IMPLEMENTATION PROVISIONS OF NINGBO MUNICIPALITY
ON LABOUR MANAGEMENT FOR SINO -FOREIGN JOINT
VENTURES

(Adopted June 15, 1985 by the 14th session of
the Standing Committee of the 6th People's
Congress of Zhejiang Province)

 

 

SUBJECT: LABOR & EMPLOYMENT

ISSUING-DEPT: ZHEJIANG PROVINCE

ISSUE-DATE: 06/15/1985

IMPLEMENT-DATE: 06/15/1985

LENGTH: 2267 words

TEXT:

[Article 1] The present Provisions are formulated in accordance with the State Regulations on Labour Management for Sino-Foreign Joint Ventures and also in the light of the realities of Ningbo Municipality.

[Article 2] The Labour Management Bureau of Ningbo Municipality is the authority for labour management for Sino-foreign joint ventures (hereinafter referred to as joint ventures) established in the Urban District of Ningbo Municipality.

The labour management branches of the Economic and Technological Development Zone of Ningbo Municipality is the authority for labour management for the joint ventures established in the said Zone.

[Article 3] The labour plan of the joint ventures should be decided by their board of directors and filed with the authorities in charge of joint ventures and the authorities for labour management.

[Article 4] Staff and workers (including engineers, technicians, administrative personnel and workers) required by a joint venture may be recruited, in accordance with the labour plan, from the people of the urban area of Ningbo who are either waiting for employment or already employed elsewhere in the city. Approval should first be obtained from the labour management authorities of Ningbo Municipality when the range of recruitment extends to the rural area or places outside the said Municipality.

Staff and workers recruited from places outside Ningbo Municipality are not eligible, during their probationary period, for registration in Ningbo for permanent residence and food supply rations. Similarly, the permanent residence and food supply rations of staff and workers recruited from the countryside should not be changed into those of the urban area.

In the event of a joint venture being established between a local enterprise and a foreign party, the local enterprise shall enjoy priority in the recruitment of staff and workers required by the joint venture from its original employees. The staff and workers of the original enterprise who are not recruited should be assigned other work by the authorities in charge of the original local enterprise.

With the approval of the board of directors, the foreign party of the joint venture may recommend several Chinese engineers, technicians or administrative personnel who are qualified and capable of meeting the requirements of the joint venture.

[Article 5] The staff and workers of a joint venture, whether recommended by the local labour service company or recruited by the joint venture itself with the consent of the labour management authorities, must all be tested and selected for employment on the basis of their qualifications and this information filed with the labour management authorities.

[Article 6] A joint venture should implement a training program for their employees with a view to constantly improving the quality of their work.

[Article 7] In employing staff and workers, a joint venture should implement the labour contract system. The contract may be signed either between the joint venture and the employees individually or between the joint venture and the trade union collectively. Both parties should comply with the terms of the signed contract.0 No party can amend the contract without the consent of both sides. The contract should be filed with both the authorities in charge of the joint venture and the authorities for labour management.

A labour contract should include the following terms: employment, dismissal and resignation of staff and workers, production and work responsibilities , wages, awards and penalties, work schedules and holidays, labour insurance and welfare, labour protection, labour discipline, duration of the contract, the conditions for alteration and termination of the contract and the rights and obligations of the joint venture and its employees.

[Article 8] Staff and workers of a joint venture may be given a probationary period ranging from three to six months. Those who fail to qualify during the probationary period may either be given an additional period for probation or returned to where they came from. The additional probationary period given to such people should not exceed six months.

[Article 9] A joint venture may employ temporary workers with the approval of the labour management authorities in the event that its production so demands. The period of employment of temporary workers should not exceed six months. When a longer period is required the joint venture should employ them as employees under the said contract system in accordance with the provisions of Article 7.

[Article 10] A joint venture may dismiss, within the duration of the labour contract, staff and workers who become superfluous and cannot be reassigned within the joint venture enterprise as a result of significant changes in production or technology or of other reasons. The trade union should be consulted, and a month's notice should be given to the employee before the said employee is dismissed. The dismissal should also be filed with the authorities in charge of joint ventures and the labour management authorities. An employee who fits into one of the following classifications should not be dismissed:

(11) An employee who is under medical treatment or convalescence because of an industrial injury or occupational disease;

(21) An employee who is under medical treatment;

(31) An employee who is on pregnancy or maternity leave.

[Article 11] A joint venture should pay, as compensation, staff and workers who are dismissed within the duration of the labour contract as well as those who leave the joint venture upon the expiration of the contract, according to the length of employment with the enterprise. One month's average wage should be paid for each full year's work and one and a half month's average wage should be paid for each full year's work from the eleventh year on for those staff and workers whose period of employment is over 10 years.

[Article 12] When, during the duration of the labour contract, staff and workers of a joint venture submit their resignation with legitimate reason(s) to the joint venture through the trade union, the joint venture, unless otherwise specified in the labour contract, should grant permission for the resignation.

The staff and workers who have received training provided and financed by the joint venture and resign within the duration of the contract should, in accordance with the provisions of the labour contract, reimburse the enterprise a certain amount in compensation for the training expenses.

[Article 13] The wage levels of staff and workers of a joint venture should be fixed at the beginning of the establishment of the joint venture, at 120% of the real wages of staff and workers of State-owned enterprises in the locality in the same line of business.

The real wages of staff and workers of State-owned enterprises in the same Municipality sharing the same line of business will be clarified and published annually by the Labour Management Bureau of Ningbo Municipality .

A joint venture should increase annually the wages of their staff and workers vis-a-vis the corresponding increase of the enterprise's profits and the improvement of the workers' skill and efficiency.

[Article 14] The wage system in terms of wage structure, bonuses, subsidies, etc., for staff and workers of a joint venture should be decided by the board of directors.

[Article 15] In the event that a joint venture has its Chinese staff and workers take part in the labour insurance scheme, the joint venture should pay a monthly premium amounting to 25% of the total wages of the Chinese employees to the local China People's Insurance Company or another insurance company officially approved. The premium is to be used to cover pensions, medical treatment expenses, funeral expenses of the retired staff and workers, pension for directly-related family members who rely upon them before their death and grant-in-aid during the time they are dismissed and seeking re-employment.

A joint venture should bear all the following expenses: medical treatment expenses, grant-in-aid, funeral expenses and pension for the directly-related family members who rely upon the staff and workers who are injured, maimed, killed or suffering occupational diseases while on duty. The standards for these payments should be fixed in accordance with those of the State-owned enterprises.

[Article 16] The regular expenses for welfare services,including those for canteen, kindergarten, clinic, bathhouse, etc., should be borne by the joint venture.

[Article 17] A joint venture should pay the local financial organ the price and rent subsidies granted by the State to staff and workers. The amount of such subsidies will be clarified and published annually by the Ningbo Municipality Bureau of Finance.

A joint venture which provides housing, either by building or through purchase, for its staff and workers may, in accordance with the number of those whose housing problem has been resolved, accordingly obtain exemption from paying the said rent subsidies to the State accordingly.

[Article 18] A joint venture should establish bonus and welfare funds for its staff and workers from its after-tax profits. The trade union of the joint venture may be entrusted to handle the use of the welfare fund for the employees' collective welfare.

[Article 19] Matters such as employment, dismissal, resignation, remuneration, awards and penalties, welfare and social insurance for foreign administrative personnel, technicians and skilled workers and for those who come from Hong Kong, Macao and Taiwan and are employed by the joint venture, shall be decided by the board of directors.

The employment, dismissal, resignation, remuneration, awards and penalties for Chinese senior administrative personnel shall be decided by the board of directors.

[Article 20] A joint venture must execute the rules and regulations of the Chinese Government concerning labour protection, provide special protection etc. for women workers, adopt measures concerning labour protection and provide the staff and workers with equipment for labour protection and health foods for special type(s) of work in order to ensure safety in production and the health of the employees.

When staff and workers meet with accidents while on duty and are injured, killed, poisoned and so on, the joint venture should promptly report the matter to the authorities in charge of the joint venture, the labour management authorities and the Ningbo Municipal Trade Union and subject itself to inspection by, and be accountable to the said authorities.

[Article 21] A joint venture should implement a system of a six-day working week and an eight-hour working day. The remuneration for special type(s) of work and overtime should be handled in accordance with the relevant State regulations.

Staff and workers of a joint venture shall enjoy holidays, leave to visit parents or spouses, leave to attend funerals, marriages, child birth, etc. as provided for by the State.

[Article 22] Staff and workers of a joint venture in accordance with the Trade Union Law of the People's Republic of China shall enjoy the right to establish trade unions at a grassroots level and carry out activities. The joint venture should give backing to and provide monthly outlays to the trade union, that amount being 2% of the total wages of the staff and workers.

[Article 23] A joint venture should grant awards or promotion in terms of wages or position to the staff and workers who have made substantial contribution and remarkable achievement in their work.

A joint venture shall criticise and educate staff and workers who have violated the rules and discipline of the enterprise, and may also take disciplinary action, such as disciplinary warning, recording of demerit, wage cuts, demotion and dismissal against the said people according to the seriousness of the case. The opinion of the trade union should be solicited prior to any action and those to be disciplined should be given a chance to state their case before the disciplinary action is taken. The decision of dismissal should be filed with the authorities in charge of the joint venture and the labour management authorities.

Those who are responsible for serious accident(s) or one that causes economic loss may be held accountable in accordance with the relevant State regulations.

[Article 24] Labour disputes that occur between a joint venture and its employees shall first be resolved through consultation between the two parties; if it cannot be settled this way, one or both parties to the dispute may submit the matter to arbitration by the labour management authorities; if one party does not accept the arbitration decision it may file a suit with the local People's Court.

[Article 25] In relation to joint ventures established before the promulgation of these Provisions, the wages and welfare services for their staff and workers may be handled in accordance with the terms agreed in their contracts.

[Article 26] Reference may also be made to these Provisions by Sino-foreign contractual joint ventures, as well as equity and contractual joint ventures involving overseas Chinese or compatriots of Hong Kong, Macao and Taiwan.

[Article 27] These Provisions shall come into force on the date of promulgation.