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1、LAW OF THE PEOPLES REPUBLIC OF CHINA ON EMPLOYMENT CONTRACTSAopteatthe28thSessionoftheStaningCommitteeofthe10thNational Peoples Congress on June 29,2007Effective from January 1,By Baker & MCKenzieCHAPTER 1 GENERAL PROVISIONSArticle 1ThisLaw hasbeenformulate inorerto improvetheemploymentcontract syst
2、em,tospecifytherightsanobligationsofthepartiestoemployment contracts,toprotectthelawfulrightsaninterestsofEmployeesantobuil anevelopharmoniousanstableemploymentrelationships.Article 2This Law governs the establishment of employment relationships between, an the conclusion, performance, amenment, ter
3、mination an ening of employment contracts by, organizations such as enterprises, iniviual economic organizations an private non-enterprise units in the Peoples Republic of China (“Employers) on the one han an Employees in the Peoples Republic of China on the other han.Theconclusion,performance,amenm
4、ent,terminationaneningemploymentcontractsbystateauthorities,institutionsorsocialorganizations ontheonehananEmployeeswithwhomtheyestablishemployment relationshipsontheotherhan,shallbehanlepursuanttothisLaw.Article 3The conclusion of employment contracts shall comply with the principles lawfulness,fai
5、rness,equality,freewill,negotiateconsensusangoofaith.Alawfullyconclueemploymentcontractisbining,anboththeEmployer antheEmployeeshallperformtheirrespectiveobligationsstipulatetherein. Article 4Employersshallestablishanimproveinternalrulesanregulations,soasto ensurethatEmployeesenjoytheirlaborrightsan
6、performtheirobligations.WhenanEmployerformulates,revisesoreciesonrulesanregulations,or materialmatters,thathaveairectbearingontheimmeiateinterestsofits Employees,suchasthoseconcerningcompensation,workhours,rest,leave, worksafetyanhygiene,insurance,benefits,employeetraining,work isciplineorworkquotam
7、anagement,thesameshallbeiscussebythe employeerepresentativecongressoralltheemployees.Theemployee representativecongressoralltheemployees,asthecasemaybe,shallput forwar a proposal an comments, whereupon the matter shall beetermine throughconsultationswiththeTraeunionoremployeeconucte on a basis ofequ
8、ality.If, uring the implementation of an Employers rule or regulation or ecisionon acrucialmatter,theTraeunionoranemployeeisoftheopinionthatthe sameisinappropriate,itorheisentitletocommunicatesuchopiniontothe Employer, an the rule, regulation or ecision shall be improve by making amenments aftercons
9、ultations.Rulesanregulations,anecisionsonmaterialmatters,thathaveairect bearingontheimmeiateinterestsofEmployeesshallbemaepublicorcommunicate to the Employees by theEmployer.Article 5The labor aministration authorities of Peoples Governments at the county levelanabove,togetherwiththeTraeunionanenter
10、priserepresentatives, shallestablishacomprehensivetri-partitemechanismforthecoorinationof employmentrelationships,inorertojointlystuyanresolvemajorissues concerning employmentrelationships.Article 6ATraeunionshallassistanguieEmployeesintheconclusionemployment contracts with their Employer an the per
11、formance thereof inaccorance with the law, an establish a collective bargaining mechanism with theEmployerinorertosafeguarthelawfulrightsaninterestsofEmployees. CHAPTER 2 CONCLUSION OF EMPLOYMENT CONTRACTSArticle 7An Employers employment relationship with a Employee is establishe on the ate it start
12、s using the Employee. An Employer shall keep a register of employees, for reference purposes.Article 8When anEmployerhiresaEmployee,itshalltruthfullyinformhimastothe contentofthework,theworkingconitions,theplaceofwork,occupational hazars,prouctionsafetyconitions,laborcompensationanothermatters which
13、theEmployeerequeststobeinformeabout.TheEmployerhasthe righttolearnfromtheEmployeebasicinformationwhichirectlyrelatestothe employmentcontract,antheEmployeeshalltruthfullyproviethesame.Article 9When hiring a Employee, an Employer may not retain the Employeesresient Icarorotherpapers,normayitrequirehim
14、toproviesecurityorcollect property from him uner some otherguise.Article 10Article 10Toestablishanemploymentrelationship,awrittenemploymentcontractbe conclue.Intheeventthatnowrittenemploymentcontractwasconclueatthetimeof establishmentofanemploymentrelationship,awrittenemploymentcontract shall be con
15、clue within one month after the ate on which theEmployer starts using theEmployee.Article11WhereanEmployeranaEmployeeconclueanemploymentcontracttheEmployerstartsusingtheEmployee,theemploymentrelationshipshallbe establisheontheateonwhichtheEmployerstartsusingtheArticle11IntheeventthatanEmployerfailst
16、oconclueawrittenemploymentcontractwithaEmployeeatthetimeitsstartstousehim,anitisnotclearwhatlabor compensationwasagreeuponwiththeEmployee,thelaborcompensationthenewEmployeeshallbeeciepursuanttotheratespecifieinthe collectivecontract;wherethereisnocollectivecontractorthecollective contractissilentont
17、hematter,equalpayshallbegivenforequalwork.Article 12Article 12Article 13Employmentcontractsareivieintofixe-termemploymentopen-eneemploymentcontractsanemploymentcontractstoexpireupon completion of a certainjob.Article 13A“fixe-termemploymentcontractisanemploymentcontracteningateisagreeuponbytheEmploy
18、erantheEmployee.AnEmployeranaEmployeemayconclueafixe-termemploymentcontract upon reaching a negotiateconsensus.Article 14An “open-ene employment contract is an employment contract for which the Employer an the Employee have agree not to stipulate a efiniteening ate.An Employer an a Employee may conc
19、lue an open-ene employment contractuponreachinganegotiateconsensus.IfaEmployeeproposesor agrees to renew his employment contract or to conclue an employment contractinanyofthefollowingcircumstances,anopen-eneemployment contractshallbeconclue,unlesstheEmployeerequeststheconclusionoffixe-term employme
20、ntcontract:TheEmployeehasbeenworkingfortheEmployerforaconsecutiveperio of not less than 10years;whenhisEmployerintroucestheemploymentcontractsystemorthestate owneenterprisethatemployshimre-concluesitsemploymentcontractsas aresultofrestructuring,theEmployeehasbeenworkingfortheEmployerforconsecutivepe
21、rioofnotlessthan10yearsanislessthan10yearsawayfrom his legal retirement age; orpriortotherenewal,afixe-termemploymentcontractwasconclueon twoconsecutiveoccasionsantheEmployeeisnotcharacterizebyanyof thecircumstancessetforthinArticle39anitems(1)an(2)ofArticle40 hereof.If an Employer fails to conclue
22、a written employment contract with a EmployeewithinoneyearfromtheateonwhichitstartsusingtheEmployee, theEmployerantheEmployeeshallbeeemetohaveconcluean open-ene employmentcontract.Article 15An “employment contract with a term to expire upon completion of a certain job is an employment contract in wh
23、ich the Employer an the Employee haveagreethatthecompletionofacertainjobisthetermofthecontract.AnEmployeranaEmployeemay,uponreachinganegotiateconsensus, conclue an employment contract with a term to expire upon completion of a certainjob.Article 16AnemploymentcontractshallbecomeeffectivewhentheEmplo
24、yeranEmployeehavereacheanegotiateconsensusthereonaneachofthem hassigneorsealethetextofsuchcontract.TheEmployerantheEmployeeshalleachholonecopyoftheemployment contract.Article 17An employment contract shall specify the following matters:Thename,omicileanlegalrepresentativeormainpersoninchargetheEmplo
25、yer;Thename,omicileannumberoftheresientIcarorotherientity ocument of theEmployee;The term of the employmentcontract;Thejobescriptionantheplaceofwork;Working hours, rest anleave;Laborcompensation;Socialinsurance;Labor protection, working conitions an protection against occupational hazars; anOthermat
26、terswhichlawsanstatutesrequiretobeinclueemploymentcontracts.In aition to the requisite terms mentione above, an Employer an a Employeemayagreetostipulateothermattersintheemploymentcontract, such as probation perio, training, confientiality, supplementaryinsurance an benefits,etc.Article 18Ifaisputea
27、risesuetothefactthattherateorstanarsforlabor compensationorworkingconitions,etc.arenotexplicitlyspecifieinthe employmentcontract,theEmployerantheEmployeemayrenegotiate.Ifthe negotiations are unsuccessful, the provisions of the collective contract shall apply.Ifthereisnocollectivecontractorthecollect
28、ivecontractissilentonthe issueoflaborcompensation,equalpayshallbegivenforequalwork;iftherenocollectivecontractorthecollectivecontractissilentontheissueofworking conitions,therelevantregulationsofthestateshallapply.Article 19Ifanemploymentcontracthasatermofnotlessthanthreemonthsbutless thanoneyear,th
29、eprobationperiomaynotexceeonemonth;ifan employmentcontracthasatermofmorethanoneyearanlessthanthree years,theprobationperiomaynotexceetwomonths;anifanemployment contracthasatermofnotlessthanthreeyearsorisopen-ene,the probationperiomaynotexceesixmonths.AnEmployermaystipulateonlyoneprobationperiowithan
30、ygivenEmployee. Noprobationperiomaybespecifieinanemploymentcontractwithatermto expireuponcompletionofacertainjoboranemploymentcontractwithatermof less than three months.Theprobationperioshallbeinclueinthetermoftheemploymentcontract. Ifanemploymentcontractproviesforaprobationperioonly,thenthereisprob
31、ationperioanthetermconcerneshallbethetermoftheemployment contract.Article 20ThewagesofaEmployeeonprobationmaynotbelessthanthelowestwage levelforthesamejobwiththeEmployerorlessthan80percentofthewage agree uponintheemploymentcontract, anmaynotbe less than minimumwagerateintheplacewheretheEmployerisloc
32、ate.Article 21An Employer may not terminate an employment contract uring the probation periounlesstheEmployeeischaracterizebyanyofthecircumstancesset forthinArticle39anitems(1)an (2)ofArticle40hereof.IfanEmployer terminates an employment contract uring the probation perio, it shallexplain the reason
33、s to theEmployee.Article 22If an Employer provies special funing for a Employees training an gives him professional technical training, it may conclue an agreement specifyinga term of service with suchEmployee.IftheEmployeebreachestheagreementonthetermofservice,heshallpay liquiateamagestotheEmployer
34、asagree.Themeasureoftheliquiate amages may not excee the training expenses pai by the Employer.The liquiateamagesthattheEmployerrequirestheEmployeetopaymaynot excee the portion of the training expenses allocable to the unperforme portion of the term ofservice.Thereachingofagreementonatermofservicebe
35、tweentheEmployeranEmployee oes not affect the raising of theEmployeeslabor compensation uringthetermofserviceaccoringtothenormalwageajustment mechanism.Article 23AnEmployeranaEmployeemayinclueintheiremploymentprovisionsonconfientialitymattersrelatingtomaintainingtheconfientiality ofthetraesecretsoft
36、heEmployerantointellectualproperty.IfaEmployeehasaconfientialityobligation,theEmployermayagreewithEmployeeoncompetitionrestrictionprovisionsintheemploymentcontractor confientialityagreement,anstipulatethattheEmployershallpayfinancial compensationtotheEmployeeonamonthlybasisuringthetermofthe competit
37、ionrestrictionaftertheterminationoreningoftheemployment contract.IftheEmployeebreachesthecompetitionrestrictionprovisions,he shallpayliquiateamagestotheEmployerasstipulate.Article 24Thepersonnelsubjecttocompetitionrestrictionsshallbelimitetothe Employers senior management, senior technicians an othe
38、r personnel with confientiality obligation. The scope, territory anterm of the competition restrictionsshallbeagreeuponbytheEmployerantheEmployee,ansuch agreement shall not violate laws anregulations.The term, counte from the termination or ening of the employment contract, forwhichapersonasmentione
39、inthepreceingparagraphissubjectto competitionrestrictionsintermsofhisworkingforacompetingEmployerthat proucesthesame type ofproucts orisengageinthesame typebusiness as his current Employer, or in terms of his establishing his businesstoproucethesametypeofprouctsorengageinthesametypeof business, shal
40、l not excee twoyears.Article 25WiththeexceptionofthecircumstancesspecifieinArticles22an23hereof, anEmployermaynotstipulatewithaEmployeeprovisionsonthebearingof liquiate amages by theEmployee.Article 26An employment contract shall be invali or partially invali if:Apartyusessuchmeansaseceptionorcoerci
41、on,ortakesavantageof theotherpartysifficulties,tocausetheotherpartytoconclueemploymentcontract,ortomakeanamenmentthereto,thatiscontraryto that partys trueintent;TheEmployerisclaimsitslegalliabilityoreniestheEmployeehisrights; orManatoryprovisionsoflawsoraministrativestatutesareviolate.If the invalii
42、ty or partial invaliity of the employment contract is ispute,it shall be confirme by a labor ispute arbitration institution or a PeoplesCourt. Article 27If certain provisions of an employment contract are invali an such invaliityoes not affect the valiity of the remaining provisions, the remaining p
43、rovisions shall remain vali.Article 28IfanemploymentcontractisconfirmeasinvaliantheEmployeealreay performe labor, the Employer shall pay the Employee labor compensation.Theamountoflaborcompensationshallbeeterminewith referencetothelaborcompensationofEmployeesinthesameorasimilar position with theEmpl
44、oyer.CHAPTER 3 PERFORMANCE AN AMENMENT OF EMPLOYMENT CONTRACTSArticle 29TheEmployerantheEmployeeshalleachfullyperformits/hisobligationsaccorance with the employmentcontract.Article 30EmployersshallpaytheirEmployeeslaborcompensationontimeaninfullaccorancewiththeemploymentcontractsanstateregulations.I
45、fanEmployerfallsintoarrearswiththepaymentoflaborcompensationfailstomakepaymentinfull,theEmployeemay,inaccorancewiththelaw, apply to the localPeoplesCourt for an orer to pay; an the Peoples Court shall issue such orer inaccorancewiththeArticle31Employersshallstrictlyimplementtheworkquotastanarsanmayc
46、ompelorinaisguisemannercompelEmployeestoworkovertime.Ifan EmployerarrangesforaEmployeetoworkovertime,itshallpayhimovertime payinaccorancewiththerelevantstateregulations.Article 32Employeesshallnotbehelinbreachoftheiremploymentcontractsifthey refusetoperformangerousoperationsthatareinstructeinviolati
47、onregulationsorperemptorilyorerebymanagementstaffoftheEmployer.Employees have the right to criticize, report to the authorities or loge accusationsagainsttheirEmployersinrespectofworkingconitionsenanger their lives orhealth.Article 33Changessuchachangeinthename,legalrepresentativeormainpersonin char
48、geof,oran(the)investor(s)in,anEmployershallnotaffectperformance of its employmentcontracts.Article 34If an Employer is merge or ivie, etc., its existing employment contracts shall remain vali an continue to be performe by the Employer(s) which succeee to its rights an obligationsArticle 35AnEmployer
49、anaEmployeemayamentheprovisionsoftheiremployment contractiftheysoagreeafterconsultations.Amenmentstoanemployment contract shall be mae inwriting.TheEmployerantheEmployeeshalleachholonecopyoftheamene employmentcontract.CHAPTER 4 TERMINATION AN ENING OF EMPLOYMENT CONTRACTSArticle 36An Employer an a E
50、mployee may terminate their employment contract if they so agree after consultations.Article 37A Employeemay terminatehis employmentcontract upon 30 ays prior writtennoticetohisEmployer.uringhisprobationperio,aEmployeemay terminate his employment contract by giving his Employer three ays prior notic
51、e.Article 38A Employee may terminate his employment contract if his Employer:Failstoproviethelaborprotectionorworkingconitionsspecifieinemploymentcontract;Failstopaylaborcompensationinfullanontime;FailstopaythesocialinsurancepremiumsfortheEmployeeinaccorance with thelaw;Hasrulesanregulationsthatviol
52、atelawsorregulations,therebyharmingthe Employees rights an interests;causestheemploymentcontract to beinvaliueto aspecifieinthefirstparagraphofArticle26hereof;Givesrisetoanothercircumstanceinwhichlawsoraministrativestatutes permitaEmployeetoterminatehisemploymentcontract.IfanEmployerusesviolence,thr
53、eatsorunlawfulrestrictionofpersonal freeom to compel a Employee to work, or if a Employee is instructe in violation of rules an regulations or peremptorily orere by his Employer to performangerousoperationswhichthreatenhispersonalsafety,the Employee may terminate his employment contract forthwith wi
54、thout giving notice to theEmployer.Article 39An Employer may terminate an employment contract if the Employee:Isproveuringtheprobationperionottosatisfytheconitionsemployment;Materially breaches the Employers rules anregulations;Commitsseriouserelictionofutyorpracticesgraft,causingsubstantial amage t
55、o theEmployer;hasaitionallyestablisheanemploymentrelationshipwithEmployerwhichmateriallyaffectsthecompletionofhistaskswiththe first-mentioneEmployer,orherefusestorectifythematterafterthesameis brought to his attention by theEmployer;causestheemploymentcontracttobeinvaliuetothecircumstance specifiein
56、item(1)ofthefirstparagraphofArticle26hereof;orHashiscriminalliabilitypursueinaccorancewiththeArticle40AnEmployermayterminateanemploymentcontractbygivingtheEmployeehimself 30 ays prior written notice, or one months wage in lieu of notice, if:afterthesetperioofmeicalcareforanillnessornon-work-relatein
57、jury, the Employee can engage neither in his original work nor in other work arrange for him by hisEmployer;The Employee is incompetent an remains incompetent after trainingajustment of his position;orAmajorchangeintheobjectivecircumstancesrelieuponatthetimeof conclusion of the employment contract r
58、eners it unperformable an,consultations,theEmployeranEmployeeareunabletoreachagreementon amening the employmentcontract.Article 41Ifanyofthefollowingcircumstancesmakesitnecessarytoreucethe workforceby20personsormoreorbyanumberofpersonsthatislessthan 20 but accounts for 10 percent or more of the tota
59、l number of the enterprises employees,theEmployermayreucetheworkforceafterithasexplainethe circumstancestoitsTraeunionortoallofitsemployees30aysinavance, hasconsieretheopinionsoftheTraeunionortheemployeesanhas subsequently reporte the workforce reuction plan to the laboraministrationepartment:Restru
60、cturingpursuanttotheEnterpriseBankruptcyLaw;Seriousifficultiesinprouctionan/orbusinessoperations;The enterprise switches prouction, introuces a major technological innovation or revises its business metho, an, after amenment employmentcontracts,stillneestoreuceitsworkforce;orAnothermajorchangeintheo
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