Amendment of “Labor Contract Law of People’s Republic of China” (“Amendment”) has been promulgated

On Dec. 28, 2012, Amendment has been promulgated, which will be taken into effect on Jul. 1, 2013. Amendment has stipulated the restrictions on labor outsourcing, mainly including the following aspects:

Make clear the definition of positions: “temporary” position refers to a temporary role of less than six months; “ancillary” position refers to a position providing support services to the primary business of the employer; and “replaceable” position refers to a position in which the temporary worker temporarily replaces an existing employee where the employee is unable to work due to further study, leave or other reasons.

Restrictions on the total amount of labor outsourcing: the employer shall strictly control the amount of temporary staff, which shall not exceed a certain percentage based on the whole amount of its staff. The certain percentage will be regulated by Ministry of Human Resources and Social Security.