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The State Council has issued new implementation rules for China’s employment contract law. This is the government’s latest effort to clarify certain key issues that have drawn significant criticism among lawyers and employers.
Matters covered in the Implementation Rules of PRC Employment Contract Law include the clarification of double salary penalty and definitions of an employer and partnership organisations and foundations.
Linda Liang, partner at King & Wood, said that the new rules, which were promulgated on September 18 2008, are helpful and have provided clearer guidance and definitions. “The Implementation Rules are now more detailed and are in line with the draft and the Employment Contract Law,” she said.
However, there are still ambiguities in the Implementation Rules. Local authorities will need to interpret and clarify any of the remaining uncertainties according to their local needs, Liang said.
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