 |
|
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
TENTATIVE
PROCEDURES FOR LABOUR AND WAGE
MANAGEMENT IN ENTERPRISES IN THE GUANGZHOU
ECONOMIC AND TECHNOLOGICAL DEVELOPMENT ZONE
(Adopted
at the Guangzhou Mayor's Work Meeting on
March 6, 1985 and Promulgated for Implementation
by the Municipal People's Government on
April 9, 1985)
SUBJECT: LABOR & EMPLOYMENT
ISSUING-DEPT: GUANGDONG PROVINCE
ISSUE-DATE: 03/06/1985
IMPLEMENT-DATE: 04/09/1985
LENGTH: 1583 words
TEXT:
[Article 1] These Procedures are formulated in accordance with the labour rules and regulations of the People's Republic of China and the "Interim Regulations on Guangzhou Economic and Technological Development Zone."
[Article 2] In employing staff and workers, Chinese-foreign joint ventures and cooperative ventures, enterprises operated independently by investors and inland associated enterprises in the Guangzhou Economic and Technological Development Zone (hereafter referred to as "development zone") shall implement the contract system, and labour contracts shall be signed by the enterprises and their staff and workers. The enterprises shall manage their staff and workers in accordance with the provisions of the contracts. The labour contracts shall include the following terms: the employment; dismissal and resignation of the staff and workers; the period of the contracts and probation period; production (or work) tasks; labour service charges and provisions for awards and punishments; work schedules and holidays; labour protection; labour insurance and welfare benefits; and labour discipline, etc. The labour contracts shall take effect upon confirmation by the development zone labour management department.
[Article 3] In the development zone labour service company shall be established with the following functions:
(1) To assist the development zone enterprises and offices set up by investors in the development zone in recruiting staff and workers;
(2) To be responsible for training and giving guidance to staff and workers before their employment;
(3) To direct staff and workers in signing labour contracts with enterprises;
(4) To provide temporary workers to development zone enterprises;
(5) To organize and arrange employment for persons who are seeking employment in the development zone;
(6) To mediate disputes between workers and enterprises.
[Article 4] The staff and workers to be employed by a development zone enterprise may be recommended by the labour service company or recruited by the enterprise itself and shall be tested and accepted for employment in accordance with the principle of selecting the best qualified.
[Article 5] The staff and workers employed by a development zone enterprise shall be 16 years of age or older. The probation period will be one to three months.
[Article 6] Temporary workers shall only be employed by a development zone enterprise after approval by the labour department of the development zone. The employment period for temporary workers shall not exceed three months. If exceed three months, they shall be employed as staff and workers by contracts.
[Article 7] A staff member or a worker dismissed by a development zone enterprise before the expiration of his or her contract shall be given one months notice in advance and shall be paid compensation according to his or her length of employment in the enterprise. The standards for compensation are as follows:
For length of employment under ten years (including those under one year), one month's basic wage for each full year's work.
For length of employment over ten years, one and a half month's basic wage for each full year for the eleventh year and onwards.
[Article 8] Where before completion of their contracts, staff and workers of development zone enterprises, due to special circumstances, resign, they shall submit their resignations to the enterprise one month in advance and the enterprise shall permit such resignations, except where the contracts clearly stipulate that resignation is not permitted. Those staff and workers, who have received professional training provided by the enterprises, shall make certain compensation to the enterprise for the expenses incurred for their training.
[Article 9] A development zone enterprise may award, promote or increase the wages of those staff and workers, who have made much contribution to the production (or work) and may, in accordance with the seriousness of each case, impose the sanctions of warnings, demerits, wage reduction or even discharge against staff and workers, who violate the rules and regulations of the enterprise resulting in harmful consequences.
[Article 10] The standards concerning social labour insurance and welfare treatments for staff and workers of development zone enterprises during their period without any contracts, such as compensation payments for retirement and resignation, and extra allowances for living expenses whilst seeking for employment, will be set out by the development zone labour service (or insurance) company. Upon approval by the Administrative Committee of the Development Zone, such payments shall be made to the staff and workers. To provide the necessary funds, 20% of the gross pre-tax wages of staff and workers shall be drawn by the enterprises; and 2% of the basic monthly wages of staff and workers during their term of contract shall be collected.
These two kinds of funds shall be paid in by the enterprises to the development zone labour service (insurance) company.
After the termination of contracts, the workers shall transfer the insurance premium (including interest on bank deposits) after deducting the administration fee to the labour insurance company where the workers are residing.
[Article 11] The wage level of staff and workers in the development zone enterprises will be determined at 120% to 150% of the real wages of staff and workers of state-owned enterprises of the same trade in Guangzhou Municipality. Enterprises may adopt floating wages according to conditions of economic efficiency and labouring result of staff and workers.
The wage standards, the forms of wages paid, bonuses and subsidy systems for staff and workers of development zone enterprises are to be discussed and decided upon by the board of directors. When social consumer price index increases by more than 3%, the basic wages for staff and workers in enterprises shall forthwith be adjusted accordingly.
[Article 12] Development zone enterprises follow the six-day work-week and eight-hour work-day practice (the work schedule for special types of work shall be stipulated separately). Extra pay will be given to overtime work.
[Article 13] Development zone enterprises must implement the rules and regulations of the People's Republic of China concerning labour and environmental protection, and ensure safe and civilized production, and accept inspection and supervision carried out by the development zone labour administrative authorities.
[Article 14] Staff and workers of the development zone enterprises are entitled to China's stipulated rest days, holidays and leaves to visit relatives, or attend their own weddings or the funerals of their next of kin and to other rights and interests provided for in the labour contracts.
[Article 15] Injuries, disability or death of staff and workers, as a result of accidents in the development zone enterprises during their contract period, shall be handled by the enterprises in line with the labour insurance stipulations of the People's Republic of China; other labour insurance treatment shall be handled in accordance with the provisions stipulated in the labour contracts.
The welfare treatment of staff and workers in enterprises shall, in principle, follow the pertinent provisions concerning Chinese-foreign joint ventures and cooperative ventures in Guangzhou municipality. Enterprises with particularly good economic efficiency will be permitted, after paying tax, to raise the welfare treatment for their staff and workers. All charges stipulated in this Article shall be paid directly by the enterprises.
[Article 16] Staff and workers in development zone enterprises shall have the right to establish primary trade unions and to conduct union activities in accordance with the provisions of the Trade Union Law of the People's Republic of China and the Articles of Associations of the Trade Union of China. Trade union activities in Chinese-foreign joint ventures shall be conducted in accordance with Chapter 13 of the Regulations for the implementation of the law of the People's Republic of China on Chinese-foreign joint ventures. Union activities in Chinese-foreign cooperative ventures and enterprises operated independently by investors may also follow the aforesaid regulations.
[Article 17] Disputes occurring between parties to a labour contract should forthwith be resolved through mutual consultation. If it cannot be resolved by consultation, then either party or both parties may request mediation by the labour management department of the development zone. If either party considers the settlement by the labour management department to be inappropriate, it may within 15 days file a suit before the intermediate People's Court of Guangzhou Municipality. If it fails to do so within the prescribed time limit, the settelement (or agreement) shall be effective.
[Article 18] The labour management, wages, welfare, etc. of foreign staff and workers, and compatriots from Hong Kong, Macao and Taiwan, who are employed by a development zone enterprise shall be decided by the board of directors of the enterprise and shall also be stipulated for in their employment contracts.
[Article 19] These Tentative Procedures shall come into force on the date of promulgation.
