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PROCEDURES
FOR THE IMPLEMENTATION OF THE
REGULATIONS ON LABOUR MANAGEMENT IN JOINT
VENTURES USING CHINESE AND FOREIGN INVESTMENT
(Issued
and Promulgated on January 19, 1984
by the Ministry of Labor and Personnel)
SUBJECT: LABOR &
EMPLOYMENT
ISSUING-DEPT: MINISTRY
OF LABOUR & PERSONAL
ISSUE-DATE: 01/19/1984
IMPLEMENT-DATE: 01/19/1984
LENGTH: 2079 words
TEXT:
These Procedures are
specially formulated in order to facilitate the smooth implementation
of the "Provisions
of the People's Republic of China for Labour
Management in Joint Ventures Using Chinese and Foreign Investment"
(hereinafter referred to as "Management Provisions") and
to facilitate the development of Chinese-foreign
corporations (hereinafter
referred to as "joint ventures").
[Article 1] The labour
plans of a joint venture, after being decided by the board of directors,
shall be
filed with the department in charge of the joint venture
and the local labour personnel department and shall be brought
into
line with the state labour plan.
[Article 2] New workers to be employed by a joint venture according to its labour plan shall be openly recruited in line with the relevant policies of the State in the region defined by the labour personnel department and shall be selected for employment on the basis of their qualifications through testing.
If the newly-recruited
workers have to undergo training, the joint venture may fix a period
of time for
training according to its needs. All the trainees
must be tested by the joint venture at the end of the training
period
and selected for employment on the basis of their qualifications.
Those still unqualified
shall be retrained or sent back.
[Article 3] If the engineer, technicians, and managing personnel in the locality cannot satisfy the quantitative needs of the joint venture, the joint venture may recruit them from outside the region upon approval by the labour personnel department in the relevant province, municipality or autonomous region and with the consent of the labour personnel departments in the regions concerned.
The joint venture may
fix a probation period for the newly-recruited personnel and the personnel
recommended
by the department in charge of the joint venture or the
local labour personnel department in line with the Article 3
of the
Management Provisions. They must be formally employed if they
are proved to be qualified during
the probation period. Those
unqualified shall be sent back and should be accepted by their original
units if they are permanent staff and workers.
[Article 4] Apart from
the agents of the foreign participant in a joint venture, all the
staff and workers
of a joint venture shall be recruited from among
Chinese people, provided the Chinese side can provide qualified Chinese
people.
[Article 5] The employment of personnel for a joint venture shall be conducted in the form of signing a labour contract which, apart from the relevant matters listed in the first paragraph of Article 2 of the Management Provisions shall stipulate the effective period of contract, conditions for its modification and termination and the rights and obligations of the joint venture and its staff and workers.
The labour contract shall be concluded by the joint venture and the joint venture's trade union organisation through consultations (or by the joint venture and representatives of its staff and workers if the trade union is not yet organised), and, in accordance with Article 2 of the Management Provisions the contract shall be submitted to the labour personnel department in the province, municipality or autonomous region for approval. The labour personnel department in the province, municipality or autonomous region may authorise the labour personnel department in the county where the joint venture is located to ratify the contract.
The joint venture may sign a collective labour contract with the joint venture's trade union organisation or sign contracts with individual staff and workers. Once a contract is signed it should be observed by both sides. The modification of a contract at the request of one side must be agreed upon by both sides and submitted for approval to the original approving organ.
In addition to the labour
contracts, the joint venture may sign labour service contracts with
the units
which provide personnel from local labour service companies
on recruitment, employment and dismissal of workers and
staff.
[Article 6] The joint
venture shall strengthen the work of regularly training the staff
and workers to improve
their technical skills. Expenses incurred
in training may be handled in accordance with the "Supplementary
Notice on the Interim Provisions for Control and Spending of Educational
Funds for Staff and Workers"
issued by the Ministry of Finance
in 1982.
[Article 7] When a joint venture wants to dismiss redundant staff and workers as the result of a change in production and technical conditions or other reasons during the contractual period, it must notify the joint venture's trade union organisation and the dismissed staff and workers one month before the dismissal. The dismissal decision shall be submitted for the record to the department in charge of the joint venture and the local labour personnel department.
Workers and staff should not be dismissed during the period of their treatment or recuperation for industrial injury and occupational diseases or during the period of their treatment at hospitals for illness and injury irrelevant to their work. Women workers and staff also should not be dismissed during their pregnancy over six months or during maternity leave.
The joint venture should
give compensation to those workers and staff who are dismissed during
the period
of the labour contract or after the expiration of the contract
according to their length of work in the joint venture.
The
dismissed worker may be paid one month of the average wage of the
joint venture for each full year's
work. Those who have worked
more than 10 years shall be paid one-and-one-half months of the average
wage of the joint venture for each full year's work, starting from
the eleventh year.
[Article 8] Workers and staff of a joint venture may resign for special reasons during the period of the labour contract and shall submit their application to the joint venture through their trade union organisation one month before their resignation. The joint venture shall permit the resignations of workers and staff who have just reasons, but shall not give them compensation.
If the workers and staff,
who received training provided by the joint venture want to resign
during the
contractual period, they shall compensate the joint venture
for an agreed amount of the expenses incurred in their training.
[Article 9] The joint
venture shall give moral encouragement or material reward to those
workers and staff
who observe the joint venture's rules and regulations
in an exemplary way and make fine achievements in fulfilling their
tasks of production or other work, carrying on technical innovation
and improving management. Those
who have made outstanding achievements
shall be promoted or their wage levels shall be increased. The
decision for such awards shall be made by the general manager and
deputy general managers.
[Article 10] The joint venture may, in accordance with the seriousness of the case, impose criticism or punishment on staff and workers who violate the rules, regulations or labour discipline with adverse effects to the joint venture, may impose a fine or economic sanction. Those who commit serious mistakes and refuse to mend their ways despite repeated admonition may be expelled.
The sanctions shall be
decided upon by the general manager and deputy general managers after
seeking opinion
from the joint venture's trade union organisation
and listening to the argument from the persons concerned. The
sanction of discharge must be reported to the department in charge
of the joint venture and the labour
personnel department for the record.
[Article 11] When the
joint venture administers reward or punishment to those workers and
staff appointed
by the administrative organs of the government, the
power and procedures for the ratification shall be handled in accordance
with the "Interim Provisions of the State Council on Awarding
and Punishment of Personnel in State
Administrative Organs" issued
in 195
[Article 12] The joint venture shall pay the Chinese workers and staff in accordance with the wage levels stipulated in Article 8 of the Management Provisions. The increase in wages shall be decided upon by the board of directors in the light of the regulations of contract, articles of association and the condition of the joint venture's production and management. It is not necessary to keep to the scales set by state-run enterprises.
The real wages of the workers and staff of state-run enterprises in the locality in the same line of business as stated in Article 8 of the Management Provisions means the average wages of the workers and staff in state-run enterprises in the locality in the same line of business and with similar production scales and technical conditions. The concrete amounts of the wages shall be examined and approved by the local labour personnel department together with the financial department and the department in charge of the joint venture.
Workers and staff who
leave a joint venture and join another unit shall be paid in accordance
with the system
of wage standards, bonuses and subsidies of the unit.
[Article 13] The joint venture must pay the Chinese workers and staff, in accordance with Article 11 of the Management Provisions, labour insurance, welfare benefits and various government subsidies on house rent, prices of basic daily necessities, culture, education, health protection, etc. for staff and workers. The amount of these funds shall be examined and approved by the labour personnel department in the province, municipality or autonomous region together with the financial department and the department concerned, and readjusted in line with changes in the standards of labour insurance, welfare benefits and various government subsidies in state-run enterprises.
The labour insurance
welfare benefits of a joint venture paid to the Chinese participants
in a joint venture
shall be used under the supervision of the joint
venture's trade union organisation. The subsidies shall be handled
according to the relevant regulations of the government.
[Article 14] The labour
insurance and welfare benefits of the staff and workers in a joint
venture shall
be handled in accordance with the relevant regulations
of the Chinese government for state-run enterprises. The
joint
venture may express its opinion on the clauses or items in the regulations
if it considers them unsuitable
and may make proposals which shall
be implemented after approval by the labour personnel department in
the province, municipality or autonomous region for ratification with
the consent of the financial department and the
trade union at the
same level.
[Article 15] The joint
venture should pay attention to strengthening labour protection for
its staff and
workers and appoint proper and sufficient personnel
in charge of the labour protection work. Effective measures
must be taken to improve the labour conditions of the staff and workers
and ensure safety in production
and civilised production. The
expenses in this field may be settled in accordance with the "Notice
on Strengthening Protection from Silicon Dust and Toxic Materials"
issued by the State Planning Commission
in 1973.
[Article 16] The joint
venture shall implement the systems of work schedules, holidays and
paid leave of
absence which are carried on in China's state-run enterprises.It
must distribute labour protection appliances to the
staff and workers
with reference to the standards in state-run enterprises.
[Article 17] When staff
and workers die or suffer injuries from industrial accidents or sustain
severe occupational
poisoning and other injurious occupational accidents,
the joint venture shall report the matter promptly to the department
in charge of the joint venture and local labour personnel department
and trade union organisation, and
accept their investigation and treatment
[Article 18] The joint
venture in special economic zones should implement the labour management
provisions
stipulated by the zone.
[Article 19] These Procedures
shall be implemented under the supervision of the labour personnel
departments
at various levels.
[Article 20] These Procedures
shall go into effect on the day they are promulgated.
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