Page 101 - DMGT516_LABOUR_LEGISLATIONS

Labour Legislations

Notes 1. When the employee suffers from sickness or non-working related injury but is yet in the
designated medical care period, except those as defined in the Items 1, 3, 4, of Article 13 of

these Regulations;
2. When the employee suffers from occupational disease or work related injury and is in
medical care and recuperation period;
3. When the female employee is in pregnancy, maternity and breast feeding period, but
excluding those as defined in the Items 1, 3, 4 of Article 13 of this Regulation;

4. When the labour contract has not expired and the circumstance under which to dismiss the
employee does not conform to article 13 of this Regulation.
Conditions imposed on Foreign Enterprise

Due to work related injury or occupational diseases, the employees of the foreign invested

enterprise, after the medical care period are identified by the Labour Assessment Commission
as losing working capacity to different extent. The termination and dissolution of their labour
contract must be implemented according to the following terms:
1. The foreign invested enterprise must not terminate or dissolve the labour contract of those
who have completely lost working capacity
2. The foreign invested enterprise must not terminate or dissolve the labour contract of those
who have greatly lost working capacity, but the foreign invested enterprise may terminate
the labour contract upon an agreement with the employee
3. The foreign invested enterprise must not dissolve the labour contract of those who have
partially lost working capacity.
The foreign invested enterprise must implement the relevant regulations by the State and the
Shangai Municipality to make economic compensation for those employees whose labour contract
is terminated according to the Items 2, 3 of the second clause of Article 15 of this Regulation.
Other Articles talk of compensation on retrenchment or lay off, medical allowances residential
facilities, payment of wages, insurance, welfare and the like. There are provisions that make it
obligatory to pay overtime wages for extra working hours. Article 17 says that “any party that
asks to dissolve the labour contract must seek the opinion of the trade union of the enterprise
and inform the other party in written form thirty days prior to the dissolution. But in the case the
dissolution of the labour contract proceeds according to Items 1, 3, 4 of Article 13, and Items 1, 2,
3 of Article 16 of these regulations, the procedure of prior information to the other party may be
considered unnecessary.
Any party that violates the labour contract shall bear the responsibilities of violation of the
contract and of economic compensation”.

Resolution of Labour Disputes

According to Article 37, “Labour disputes between the foreign invested enterprise and its
employees may be settled through consultations between concerned parties; should the
consultation fail, the concerned parties may apply to the labour dispute mediation committee
of the enterprise for mediation; should mediation fail, the concerned parties may apply to the

labour dispute arbitration committee for arbitration; either party that is not satisfied with the
adjudication of arbitration may bring the case to the people’s court of the district of country
where the enterprise is located within 15 days upon the reception of the adjudication.”

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