BIZCHINA / Labour

Provisions on the Labor Administration of the Enterprises of Foreign Investment

Updated: 2006-05-08 11:12

Article 20 The term of a labor contract shall be divided into fixed term, flexible term or taking the completion of a specific amount of work as a term.
In case a laborer has kept working in a same employing unit for ten years or more and the parties involved agree to extend the term of the labor contract, a labor contract with a flexible term shall be concluded between them if the laborer so requested.

Article 21 A probation period may be agreed upon in a labor contract. The longest probation period shall not exceed six months.

Article 22 The parties involved in a labor contract may reach an agreement in their labor contract on matters concerning keeping the commercial secrets of the employing unit.

Article 23 A labor contract shall terminate upon the expiration of its term or the emergence of the conditions for the termination of the labor contract as agreed upon by the parties involved.

Article 24 A labor contract may be revoked upon agreement reached between the parties involved through consultation.

Article 25 The employing unit may revoke the labor contract with a laborer in any of the following circumstances:
(1) to be proved not up to the requirements for recruitment during the probation period;
(2) to seriously violate labor disciplines or the rules and regulations of the employing unit;
(3) to cause great losses to the employing unit due to serious dereliction of duty or engagement in malpractice for selfish ends; and
(4) to be investigated for criminal responsibilities in accordance with the law.

Article 26 In any of the following circumstances, the employing unit may revoke a labor contract but a written notification shall be given to the laborer 30 days in advance:
(1) where a laborer is unable to take up his original work or any new work arranged by the employing unit after the completion of his medical treatment for illness or injury not suffered from at work;
(2) where a laborer is unqualified for his work and remains unqualified even after receiving a training or an adjustment to an other work post; and
(3) no agreement on modification of the labor contract can be reached through consultation by the parties involved when the objective conditions taken as the basis for the conclusion of the contract have greatly changed so that the original labor contract can no longer be carried out.

Article 27 During the period of statutory consolidation when the employing unit comes to the brink of bankruptcy or runs deep into difficulties in production and management, and if reduction of its personnel becomes really necessary, the unit may make such reduction after it has explained the situation to the trade union or all of its staff and workers 30 days in advance, solicited opinions from them and reported to the labor administrative department.
Where the employing unit is to recruit personnel six months after the personnel reduction 3/11 effected according to the stipulations of this Article, the reduced personnel shall have the priority to be re-employed.

Article 28 The employing unit shall make economic compensations in accordance with the relevant provisions of the State if it revokes its labor contracts according to the stipulations in Article 24,

Article 26 and Article 27 of this Law.

Article 29 The employing unit shall not revoke its labor contract with a laborer in accordance with the stipulations in Article 26 and Article 27 of this Law in any of the following circumstances:
(1) to be confirmed to have totally or partially lost the ability to work due to occupational diseases or injuries suffered from at work;
(2) to be receiving medical treatment for diseases or injuries within the prescribed period of time;
(3) to be a female staff member or worker during pregnant, puerperal, or breast-feeding period; or
(4) other circumstances stipulated by laws, administrative rules and regulations.

Article 30 The trade union of an employing unit shall have the right to air its opinions if it regards as inappropriate the revocation of a labor contract by the unit. If the employing unit violates laws, rules and regulations or labor contracts, the trade union shall have the right to request for reconsideration.
Where the laborer applies for arbitration or brings in a lawsuit, the trade union shall render him support and assistance in accordance with the law.

Article 31 A laborer who intends to revoke his labor contract shall give a written notice to the employing unit 30 days in advance.

Article 32 A laborer may notify at any time the employing unit of his decision to revoke the labor contract in any of the following circumstances:
(1) within the probation period;
(2) where the employing unit forces the laborer to work by resorting to violence, intimidation or illegal restriction of personal freedom; or
(3) failure on the part of the employing unit to pay labor remuneration or to provide working conditions as agreed upon in the labor contract.

Article 33 The staff and workers of an enterprise as one party may conclude a collective contract with the enterprise on matters relating to labor remuneration, working hours, rest and vacations, occupational safety and health, and insurance and welfare. The draft collective contract shall be submitted to the congress of the staff and workers or to all the staff and workers for discussion and adoption.
A collective contract shall be concluded by the trade union on behalf of the staff and workers with the enterprise; in an enterprise where the trade union has not yet been set up, such contract shall be also concluded by the representatives elected by the staff and workers with the enterprise.

Article 34 A collective contract shall be submitted to the labor administrative department after its conclusion. The collective contract shall go into effect automatically if no objections are raised by the labor administrative department within 15 days from the date of the receipt of a copy of the contract.

Article 35 Collective contracts concluded in accordance with the law shall have binding force to both the enterprise and all of its staff and workers. The standards on working conditions and labor payments agreed upon in labor contracts concluded between individual laborers and the enterprise shall not be lower than those as stipulated in collective contracts.
Chapter IV Working Hours, Rest and Vacations 
 


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