new requirements and implement an evaluation system for compliance with the law, and an enterprise classification system. The Measures of Grading Evaluation grades the compliance and integrity of enterprises’ labor protection in three classes A, B and C, and the class evaluation results will be added to the compliance file of the enterprise for at least three years. The Measures of Grading Evaluation specifies the circumstances that will be attributed to level C, and explicitly guides the conduct of the grading evaluation The measures are beneficial for supervision of businesses, standardizing enterprise behavior and building harmonious labor relationships. An enterprise will become a primary target of labor protection supervision in the event it is rated as level C, and the human resources and social security administrative departments will arrange meetings with the responsible person of the enterprise and urge the enterprise to comply with labor protection laws and regulations.
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