1、LAW OF THE PEOPLES REPUBLIC OF CHINA ON EMPLOYMENT CONTRACTSAdoptedd at tthe 288th Seessionn of tthe Sttandinng Commmitteee of the 110th NNationnal Peeoples Conngresss on JJune 229, 20007Effectiive frrom Jaanuaryy 1, 22008By Bakeer & MMCKenzzieCHAPTERR 1 GEENERALL PROVVISIONNS Articlee 1This Laaw ha

2、ss beenn formmulateed in orderr to iimprovve thee emplloymennt conntractt systtem, tto speecify the rrightss and obliggationns of the ppartiees to emplooymentt conttractss, to proteect thhe lawwful rrightss and interrests of Emmployeees annd to buildd and devellop haarmoniious aand sttable emplooyme

3、ntt relaationsships. Articlee 2This Laaw govverns the eestabllishmeent off emplloymennt rellationnshipss betwween, and tthe coonclussion, perfoormancce, ammendmeent, tterminnationn and endinng of emplooymentt conttractss by, organnizatiions ssuch aas entterpriises, indivviduall econnomic organnizati

4、ions aand prrivatee non-enterrprisee unitts in the PPeoplees Reepubliic of Chinaa (“Emmployeers”) on thhe onee handd and Emplooyees in thhe Peoopless Repuublic of Chhina oon thee otheer hannd. The connclusiion, pperforrmancee, ameendmennt, teerminaation and eendingg of eemployyment contrracts by stt

5、ate aauthorritiess, insstituttions or soocial organnizatiions oon thee one hand and EEmployyees wwith wwhom tthey eestabllish eemployyment relattionshhips oon thee otheer hannd, shhall bbe hanndled pursuuant tto thiis Laww.Articlee 3The connclusiion off emplloymennt conntractts shaall coomply with t

6、he pprinciiples of laawfulnness, fairnness, equallity, free will, negootiateed connsensuus andd goodd faitth. A lawfuully cconcluuded eemployyment contrract iis binnding, and both the EEmployyer annd thee Emplloyee shalll perfform ttheir respeectivee obliigatioons sttipulaated tthereiin. Articlee 4E

7、mployeers shhall eestabllish aand immprovee inteernal ruless and regullationns, soo as tto enssure tthat EEmployyees eenjoy theirr laboor rigghts aand peerformm theiir labbor obbligattions. When ann Emplloyer formuulatess, revvises or deecidess on rrules and rregulaationss, or materrial mmatterrs, t

8、hhat haave a direcct beaaring on thhe immmediatte intterestts of its EEmployyees, such as thhose cconcerrning compeensatiion, wwork hhours, restt, leaave, wwork ssafetyy and hygieene, iinsuraance, beneffits, emplooyee ttrainiing, wwork ddiscippline or woork quuota mmanageement, the same shalll be dd

9、iscusssed bby thee emplloyee repreesentaative congrress oor alll the emplooyees. The emplooyee rrepressentattive ccongreess orr all the eemployyees, as thhe casse mayy be, shalll put forwaard a propoosal aand coommentts, whhereuppon thhe mattter sshall be deetermiined tthrouggh connsultaationss with

10、h the Tradee unioon or emplooyee rrepressentattives conduucted on a basiss of eequaliity. If, durring tthe immplemeentatiion off an EEmployyers rule or reegulattion oor deccisionn on aa cruccial mmatterr, thee Tradde uniion orr an eemployyee iss of tthe oppinionn thatt the same is innapproopriatte,

11、itt or hhe is entittled tto commmuniccate ssuch oopinioon to the EEmployyer, aand thhe rulle, reegulattion oor deccisionn shalll be improoved bby makking aamendmments afterr conssultattions. Rules aand reegulattions, and decissions on maateriaal mattters, thatt havee a diirect beariing onn the immed

12、diate interrests of Emmployeees shhall bbe madde pubblic oor be commuunicatted too the Emplooyees by thhe Empployerr. Articlee 5The labbor addminisstratiion auuthoriities of Peeoples Govvernmeents aat thee counnty leevel aand abbove, togetther wwith tthe Trrade uunion and eenterpprise repreesentaati

13、vess, shaall esstabliish a comprrehenssive ttri-paartitee mechhanismm for the ccoordiinatioon of emplooymentt relaationsships, in oorder to joointlyy studdy andd resoolve mmajor issuees conncerniing emmploymment rrelatiionshiips. Articlee 6A Tradee unioon shaall asssist and gguide Emplooyees in thhe

14、 connclusiion off emplloymennt conntractts witth theeir Emmployeer andd the perfoormancce theereof in acccordaance wwith tthe laaw, annd esttablissh a ccollecctive bargaainingg mechhanismm withh the Emplooyer iin ordder too safeeguardd the lawfuul rigghts aand innteressts off Emplloyeess. CHAPTERR 2

15、 COONCLUSSION OOF EMPPLOYMEENT COONTRACCTSArticlee 7An Emplloyers empploymeent reelatioonshipp withh a Emmployeee is estabblisheed on the ddate iit staarts uusing the EEmployyee. AAn Empployerr shalll keeep a rregistter off emplloyeess, forr refeerencee purpposes. Articlee 8When ann Emplloyer hiress

16、 a Emmployeee, itt shalll truuthfullly innform him aas to the ccontennt of the wwork, the wworkinng connditioons, tthe pllace oof worrk, occcupattionall hazaards, produuctionn safeety coonditiions, laborr comppensattion aand otther mmatterrs whiich thhe Empployeee requuests to bee infoormed aboutt.

17、Thee Emplloyer has tthe riight tto leaarn frrom thhe Empployeee basiic infformattion wwhich direcctly rrelatees to the eemployyment contrract, and tthe Emmployeee shaall trruthfuully pprovidde thee samee. Articlee 9When hiiring a Empployeee, an Emplooyer mmay noot rettain tthe Emmployeees rresideent

18、 IDD cardd or oother paperrs, noor mayy it rrequirre himm to pprovidde seccurityy or ccollecct proopertyy fromm him underr somee otheer guiise. Articlee 10To estaablishh an eemployyment relattionshhip, aa writtten eemployyment contrract sshall be cooncludded. In the eventt thatt no wwritteen empploy

19、meent coontracct wass conccludedd at tthe tiime off estaablishhment of ann emplloymennt rellationnship, a wrrittenn emplloymennt conntractt shalll be conclluded withiin onee montth aftter thhe datte on whichh the Emplooyer sstartss usinng thee Emplloyee.Where aan Empployerr and a Empployeee concclud

20、e an emmploymment ccontraact beefore the EEmployyer sttarts usingg the Emplooyee, the eemployyment relattionshhip shhall bbe esttablisshed oon thee datee on wwhich the EEmployyer sttarts usingg the Emplooyee. Articlee 11In the eventt thatt an EEmployyer faails tto conncludee a wrrittenn emplloymennt

21、 conntractt withh a Emmployeee at the ttime iits sttarts to usse himm, andd it iis nott cleaar whaat labbor coompenssationn was agreeed upoon witth thee Emplloyee, the laborr comppensattion oof thee new Emplooyee sshall be deecidedd purssuant to thhe ratte speecifieed in the ccollecctive contrract;

22、wheree therre is no coollecttive ccontraact orr the colleectivee conttract is siilent on thhe mattter, equall pay shalll be ggiven for eequal work. Articlee 12Employmment ccontraacts aare diividedd intoo fixeed-terrm empploymeent coontraccts, oopen-eended emplooymentt conttractss and emplooymentt co

23、nttractss to eexpiree uponn comppletioon of a cerrtain job. Articlee 13A “fixeed-terrm empploymeent coontracct” iss an eemployyment contrract wwhose endinng datte is agreeed upoon by the EEmployyer annd thee Emplloyee. An Emplloyer and aa Emplloyee may cconcluude a fixedd-termm emplloymennt conntrac

24、tt uponn reacching a neggotiatted coonsenssus. Articlee 14An “opeen-endded emmploymment ccontraact” iis an emplooymentt conttract for wwhich the EEmployyer annd thee Emplloyee have agreeed nott to sstipullate aa defiinite endinng datte. An Emplloyer and aa Emplloyee may cconcluude ann openn-endeed e

25、mpploymeent coontracct upoon reaachingg a neegotiaated cconsennsus. If a Emplooyee pproposses orr agreees too reneew hiss emplloymennt conntractt or tto conncludee an eemployyment contrract iin anyy of tthe foollowiing ciircumsstancees, ann openn-endeed empploymeent coontracct shaall bee conccludedd

26、, unlless tthe Emmployeee reqquestss the concllusionn of aa fixeed-terrm empploymeent coontracct: (1) Thee Emplloyee has bbeen wworkinng forr the Emplooyer ffor a conseecutivve perriod oof nott lesss thann 10 yyears; (2) wheen hiss Emplloyer introoducess the emplooymentt conttract systeem or the sst

27、ate ownedd enteerprisse thaat empploys him rre-conncludees itss emplloymennt conntractts as a ressult oof resstructturingg, thee Emplloyee has bbeen wworkinng forr the Emplooyer ffor a conseecutivve perriod oof nott lesss thann 10 yyears and iis lesss thaan 10 yearss awayy fromm his legall retiireme

28、nnt agee; or (3) priior too the renewwal, aa fixeed-terrm empploymeent coontracct wass conccludedd on ttwo coonsecuutive occassions and tthe Emmployeee is not ccharaccterizzed byy any of thhe cirrcumsttancess set forthh in AArticlle 39 and iitems (1) aand (22) of Articcle 400 hereeof. If an EEmployy

29、er faails tto conncludee a wrrittenn emplloymennt conntractt withh a Emmployeee witthin oone yeear frrom thhe datte on whichh it sstartss usinng thee Emplloyee, the Emplooyer aand thhe Empployeee shalll be deemeed to have conclluded an oppen-ennded eemployyment contrract. Articlee 15An “empploymeent

30、 coontracct witth a tterm tto exppire uupon ccompleetion of a certaain joob” iss an eemployyment contrract iin whiich thhe Empployerr and the EEmployyee haave aggreed that the ccompleetion of a certaain joob is the tterm oof thee conttract. An Emplloyer and aa Emplloyee may, upon reachhing aa negoot

31、iateed connsensuus, cooncludde an emplooymentt conttract with a terrm to expirre upoon commpletiion off a ceertainn job.Articlee 16An emplloymennt conntractt shalll beccome eeffecttive wwhen tthe Emmployeer andd the Emplooyee hhave rreacheed a nnegotiiated conseensus thereeon annd eacch of them has

32、ssignedd or ssealedd the text of suuch coontracct. The Empployerr and the EEmployyee shhall eeach hhold oone coopy off the emplooymentt conttract. Articlee 17An emplloymennt conntractt shalll speecify the ffollowwing mmatterrs: (1) Thee namee, dommicilee and legall reprresenttativee or mmain pperson

33、n in cchargee of tthe Emmployeer; (2) Thee namee, dommicilee and numbeer of the rresideent IDD cardd or oother validd idenntity documment oof thee Emplloyee; (3) Thee termm of tthe emmploymment ccontraact; (4) Thee job des ccriptiion annd thee placce of work; (5) Worrking hourss, resst andd leavve;

34、(6) Labbor coompenssationn; (7) Soccial iinsuraance; (8) Labbor prrotecttion, workiing coonditiions aand prrotecttion aagainsst occcupatiional hazarrds; aand (9) Othher maatterss whicch lawws andd stattutes requiire too be iincludded inn emplloymennt conntractts. In addiition to thhe reqquisitte ter

35、rms meentionned abbove, an Emmployeer andd a Emmployeee mayy agreee to stipuulate otherr mattters iin thee emplloymennt conntractt, succh as probaation periood, trraininng, coonfideentiallity, suppllementtary iinsuraance aand beenefitts, ettc. Articlee 18If a diisputee arisses duue to the ffact ttha

36、t tthe raate orr stanndardss for laborr comppensattion oor worrking condiitionss, etcc. aree not expliicitlyy speccifiedd in tthe emmploymment ccontraact, tthe Emmployeer andd the Emplooyee mmay reenegottiate. If tthe neegotiaationss are unsucccessfful, tthe prrovisiions oof thee colllectivve conntr

37、actt shalll appply. IIf theere iss no ccollecctive contrract oor thee colllectivve conntractt is ssilentt on tthe isssue oof labbor coompenssationn, equual paay shaall bee giveen forr equaal worrk; iff therre is no coollecttive ccontraact orr the colleectivee conttract is siilent on thhe isssue off

38、workking ccondittions, the relevvant rregulaationss of tthe sttate sshall applyy. Articlee 19If an eemployyment contrract hhas a term of noot lesss thaan thrree moonths but lless tthan oone yeear, tthe prrobatiion peeriod may nnot exxceed one mmonth; if aan empploymeent coontracct hass a teerm off m

39、oree thann one year and lless tthan tthree yearss, thee probbationn periiod maay nott exceeed twwo monnths; and iif an emplooymentt conttract has aa termm of nnot leess thhan thhree yyears or iss openn-endeed, thhe proobatioon perriod mmay noot excceed ssix moonths. An Emplloyer may sstipullate oonl

40、y oone prrobatiion peeriod with any ggiven Emplooyee.No probbationn periiod maay be speciified in ann emplloymennt conntractt withh a teerm too expiire uppon coomplettion oof a ccertaiin jobb or aan empploymeent coontracct witth a tterm oof lesss thaan thrree moonths. The proobatioon perriod sshall

41、be inncludeed in the tterm oof thee emplloymennt conntractt. If an emmploymment ccontraact prrovidees forr a prrobatiion peeriod only, thenn therre is no prrobatiion peeriod and tthe teerm cooncernned shhall bbe thee termm of tthe emmploymment ccontraact. Articlee 20The wagges off a Emmployeee on pr

42、obaation may nnot bee lesss thann the lowesst wagge levvel foor thee samee job with the EEmployyer orr lesss thann 80 ppercennt of the wwage aagreedd uponn in tthe emmploymment ccontraact, aand maay nott be lless tthan tthe miinimumm wagee ratee in tthe pllace wwhere the EEmployyer iss locaated. Art

43、iclee 21An Emplloyer may nnot teerminaate ann emplloymennt conntractt duriing thhe proobatioon perriod uunlesss the Emplooyee iis chaaracteerizedd by aany off the circuumstannces sset foorth iin Artticle 39 annd iteems (11) andd (2) of Arrticlee 40 hhereoff. If an Emmployeer terrminattes ann emplloy

44、mennt conntractt duriing thhe proobatioon perriod, it shhall eexplaiin thee reassons tto thee Emplloyee. Articlee 22If an EEmployyer prrovidees speecial fundiing foor a EEmployyees trainning aand giives hhim prrofesssionall techhnicall traiining, it mmay cooncludde an agreeement speciifyingg a teerm

45、 off servvice wwith ssuch EEmployyee. If the Emplooyee bbreachhes thhe agrreemennt on the tterm oof serrvice, he sshall pay lliquiddated damagges too the Emplooyer aas agrreed. The mmeasurre of the lliquiddated damagges maay nott exceeed thhe traainingg expeenses paid by thhe Empployerr. Thee liquui

46、dateed dammages that the EEmployyer reequirees thee Emplloyee to paay mayy not exceeed thee porttion oof thee traiining expennses aallocaable tto thee unpeerformmed poortionn of tthe teerm off servvice. The reaachingg of aagreemment oon a tterm oof serrvice betweeen thhe Empployerr and the EEmployye

47、e dooes noot afffect tthe raaisingg of tthe Emmployeees llabor compeensatiion duuring the tterm oof serrvice accorrding to thhe norrmal wwage aadjusttment mechaanism. Articlee 23An Emplloyer and aa Emplloyee may iincludde in theirr emplloymennt conntractt provvisionns on confiidentiialityy mattters

48、rrelatiing too mainntainiing thhe connfidenntialiity off the tradee secrrets oof thee Emplloyer and tto inttellecctual propeerty. If a Emmployeee hass a coonfideentiallity oobligaation, the Emplooyer mmay aggree wwith tthe Emmployeee on compeetitioon resstricttion pprovissions in thhe empploymeent c

49、oontracct or confiidentiialityy agreeementt, andd stippulatee thatt the Emplooyer sshall pay ffinanccial ccompennsatioon to the EEmployyee onn a moonthlyy basiis durring tthe teerm off the compeetitioon resstricttion aafter the tterminnationn or eendingg of tthe emmploymment ccontraact. IIf thee Emp

50、lloyee breacches tthe coompetiition restrrictioon proovisioons, hhe shaall paay liqquidatted daamagess to tthe Emmployeer as stipuulatedd. Articlee 24The perrsonneel subbject to coompetiition restrrictioons shhall bbe limmited to thhe Empployerrs seenior managgementt, sennior ttechniicianss and othe

51、rr perssonnell withh a coonfideentiallity oobligaation. The scopee, terrritorry andd termm of tthe coompetiition restrrictioons shhall bbe agrreed uupon bby thee Emplloyer and tthe Emmployeee, annd succh agrreemennt shaall noot vioolate laws and rregulaationss. The terrm, coountedd fromm the termiin

52、atioon or endinng of the eemployyment contrract, for wwhich a perrson aas menntioneed in the pprecedding pparagrraph iis subbject to coompetiition restrrictioons inn termms of his wworkinng forr a coompetiing Emmployeer thaat prooducess the same type of prroductts or is enngagedd in tthe saame tyype

53、 off busiiness as hiis currrent Emplooyer, or inn termms of his eestabllishinng hiss own businness tto prooduce the ssame ttype oof prooductss or eengagee in tthe saame tyype off busiiness, shalll nott exceeed twwo yeaars. Articlee 25With thhe excceptioon of the ccircummstancces sppecifiied inn Arti

54、icles 22 annd 23 hereoof, ann Emplloyer may nnot sttipulaate wiith a Emplooyee pprovissions on thhe beaaring of liiquidaated ddamagees by the EEmployyee. Articlee 26An emplloymennt conntractt shalll be invallid orr parttiallyy invaalid iif: (1) A pparty uses such meanss as ddecepttion oor coeercionn

55、, or takess advaantagee of tthe otther ppartys diffficullties, to ccause the oother partyy to cconcluude ann emplloymennt conntractt, or to maake ann amenndmentt therreto, that is coontrarry to that partyys trrue inntent; (2) Thee Emplloyer discllaims its llegal liabiility or deenies the EEmployyee

56、hiis rigghts; or (3) Manndatorry proovisioons off lawss or aadminiistrattive sstatuttes arre vioolatedd. If the invallidityy or ppartiaal invvalidiity off the emplooymentt conttract is diisputeed, itt shalll be confiirmed by a laborr disppute aarbitrrationn insttitutiion orr a Peeoples Couurt. Artic

57、lee 27If certtain pprovissions of ann emplloymennt conntractt are invallid annd succh invvalidiity dooes noot afffect tthe vaaliditty of the rremainning pprovissions, the remaiining proviisionss shalll remmain vvalid. Articlee 28If an eemployyment contrract iis connfirmeed as invallid annd thee Empl

58、loyee has aalreaddy perrformeed labbor, tthe Emmployeer shaall paay thee Emplloyee laborr comppensattion. The aamountt of llabor compeensatiion shhall bbe detterminned wiith reeferennce too the laborr comppensattion oof Empployeees in the ssame oor a ssimilaar possitionn withh the Emplooyer. CHAPTER

59、R 3 PEERFORMMANCE AND AAMENDMMENT OOF EMPPLOYMEENT COONTRACCTSArticlee 29The Empployerr and the EEmployyee shhall eeach ffully perfoorm itts/hiss obliigatioons inn accoordancce witth thee emplloymennt conntractt. Articlee 30Employeers shhall ppay thheir EEmployyees llabor compeensatiion onn timee an

60、d in fuull inn accoordancce witth thee emplloymennt conntractts andd statte reggulatiions. If an EEmployyer faalls iinto aarrearrs witth thee paymment oof labbor coompenssationn or ffails to maake paaymentt in ffull, the EEmployyee maay, inn accoordancce witth thee law, applly to the llocal Peoplles