SUPPLEMENTARY REGULATIONS FOR THE IMPLEMENTATION OF
THE "SINO-FOREIGN EQUITY JOINT VENTURE LABOUR
MANAGEMENT REGULATIONS" IN BEIJING MUNICIPALITY

(Issued on March 20, 1986 By The Beijing Municipal
People's Government)

 

SUBJECT: EQUITY JOINT VENTURES

ISSUING-DEPT: BEIJING MUNICIPALITY

ISSUE-DATE: 03/20/1986

IMPLEMENT-DATE: 06/01/1986

LENGTH: 1812 words

TEXT:

These Supplementary Regulations are formulated in order to implement the State Council's "Sino-foreign Equity Joint Venture Labour Management Regulations", and the Ministry of Personnel and Labour's "Implementing Measures for the Sino-foreign Equity Joint Venture Labour Management Regulations".

(1) All Sino-foreign equity joint ventures within the limits of the Beijing administrative district must in all ways follow the "Sino-foreign Equity Joint Venture Labour Management Regulations", the "Implementing Measures for the Sino-foreign Equity Joint Venture Labour Management Regulations" and these Regulations.

(2) The labour utilisation plan of a joint venture will be decided by the Board of Directors of the venture and will be filed with the department in charge of the venture and the Municipal Labour Bureau.

(3) When a joint venture recruits employees from among the unemployed in cities and towns or from the peasantry, the recruitment shall be carried out according to the relevant provisions of the Municipal Government and the Municipal Labour Bureau.0 If a joint venture recruits employees from among those working at other units, or other units recruit from those working in the joint venture, the approval of the unit in which the workers are employed must be obtained.0 Should persons in existing employment be engaged without authorisation, their work unit has the power to demand the recacl of the said employees, as well as compensation for economic loss.

A joint venture may not recruit employees from schools, or graduates of colleges and universities, polytechnic schools or technical colleges who have yet to complete the five year period during which they are officially unemployable due to their non-compliance with State assignments upon graduation.0 Employment of cadres who have voluntarily resigned must be approved by the Municipal Personnel Bureau.

(4) When a joint venture recruits specialist technicians and management personnel from outside the city it must have approval from the Municipal labour Bureau or the Municipal Personnel Bureau in accordance with the administrative jurisdiction for workers and cadres.0 Those employed from outside the city may not transfer their registered permanent residence to the city, but they must apply for a temporary residence permit in accordance with the "Regulations of Beijing municipality on the Control of Registered Temporary Residents".0 On the fulfilment of the employment contract or its termination due to other reasons, the temporary residence permit shall be cancelled immediately and the person concerned must leave the city.

(5) During the term of a joint venture between a Chinese and foreign enterprise, the Chinese enterprise's workers shall be the first considered for employment by the joint venture, and the Chinese enterprise will make arrangements for any not recruited to be employed elsewhere.

(6) A joint venture may decide on a probationary period for those newly recruited and employed, but the period may not exceed six months.0 Should workers not qualify during the probationary period, those who were previously unemployed in cities and towns or who were peasants will return to their original neighbourhood, village or town of registered permanent residence and those previously employed will return to their original place of employment.

Where a joint venture recruits persons in existing employment, a set compensation charge shall be paid to the original unit during the probationary period.0 If compensation is not paid, the original unit has the right to refuse to take the worker back should that worker not qualify during the probationary period.0 The actual amount of compensation will be decided by discussion between the two parties, but may not exceed the equivalent of six months' pay at the worker's original unit.

(7) A joint venture will implement a labour contract system with contracts signed between the enterprise and individual employees.0 The contents of the labour contract will be decided by discussion between the joint venture and either the trade union of the joint venture or workers' representatives, and will be submitted to the Municipal Labour Bureau for examination and approval.0 Where a new joint venture is yet to establish a trade union or select workers' representatives, a provisional trial contract may be formulated by the joint venture to the Municipal Labour Bureau for approval.

(8) Employees dismissed by a joint venture who were originally appointed or assigned by the department in charge will continue to have work arrangements made for them by the said department in charge.0 Dismissed workers of a joint venture who were originally unemployed in cities or towns or who were in existing employment but who now have no unit to go back to will return to their original registered permanent address and renew their employment application, or a regional or county labour department may introduce employment or they may individually seek employment.0 Those who came from the countryside will return there.

(9) Employees dismissed during the contract term or who do not have their contract extended will be paid compensation according to the length of time worked in that joint venture.0 For less than ten years work one month's average actual wage will be paid for each year worked; those who have been employed more than ten years will receive one and a half months' pay for each year in excess of ten years; for six months but less than one year, one month's average actual wage will be paid; for less than six months, half a month's average actual wage will be paid.0 Employees who are dismissed because of changes in technological production conditions and those amongst the dismissed who suffer from a chronic disease may seek an additional payment of between three and six months equivalent of their average actual wage.0 The average actual wage will be calculated on the basis of the average actual wage during the three months of employment prior to dismissal.

(10) Where dismissed employees are concerned, compensation will be paid to the department in charge of the enterprise or the accepting unit should the department in charge make arrangements on their behalf or a unit agree to accept them.0 For those returning to their original registered permanent address, compensation will be paid to the local neighbourhood labour department which will in turn pay a standard of 50 yuan per month to the worker as an unemployment benefit until the total amount is used up.0 The benefit will cease from the date of re-employment.0 Leftover benefits in the local neighbourhood labour department fund may be given to other dismissed persons who are suffering particular hardship.0 For those returning to the countryside or who become self-employed, compensation may be given to the individual.

(11) The wage level for ordinary employees will be strictly implemented according to the "Sino-foreign Equity Joint Venture Labour Management Regulations" and will be 120%-150% of the average actual wage of employees in similar industries in Beijing.0 This will be determined by the joint venture Board of Directors in accordance with its economic results and details of the amounts so determined will be filed with the Municipal Labour Bureau.0 Payment will start from the month that operations begin.

During the establishment period, wages paid to joint venture employees will be the same as their original wage.0 If there are special circumstances requiring higher wages, approval must be sought from the Municipal Labour Bureau but the amount may not be greater than 20% above the wage paid in similar industries in Beijing.

The Board of Directors shall decide the wages of senior management of both the Chinese and foreign parties (General Manager, Deputy General Manager, Chief Engineer, Chief Economist, Chief Technician, Chief Accountant, Auditor and other equivalent positions) on the principle of equal pay for equal ability and contribution, and details of these determinations will be filed with the Municipal Labour Bureau.0 The actual wages of senior management on the Chinese side will be determined in accordance with the relevant provisions of the Municipal Labour Bureau.

(12) The joint venture will retain on a monthly basis an amount equivalent to 7.5% of the total wages of the Chinese employees to cover Chinese employees' medical fees; and an amount equivalent to 20% of the total wages of the Chinese employees, as the Chinese employees' every day labour insurance and welfare fund (including compensation for dismissal).

(13) The joint venture will retain on a monthly basis an amount equivalent to 20% of the total wages of the Chinese employees as old age pensions for the Chinese employees, to be saved in a special reserve account exclusively for this use.0 Detailed measures concerning its use will be determined elsewhere.

(14) The joint venture will retain on a yearly basis an amount equivalent to 1.5% of the total wages of the Chinese employees to cover the every day education expenses of the Chinese employees.

(15) The joint venture shall pay subsidies to the Municipal Finance Bureau, based on employee numbers and according to amounts determined jointly by the Municipal Labour Bureau, the Municipal Finance Bureau, and the Municipal Real Estate Bureau, to cover subsidiary foodstuffs, education, health and other subsidies.

The joint venture need not pay housing subsidies for that proportion of employees for whom it provides accommodation built and paid for by itself (not including communal dormitories).

(16) The joint venture must use the bonus and welfare funds' money taken from post-tax profit to pay bonuses and collective welfare for Chinese employees.0 The bonus fund may only be used for bonuses for special contributions or as a one-off bonus.0 A fixed amount of the bonus and welfare funds may be used to build or buy living quarters for Chinese employees.

(17) The employees of a joint venture are entitled to the official public holidays of the People's of China, public rest days, and holidays for visiting relatives, marriage, bereavement, family planning and maternity leave for female employees, etc.

Joint ventures shall strictly control the extension of employees' work hours and should it be absolutely necessary for extra hours or extra shifts to be worked overtime shall be paid.

(18) The management of labour in Sino-foreign joint ventures will be made with reference to these Regulations, except where there are other State regulations.

(19) These Regulations will be implemented under the supervision of the Beijing Labour Bureau, and any questions arising during their actual application shall be resolved by the Municipal Labour Bureau.

(20) These Regulations shall come into force on June 1, 1986.