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  • 2024-06-01
  • 5 minutes Read
How to deal with the labor disputes related to foreign employees?

According to the “Administrative Provisions on Employment of Foreigners in China” (hereinafter referred to as the “Provisions”), an employer hiring a foreigner shall apply an employment permit for the said foreigner. Many provinces and cities require the employer to provide a labor contract with the foreign as stipulated in Article 17 of the “Provisions” for applying the employment permit. However, considering that many foreigners are temporarily dispatched to work in subsidiaries in China and maintain the employment with the parent companies, some provinces and cities accept an assignment letter or a dispatch letter instead of a labor contract where the…

  • 2024-05-06
  • 4 minutes Read
The “Implementing Regulation for the Law of the People’s Republic of China on the Protection of Consumer Rights and Interests” will come into effect on July 1, 2024.

With the development of the internet economy, there have been some new changes in behaviors that infringe on consumer rights and interests. In the traditional consumption market, problems such as false advertising, unfair format clauses, and infringement of prepaid consumption, are prominent. In the online consumption market, problems such as price discrimination, big data fraud, excessive collection of consumer’s personal information, and online live sales fraud, are severe. Therefore, the “Implementing Regulation for the Law of the People’s Republic of China on the Protection of Consumer Rights and Interests” (hereinafter referred to as the “Regulations”) have been issued and will…

  • 2024-05-06
  • 5 minutes Read
The negative impacts to the company whose legal person shareholder is deregistered without notification.

Company A had three legal person shareholders, one of which was deregistered without notifying A. Due to the absence of this shareholder, and the director appointed by it, A faced many challenges, including the effectiveness of resolutions of the shareholders’ meeting and the board of directors, as well as the procedures for business registration, and etc. With the slowdown of economic growth, and the amendment on the paid-up capital system as stipulated in the revised “Company Law” in 2024, A’s challenges may become more and more common. However, the current and the revised “Company Law” provide rules in dealing with…

  • 2024-05-06
  • 4 minutes Read
Does death from overwork belong to a work-related injury?

Lau works as a packaging worker at a company in Dongguan. On October 13, 2017 at 21:22, Lau got off work. On the next day at 8:00, Lau’s wife contacted Lau’s supervisor to ask for a sick leave on his behalf. Lau went to the hospital for medical treatment. At 11:30, Lau was lack of consciousness, and died due to “sudden death” after being sent to the hospital for rescue. Lau’s wife applied for the work-related injury recognition. The local human resources and social security bureau reviewed relevant information, and decided Lau’s death should not be recognized as a work-related…

  • 2024-04-03
  • 3 minutes Read
The revised “Provisional Regulations on Enterprise Information Disclosure” will come into force from May 1, 2024

On March 10, 2024, the State Council issued the “Decision of the State Council on Amending and Abolishing Some Administrative Regulations”, in which, the “Provisional Regulations on Enterprise Information Disclosure” (hereinafter referred to as the “New Regulations”) has been partially revised. The key changes are as follows: To add the investigation right The New Regulation adds Article 16, which stipulates that the market regulatory authority may exercise functions and powers when investigating into and punishing the acts that are suspected of violating the provisions of the regulation. The specific functions and powers include: (1) entering the business premises of an enterprise to…

  • 2024-04-03
  • 3 minutes Read
Common risks and preventive measures regarding headhunting

Recruiting talent through headhunting companies is an important way for many companies. However, disputes arising from headhunting agency services are not rare in practice. How can we reduce such risks and take preventive measures? Firstly, we have to figure out the common causes of such disputes. In practice, the causes could be mainly classified into the following categories: The first cause is the “collision order”. When recruiting, companies may use multiple channels, including public recruitment, internal referrals, and posting job requirements to several headhunters. Different channels may lead to the same candidate. For example, if candidate A is recommended via internal referrals and a headhunter,…

  • 2024-04-03
  • 4 minutes Read
An employee is transferred to a new employer for reasons not attributable to himself, whether the frequency of the labor contract signed with the original employer shall be consolidated into the frequencies of the labor contract signed with the new employer?

Jia and Company A, a Beijing company, signed a labor contract which expired on Feb. 16,2016. After the expiration, Jia was arranged by Company A to sign a 3-years labor contract with Company B, a wholly-owned subsidiary of Company A. During the implementation of the contract with Company B, Company A sold its share to a third party. Before the expiration day, Company B sent a notification of termination to Jia, notifying him that the contract would be terminated on the expiration date and the company would pay economic compensation. Jia hold that he had already signed a fixed-term contract for twice, so Company…

  • 2024-03-01
  • 4 minutes Read
The “Penalty Provisions for Fines for Work Safety Accidents” will be implemented from March 1, 2024

The “Penalty Provisions for Fines for Work Safety Accidents (Trial)” (the “2015 version”) is published and implemented in July 2007, and revised in 2011 and 2015. Due to the revision of the “Law on Administrative Penalties” and the “Work Safety Law” in 2021, and the issuance of the “Opinions on Further Regulating the Formulation and Management of Administrative Discretionary Power Benchmarks” by the State Council in 2022, the Ministry of Emergency Management of the People’s Republic of China approved the “Penalty Provisions for Fines for Work Safety Accidents” (the “2023 version”) on December 25, 2023. Compared to the 2015 version,…

  • 2024-03-01
  • 9 minutes Read
The Impact of the 12th Amendment to the “Criminal Law” on Anti-fraud policies of Foreign-funded Enterprises

The 12th Amendment to the “Criminal Law” was reviewed and approved by the Standing Committee of the National People’s Congress on December 29, 2023, and will come into effect on March 1, 2024. This revision will bring a significant impact on anti-fraud policies of foreign-funded enterprises. To add liabilities to the crime of offering bribes, which may curb this crime, but also may reduce the possibility to persuade the bribers to provide evidence. It is very difficult to find evidence of bribery, because of its concealment. Many bribes are in cash, or transferred to a third party by which the…

  • 2024-03-01
  • 5 minutes Read
Who bears the responsibilities for work-related injuries during the "gap period"?

Generally speaking, an employer should complete the social insurance registration for new employee from the date of employment, by which can avoid the risk that the employer has to bear all liabilities when a new employee suffers a work-related injury before the employer completes the registration (referred to as the “gap period”). However, in practice, different companies have different practices. Some complete such registration on the date of employment; some complete such registration in a specified period every month, such as from 15th to 20th in each month, so those employees whose employment date is latter than 20th of the…