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Decree no. 535 of The State Council of the People's Republic of China

The Regulations of the People's Republic of China on the Implementation of the Labor Contract Law, which were adopted at the 25th Executive meeting of The State Council on September 3, 2008, are hereby promulgated and shall come into force as of the date of promulgation.

Premier Wen Jiabao

September 18, 2008

Regulations on the Implementation of the Labor Contract Law of the People's Republic of China

Chapter I General Provisions

Article 1 These Regulations are formulated to carry out the Labor Contract Law of the People's Republic of China (hereinafter referred to as the Labor Contract Law).

Article 2 The people's governments at all levels and the relevant departments of labor administration of the people's governments at or above the county level as well as trade unions and other organizations shall take measures to promote the implementation of the Labor Contract Law and promote the harmony of labor relations.

Article 3 The partnership organizations and foundations established according to law, such as accounting firms and law firms, shall be employers as stipulated in the Labor Contract Law.

Chapter II Conclusion of Labor Contracts

Article 4 Where a branch established by an employing unit as stipulated in the Labor Contract Law has obtained a business license or registration certificate according to law, it may conclude labor contracts with laborers as an employing unit. Those who have not obtained the business license or registration certificate according to law may conclude labor contracts with laborers entrusted by the employing unit.

Article 5 within one month from the date of employment, after written notice by unit of choose and employ persons, laborer not to conclude a written labor contract with unit of choose and employ persons, unit of choose and employ persons laborer to terminate the labor relationship shall be notified in written form, need not pay economic compensation to the employee, but shall pay the laborer in accordance with the actual working hours of labor remuneration.

Article 6 Where an employing unit fails to conclude a written labor contract with a laborer within one month but less than one year from the date of employment, it shall, in accordance with the provisions of Article 82 of the Labor Contract Law, pay twice the monthly wage to the laborer and conclude a new written labor contract with the laborer. Where a laborer fails to conclude a written labor contract with the employing unit, the employing unit shall notify the laborer in writing to terminate the labor relationship and pay economic compensation in accordance with the provisions of Article 47 of the Labor Contract Law.

The time for the employing unit to pay twice the monthly wage to the laborer as mentioned in the preceding paragraph shall be the next day after the expiration of one month from the date of employment, and the deadline shall be the day before the written labor contract is renewed.

Article 7 unit of choose and employ persons from the date of accepting a full year fails to conclude a written labor contract with laborer, in a month from the date of accepting the next day to a year before a full day shall, in accordance with the provisions of article eighty-two of the labor contract law pay twice a month salary to laborer, and as from the date of accepting a full year on the same day is non-fixed term labor contract with laborer, It shall immediately conclude a new written labor contract with the laborer.

Article 8 The register of employees as stipulated in Article 7 of the Labor Contract Law shall include the name, sex, citizenship number, domicile address and present address of the laborer, contact information, form of employment, starting time of employment and term of the labor contract, etc.

Article 9 The starting time for continuous service of over 10 years as stipulated in paragraph 2 of Article 14 of the Labor Contract Law shall be calculated from the date when the employing unit starts to work, including the number of years of service prior to the enforcement of the Labor Contract Law.

Article 10 Where a laborer is assigned to work in a new employing unit from his original employing unit for reasons other than his own, the length of service of the laborer in the original employing unit shall be combined into the length of service of the new employing unit. Where the former employing unit has paid economic compensation to the laborer, the new employing unit shall not calculate the number of years the laborer has worked in the former employing unit when terminating or terminating the labor contract in accordance with the law to calculate the number of years the laborer has worked for the economic compensation.

Article 11 Unless the laborer and the employing unit reach an agreement through consultation, where the laborer proposes to conclude a labor contract with a non-fixed term in accordance with paragraph 2 of Article 14 of the Labor Contract Law, the employing unit shall conclude a labor contract with the laborer with a non-fixed term. The contents of the labor contract shall be determined by both parties through consultation in accordance with the principles of legality, fairness, equality and voluntariness, consensus through consultation and good faith. The provisions of Article 18 of the Labor Contract Law shall apply if there is any disagreement through consultation.

Article 12 The provisions of the Labour Contract Law on open-ended Labour contracts and the provisions on the payment of economic compensation shall not apply to the Labour contracts of public welfare posts provided by the local people's governments at various levels and the relevant departments of the local people's governments at or above the county level with post subsidies and social insurance subsidies for the placement of persons having difficulty in employment.

Article 13 An employing unit and a laborer may not agree on other conditions for the termination of a labor contract other than those stipulated in Article 44 of the Labor Contract Law.

Article 14 If the place of performance of a Labour contract is not the same as the place of registration of the employing unit, the relevant provisions of the place of performance of a Labour contract shall apply to the minimum wage standards for labourers, Labour protection, working conditions, protection against occupational hazards and the average monthly wage standards for staff and workers of the previous year in the local area. If the relevant standards of the place where the employer is registered are higher than those of the place where the labor contract is performed, and the employer and the laborer agree to follow the relevant provisions of the place where the employer is registered, such agreement shall prevail.

Article 15 The wage of the laborer during the probationary period shall not be lower than 80% of the lowest wage of the same post in the unit or 80% of the wage agreed in the labor contract, and shall not be lower than the minimum wage standard of the place where the employing unit is located.

Article 16 The training expenses prescribed in the second paragraph of Article 22 of the Labor Contract Law shall include the certified training expenses paid by the employing unit for the purpose of providing professional and technical training to the laborer, the travel expenses during the training period and other direct expenses incurred for the laborer as a result of the training.

Article 17 Where a labor contract expires but the term of service agreed upon by the employing unit and the laborer in accordance with article 22 of the Labor Contract Law has not expired, the labor contract shall be extended to the expiration of the term of service. If the parties agree otherwise, such agreement shall prevail.

Chapter III Dissolution and Termination of Labor Contracts

Article 18 UNDER any of the following circumstances, a laborer may, in accordance with the conditions and procedures prescribed in the Labor Contract Law, terminate a labor contract with a fixed term, a labor contract without a fixed term, or a labor contract with a term of completion of a certain task with the employing unit:

(1) the laborer and the employing unit have reached a consensus through consultation;

(2) the laborer notifies the employing unit in writing 30 days in advance;

(3) the laborer notifies the employing unit 3 days in advance during the probation period;

(4) The employing unit fails to provide labor protection or working conditions as agreed upon in the labor contract;

(5) The employing unit fails to pay labor remuneration in full and on time;

(6) The employing unit fails to pay social insurance premiums for labourers according to law;

(7) the rules and regulations of the employing unit violate the provisions of laws and regulations to the detriment of the rights and interests of labourers;

(8) Where the employing unit causes the laborer to conclude or modify the labor contract against his true intentions by means of fraud or coercion or by taking advantage of his unfavourable situation;

(9) where the employing unit exempts itself from legal liability or excludes workers' rights in the Labour contract;

(10) where the employing unit violates mandatory provisions of laws and administrative regulations;

(11) Where the employing unit forces labourers to work by means of violence, threat or illegal restriction of personal freedom;

(12) where the employing unit commands in violation of regulations or forces risky operations to endanger the personal safety of labourers;

(13) Other circumstances under which a laborer may terminate his labor contract as stipulated by laws or administrative regulations.

Article 19 Under any of the following circumstances, an employing unit may, in accordance with the conditions and procedures prescribed in the Labor Contract Law, terminate a labor contract with a fixed term, a labor contract without a fixed term, or a labor contract whose term is the completion of a certain task:

(1) where the employing unit and the laborer have reached a consensus through consultation;

(2) The laborer is proved to be unqualified for employment during the probation period;

(3) the laborer seriously violates the rules and regulations of the employing unit;

(4) the laborer commits serious dereliction of duty or engages in malpractice for selfish ends, thus causing great damage to the employing unit;

(5) the laborer establishes labor relations with other employing units at the same time, which seriously affects the completion of the work tasks of the employing unit, or refuses to make corrections upon the request of the employing unit;

(6) the employer concludes or modifies the labor contract against its true intentions by means of fraud, coercion or taking advantage of the employer's bad situation;

(7) the laborer is investigated for criminal responsibility according to law;

(8) the laborer is unable to take up his original work or any other work arranged by the employing unit after the expiration of the prescribed medical treatment period for illness or injury not attributable to work;

(9) where a laborer is incompetent for his work and is still incompetent after training or adjustment to his post;

(10) The labor contract cannot be performed due to a major change in the objective circumstances on which the labor contract is concluded, and the employer and the laborer fail to reach an agreement on altering the content of the labor contract through consultation;

(11) the employing unit conducts reorganization in accordance with the provisions of the enterprise bankruptcy Law;

(12) the employing unit has encountered serious difficulties in its production and operation;

(13) it is still necessary to reduce the number of employees after the modification of the labor contract due to the change of production, major technological innovation or adjustment of business mode;

(14) other major changes have taken place in the objective economic conditions on which the labor contract was concluded, making it impossible to perform the labor contract.

Article 20 Where an employing unit elects to terminate the labor contract by paying an additional month's wage to a laborer in accordance with article 40 of the Labor Contract Law, the additional wage to be paid shall be determined in accordance with the wage standard of the previous month.

Article 21 Where a laborer has reached the statutory retirement age, the labor contract shall be terminated.

Article 22 Where a labor contract whose term is to complete a certain task terminates due to the completion of the task, the employing unit shall pay economic compensation to the laborer in accordance with the provisions of Article 47 of the Labor Contract Law.

Article 23 Where the employing unit terminates the labor contract of the injured workers according to law, it shall, in addition to paying economic compensation in accordance with the provisions of Article 47 of the Labor Contract Law, pay one-time medical subsidy for the injured workers and disability employment subsidy in accordance with the relevant provisions of the state for industrial injury insurance.

Article 24 The certificate of dissolution or termination of a labor contract issued by an employing unit shall clearly state the term of the labor contract, the date of dissolution or termination of the labor contract, the position of work and the number of years of work in the unit.

Article 25 Where an employing unit dissolves or terminates a labor contract in violation of the provisions of the Labor Contract Law and pays compensation in accordance with the provisions of Article 87 of the Labor Contract Law, it shall not pay economic compensation. The calculation period of compensation shall be calculated from the date of employment.

Article 26 Where an employing unit and a laborer agree on a term of service and the laborer dissolves the labor contract in accordance with the provisions of Article 38 of the Labor Contract Law, the termination shall not be deemed as a violation of the term of service, and the employing unit may not require the laborer to pay liquidated damages.

In any of the following circumstances, where the employer and the laborer terminate the labor contract that stipulates the service period, the laborer shall pay liquidated damages to the employer in accordance with the provisions of the labor contract:

(1) the laborer seriously violates the rules and regulations of the employing unit;

(2) the laborer commits serious dereliction of duty or engages in malpractice for selfish ends, thus causing great damage to the employing unit;

(3) the laborer establishes labor relations with other employing units at the same time, which seriously affects the completion of the work tasks of the employing unit, or refuses to make corrections upon request of the employing unit;

(4) the employer concludes or modifies the labor contract against its true intentions by means of fraud, coercion or taking advantage of the employer's bad situation;

(5) the laborer is investigated for criminal responsibility according to law.

Article 27 The monthly wage of economic compensation stipulated in Article 47 of the Labor Contract Law shall be calculated on the basis of the wages due to the laborer, including hourly wage or piecework wage and monetary income such as bonus, allowance and subsidy. Where the average wage of a laborer in the 12 months prior to the rescission or termination of the labor contract is lower than the local minimum wage standard, the local minimum wage standard shall be applied. Where a laborer has worked for less than 12 months, the average salary shall be calculated according to the number of months actually worked.

Chapter IV Special Provisions on Labor Dispatch

Article 28 Where a labor dispatch unit established by an employing unit or its subordinate unit with investment or partnership dispatts laborers to its own unit or subordinate unit, it shall be a labor dispatch unit that shall not be established in accordance with Article 67 of the Labor Contract Law.

Article 29 Employing units shall perform the obligations prescribed in Article 62 of the Labor Contract Law and safeguard the legitimate rights and interests of dispatched laborers.

Article 30 Labor dispatch units shall not employ dispatched laborers in the form of part-time labor.

Article 31 Economic compensation for termination or termination of labor contracts by labor dispatch units or dispatched laborers shall be made in accordance with the provisions of Articles 46 and 47 of the Labor Contract Law.

Article 32 Where a labor dispatch unit dissolves or terminates the labor contracts of dispatched laborers in violation of law, the provisions of Article 48 of the Labor Contract Law shall be followed.

Chapter V Legal Liability

Article 33 Where an employing unit violates the provisions of the Labour Contract Law on the establishment of the register of staff and workers, the Labour administrative department shall order it to make corrections within a prescribed time limit. Those who fail to correct within the time limit shall be imposed a fine of not less than 2,000 yuan but not more than 20,000 yuan by the labor administrative department.

Article 34 If the employing unit fails to pay twice the monthly wages or compensation to the laborers in accordance with the provisions of the Labor Contract Law, the labor administrative department shall order the employing unit to pay.

Article 35 Where an employing unit violates the provisions of the Labor Contract Law and these Regulations on labor dispatch, the labor administrative department and other relevant competent departments shall order it to make corrections. If the circumstances are serious, a fine of not less than 1,000 yuan but not more than 5,000 yuan shall be imposed on each dispatched worker; The dispatching unit and the employing unit shall be jointly and severally liable for damages caused to the dispatched workers.

Chapter VI Supplementary Provisions

Article 36 The labor administrative departments of the local people's governments at or above the county level shall handle complaints and reports against acts violating the Labor Contract Law and these Regulations in accordance with the Provisions of the Regulations on Supervision of Labor Security.

Article 37 Where a dispute arises between a laborer and an employing unit over the conclusion, performance, modification, dissolution or termination of a labor contract, it shall be settled in accordance with the Provisions of the Labor Dispute Mediation and Arbitration Law of the People's Republic of China.

Article 38 These Regulations shall go into effect as of the date of promulgation.