Employment regulations may prove a burden for employers
Companies had been expecting clarification from China’s Implementing Regulations for its Employment Contract Law in September. But many of the more ambitious provisions remain unsolved.
Date:
October 2008
Keywords (click to search): [Guangdong] [Labour] [Labour Contract Law] [Employment] [PRC Employment Contract Law] [severance pay] [wages] [employers] [workers]
By Joanna Law
The State Council passed the Implementing Regulations for the PRC Employment Contract Law on September 18 2008. The regulations aim to clarify uncertainties contained in the Employment Contract Law1 issued on January 1. These include the lack of guidance on employee contracts and unclear definitions regarding temporary workers. Many lawyers welcome the fact that the new regulations offer guidance on how the double salary penalty should be applied to employers, and the definition of employers. But they note that the regulations only partially clear many of the ambiguities inherent in the earlier law.
“It’s in line with what we were expecting but not in line with what we were hoping,” says Matthew Durham, a consultant at Simmons & Simmons.
The final version of the Implementing Regulations fails to address a number of key issues including the definition of professions in the training agreement, the procedure for the...
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