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  • 2019-09-15
  • 4 minutes Read
Risk Prevention of Software Service Contracts

More and more companies apply software in handling business operations. They have to sign a software service contract (“SSC”) or a software development contract (“SDC”). In practice, many companies only pay attention to the payment article, which stipulates that the commissioning party would pay upon the acceptance of the deliveries. This opinion is very dangerous. In fact, in the 57th issue of the “Legal Notebook”, we have analyzed the common risks and risk prevention methods from the perspective of the commissioning party in the paper “Risk Prevention for Software Development Contracts”. We will analyze the risks and risk prevention methods…

  • 2019-09-15
  • 3 minutes Read
Feasibility and Attentions to Early Retirement System

An enterprise with a longer history would have more employees who are close to the retirement age. Some of those employees may have less improvement in skills, and be lack of energy. If they still occupy the positions, the successors will have fewer opportunities to practice. Under such circumstance, more and more enterprises are considering to establish the early retirement system. In practice, the early retirement system generally includes 3 categories: (1) to terminate a labor contract by negotiation, and the enterprise would pay a compensation in a lump sum; (b) the employee quits the position, and does not have…

  • 2019-08-15
  • 3 minutes Read
Several Opinions of Shanghai Municipal People's Government on Promoting Development of Regional Headquarters of Multinational Companies in the Municipality will be implemented on September 1, 2019

The Shanghai Municipal People’s Government has released the beneficial policy on promoting development of regional headquarters of multinational companies from 2002, and updated the relevant policy every few years. Recently, in order to further attract foreign investments, and level up the quality of foreign investments, the government has updated the policy again, which is the “Several Opinions of Shanghai Municipal People’s Government on Promoting Development of Regional Headquarters of Multinational Companies in the Municipality” (Hu Fu Gui [2019] No.30, hereinafter referred to as the “Opinions”). The main points are as follows: 1. To reduce the determination standards (1) To relax…

  • 2019-08-15
  • 3 minutes Read
Is It Risky to Ignore the Social Insurance of Foreigners?

In the past many years, foreign-invested companies would purchase commercial insurance for foreigners instead of participate in social insurance, because China had not set any requirements in any laws or regulations, and normally, the offshore parent companies would participate in social insurance for foreigners in their own countries. The “Social Insurance Law” has come into force on July 1, 2011, in which it stipulates that foreigners employed within the territory of the People’s Republic of China shall participate in social insurance analogically in accordance with this Law. And soon afterwards, the “Interim Measures for Social Insurance System Coverage of Foreigners…

  • 2019-07-15
  • 3 minutes Read
“Interim Provisions on Prohibiting Monopoly Agreements” will come into force on Sep. 1, 2019

For a long time, the monopoly behaviors could be regulated by 3 departments, which are the SAMR, NDRC and MOFCOM. The cross-administration makes the original “Interim Provisions on Prohibiting Monopoly Agreements” (the “Original Provisions”) issued in 2011 by SAIC (the predecessor of SAMR), could not be implemented smoothly. On Mar. 2018, CPC Central Committee issued the “Proposal for Deepening the Reform of the Party and State Institutions”, in which SAMR has been assigned as the department which shall conduct the anti-monopoly enforcement comprehensively. Recently, SAMR has issued 3 supplementary regulations for the “Anti-monopoly Law”. The 3 regulations include, the “Interim…

  • 2019-07-15
  • 4 minutes Read
Legal Risks Related to Advertising Creativity

Bei Ji Rong (“BJR”) Underwear had published a creative advertisement. The spokesperson Zhao Benshan wore the BJR thermal underwear. He was hijacked by aliens, and frozen in an ice brick. After unfrozen, he was uninjured, and he told the aliens: “Keep Warm, Wear BJR, everyone knows on the earth.” Chen brought a piece of BJR thermal underwear. Later then, he filed a lawsuit against the manufacturer and Zhao Benshan. He claimed that the advertisement was a false advertisement. Although there is controversy in practice, both the court of the first instance and the second instance had rejected Chen’s claim. The…

  • 2019-07-15
  • 4 minutes Read
Getting Injured or Suffering from a Disease During the Lunch Break, Is it a Work-Related Injury?

During the lunch break, Yang went home to get a work operation permit, and got injured in a traffic accident on his way to work. Yang filed an application for ascertainment of the work-related injury (“WRI”). However, the authority determined that this was not a WRI. Both the courts of the first instance, and second instance supported the authority’s decision [(2017) Hu 01 Xing Zhong No.11]. Coincidentally, Wu suffered from a sudden disease during the lunch break, and died within 48 hours due to ineffective rescue. The local authority determined that this was a WRI. The employer filed an objection…

  • 2019-06-15
  • 3 minutes Read
Provisions (V) of the Supreme People's Court on Several Issues concerning the Application of the Company Law (“Provisions V”) has come into force on 29 Apr. 2019

Due to the lack of the laws and regulations on the protection of shareholders’ rights and interests, there are disputes in the judicial practice. In order to solve those disputes, on 22 Apr. 2019, the “Provisions V” was adopted at the 1,766th session of the Judicial Committee of the Supreme People’s Court, which has come into force on 29 Apr. 2019. The main contents are as follows. 1. Where a related party transaction compromises the interests of a company, even the required procedures have been conducted, the court could still require the relevant shareholders to undertake liabilities. Article 1 of…

  • 2019-06-15
  • 5 minutes Read
Is There Legal Risks in Using Videos Taken by Others for Promotion?

Liu took a short video for his self-driving trip to skiing by driving a Brand A car, and shared such video on the online platform. Company A used this video in a client’s advertisement, which was released via WeChat official account and Weibo. Liu filed a lawsuit against Company A for the infringement of copyright. Recently, the court decided that Company A had infringed Liu’s copyright, and ordered Company A to apologize and compensate RMB500, 000 to Liu. This case is the first copyright infringement case by using a short video in an advertisement. And the compensation amount is the…

  • 2019-06-15
  • 4 minutes Read
Pay Attention to the Leaving Reason Stated in the Employment Separation Certificate

Zhou was dismissed by Company A, and the leaving reason stated in the Employment Separation Certificate (“ESC”) covered two aspects, (a) Zhou has seriously violated the company’s rules and procedures; and (b) Zhou is incompetent to his position. Zhou insisted that such words would affect his job search, and required Company A to delete such words. Company A refused, and Zhou filed to the labor arbitration committee. Finally, the court rejected Zhou’s claim. The main legal basis for issuing an ESC is Article 24 of the “Regulations for the Implementation of the Labor Contract Law” (the “Regulations”), which requires the…