China Employment Compliance .Many foreign companies
in china are misunderstanding the situation where the slightly economic
growth will lead the government to favor foreign employers. However the
truth is that foreign employers do not protest while the Chinese
employees do. Moreover the Chinese government values stability above
nearly all else thus our China lawyers are seeing this play out in the
following ways to improve the situation for its workers
China lawyers are seeing this play out in the following ways:
• The Chinese government (especially the tax authorities) is relentlessly pursuing foreign companies with China employees but no business registered in China. This started picking up in early 2015 and it went into overdrive just a few months ago. One of the reasons for this crackdown the desire to force foreign companies to retain employees 100% within the law, so that these employees will have fast and easy legal recourse against their employers for labor and employment law violations.
• China’s government,
courts and administrative bodies are getting tougher on foreign
companies that do not comply with China’s labor and employment laws.
Like pretty much everything else related China’s employment laws, the
extent to which this is happening varies by location.
• China employers that
violate China’s labor protection laws will be named “and shamed.”
Employers are also getting graded on their compliance with China’s labor
and employment laws.
Beginning earlier this
year, China enacted Measures for Announcing Major Violations of Labor
Security and the Measures for Credit Rating Evaluation of Enterprise
Labor Security Compliance. These measures evidence the government’s
seriousness regarding employment law compliance and they give the
government new powers to ensure compliance. According to the Supreme
People’s Court, new labor disputes accepted by the Chinese court system
totaled 483,311 in 2015, up a whopping 25 percent from the previous
year. These numbers have been rising in a straight line upward ever
since. China employees are getting smarter and more proactive about
enforcing their legal rights against their employers, especially as
against foreign employers.
The new measures
include publicizing “serious” employer violations in newspapers and
magazines and on TV. These public announcements will include the
employer’s name, address, and registration code, along with the full
name of the legal representative or key person in charge and the exact
violation and fines or other sanctions imposed. Just imagine what this
will do for your company’s reputation and your ability to hire new
employees. Will individuals who have been named and shamed want to leave
China? Will they have to do so?
In addition to naming
and shaming, employers will receive A, B or C grades based on their
compliance in various areas, including the following:
• rules and regulations
• employment contracts
• misuse of third party hiring agencies (a/k/a labor dispatch services)
• child labor laws
• overtime and vacation compliance
Since China Labor Law
is complicated, properly recruiting the employees in China is crucial
for the foreign employers. The third party hiring agencies like Talent
Spot can be helpful. We can facilitate your HR solutions including
temporary/permanent staffing, executive search, RPO, on-site managed
recruitment, payroll services and so on, click Talent Spot to check out.