(Promulgated by the Dalian Municipal
People's Government on October 15, 1984)

 

SUBJECT: LABOR & EMPLOYMENT

ISSUING-DEPT: LIAONING PROVINCE

ISSUE-DATE: 10/15/1984

IMPLEMENT-DATE: 10/15/1984

LENGTH: 1454 words

TEXT:

[Article 1] These procedures are formulated in accordance with the Constitution, the pertinent laws and decrees of the People's Republic of China.

[Article 2] In the employment of staff and workers, Chinese-foreign joint ventures, cooperative enterprises and wholly-owned foreign enterprises (hereinafter referred to as enterprises) established by corporations, enterprises and individuals from foreign countries, and Hongkong and Macao (hereinafter referred to as investors) with their investments are required to adopt the contract system, under which labour contracts shall be signed between the enterprises and their staff and workers.  The labour contracts shall include the following terms:

Production or work tasks, labour remunerations, production or work schedules, holidays and paid leaves of absence, labour insurance and welfare benefits, safety measures in production and labour protection, labour discipline and provisions for awards and punishments, disposal of job-connected injuries, disabilities and deaths, conditions for the modification of the contract, and dismissal or discharge of the staff and workers, and other necessary provisions concerning rights and obligations.

The labour contracts shall be submitted to the relevant development zone labour management department for examination and approval.

[Article 3] In the development zone a Labour Service Company shall be established for the purpose of recruiting and training staff and workers for enterprises, providing guidance for staff and workers in the matter of the signing of labour contracts, setting labour service charges and taking the responsibility of regulating social labour security for the staff and workers.

[Article 4] The staff and workers to be employed by an enterprise may be recruited by the Labour Service Company on behalf of the enterprise, or may be recruited by the enterprise itself with the consent of the Labour Service Company.  The probation period for the newly recruited staff and workers shall be three to six months.  Employment procedures shall be handled by the Labour Service Company for probationers once they are accepted as qualified, and a certain amount of service fee shall be paid by the employers.  The staff and workers employed shall be managed in accordance with the provisions of the contracts and the business requirements of the enterprises.  In order to improve management of the enterprise and the technical proficiency of the staff and workers, special training may be carried out by the enterprises if the necessity arises.

The enterprises are not permitted to employ students in school and persons under the age of 16.

[Article 5] The enterprises shall pay labour service charges for each of the staff members and workers they employ, the rates for the labour service charges shall be set through discussion at the signing of the labour contracts according to the types of enterprises and job-classification.  The charges shall be adjusted every year according to the degrees of technical proficiency of the staff and workers, the margin of progression being from 5% to 15%.

[Article 6] The labour service charges shall be apportioned as follows: 70% shall go to the staff and workers as wages, to be paid directly to the staff and workers themselves, 25% shall be used for social labour security and as compensation for the various kinds of subsidies and allowances which the state provides for the staff and workers, and 5% shall be used by the enterprises to subsidize the welfare fund for their staff and workers.

[Article 7] The types of wages and systems of bonuses, subsidies, allowances, etc. for the staff and workers of an enterprise shall be determined by the enterprise itself, which shall file notice with the Labour Service Company in the development zone for that matter.

[Article 8] The basic workweek in the enterprises is limited to a maximum of six days and the basic workday to a maximum of eight hours (the work schedule for specified types of work shall be stipulated separately).  Overtime must be compensated by premium rates of pay together with payment of extra labour service charges.  The staff and workers in the enterprises are entitled to enjoy the public rest days provided by the State, official holidays and periods of leave as well as other rights and benefits stipulated in the contracts.

[Article 9] The enterprises must implement the rules and regulations of the Government of the People's Republic of China concerning labour protection and environmental protection, and ensure safety in production and civilized production.  The development zone Administrative Committee has the right to carry out inspection and supervision.

[Article 10] The enterprises shall implement special health protection for women workers in accordance with the provisions of the Government of the People's Republic of China and those of the local governments concerning the protection of women workers.

[Article 11] The enterprises shall not discharge their staff members and workers during the period of medical treatment and convalescence of job-connected injuries and occupational diseases, and women workers over six months in pregnancy or on maternity leave.

[Article 12] During the time period of the contract, if the staff members and workers ask for resignation, they shall submit applications to the enterprises one month in advance.  Those staff members and workers who have received more than three months training provided by the enterprises shall not be allowed to resign within one year after the completion of the training; if they insist on resignation or quit prematurely, they shall make compensation for the expenses the enterprise has incurred for their training.

An enterprise may discharge staff members and workers who become superfluous as a result of changes in production and technical conditions if they can not meet the requirements of production and they are not suitable for transfer to other jobs within the enterprise.  The enterprise shall pay a certain amount of compensation to the discharged staff members and workers according to the length of service in the enterprise : one month's personal wages for each full year's work, one month's personal wages for those who have worked for less than a year and one half of one month's personal wages for probationers.  Those who are discharged for the sake of the enterprise shall be paid three to six months' personal wages in addition to the dismissal compensation.

The above payment shall be made by the enterprise to the Labour Service Company of the development zone in one lump sum.

[Article 13] The social labour security fund shall be submitted and paid to the development zone Labour Service Company by the employing enterprises before the 15th day of each calendar month.  A surcharge shall be collected at the rate of 1% of the security fund per day for overdue fund payment.

[Article 14] The scope of and procedures for the use of the social labour security fund shall be determined by the development zone Labour Service Company.

[Article 15] The staff and workers in an enterprise have the right to establish trade union organizations and launch union activities.  The enterprise shall support the work of the trade union of the enterprise and the trade union shall support the management of the enterprise.

[Article 16] An enterprise shall file notice with the development zone Labour Service Company when it discharges staff members and workers who seriously violate the rules and regulations of the enterprise.

If the staff members or workers who have been discharged by an enterprise have objections, they are allowed to argue their cases against the enterprise; if the matter cannot be resolved through argument, they may request mediation or arbitration by the labour management department in the development zone; if either of the parties considers the arbitration award to be unfair, it may file a suit in the people's courts.

[Article 17] Matters such as the employment, awards and punishments, welfare, social labour security as well as dismissal and discharge of foreign staff members and workers and the staff members and workers from Hongkong, Macao and Taiwan on the payroll of an enterprise shall be decided by the enterprise and shall be separately provided for in the employment contracts.

[Article 18] The right to modify and interpret these procedures resides in the Dalian Municipal People's Government.

[Article 19] These procedures shall go into effect on the date of their promulgation.