Withholding wages is a punishable crime
Amendment to criminal law targets malicious employers
Issue: May 2011
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criminal law amendment
withholding wages
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Runming
Avoid trouble by resolving wage payment disputes with employees through arbitration, say counsel.
On February 25 2011, the National People’s Congress promulgated the Amendment Act for the PRC Criminal Law (8) (中华人民共和国刑法修正案
(八)) (the Amendment), which will take effect on May 1 2011. Article 41 of this amendment addresses criminal liabilities for employers that fail to pay wages.
The Amendment stipulates that employers that withhold wages by means of transferring assets, going into hiding or simply refusing payment and failing
to heed government correction orders could be subject to criminal punishment. This includes fines or imprisonment,
or both.
Beijing-based Run Ming Law Offices partner, Gao Song recommends: “If a dispute involving payment of a large amount of wages arises between an employer and its employees, the employer should resolve the dispute through...
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