Investing In China Proposed Labor Contract Law
If you are considering setting up a company in the People’s Republic of China (the PRC) you should be aware that Chinese law is more protective of employees than the laws of many western nations, particularly the United States. The current PRC Labor Law was enacted in 1994; however, a new PRC Labor Contract Law, intended to supplement the Labor Law, is expected to come into force at the end of 2006. This new law contains both bad news and good news from the point of view of the foreign investor; however, in general it further strengthens the protection of employees.
The Bad News:
Severance Pay
Because it is difficult under the PRC Labor Law to terminate open-term labor contracts, employers usually prefer fixed terms. The Labor Contract Law will address this issue by requiring employers to pay severance compensation to employees on fixed term labor contracts if these contracts are not renewed at the end of the contract term. The proposed compensation is at least one month’s salary for each year of service.
Company Rules/Employee Handbooks
No provision in the employee handbook or other rules affecting the employee’s “personal interest” may be put into force absent consultation with the labor union or other employee representative body (under Chinese law, virtually all employees are required to be unionized).
A Shorter Probationary Period
Currently, the probationary period may be agreed between the employer and employee in the labor contract, but the maximum probation may not exceed 6 months. The Labor Contract Law shortens this period to one month for non-technical work and two months for most technical work (the six-month maximum is still retained for senior technical work, probably because these highly skilled employees are seen as less vulnerable in the employment market. This is significant because it easier to fire an employee during the probationary period than afterwards.
Non-Competition Clauses
Foreign invested companies in particular have tended to insert post-employment non-competition clauses into labor contracts in order to protect their intellectual property rights in China’s wild west business atmosphere. Although the Labor Contract Law allows post-employment non-competition restrictions, it will limit their enforceability to two years and restrict the geographical area of applicability to areas where actual competition is likely to occur. In this respect the reform will render Chinese law more similar to US law, since the current Labor Law does not impose any geographic restrictions at all (but does permits a maximum duration of up to three years). The Labor Contract Law goes even further, however, by requiring the employer buy a non-competition clause by paying a minimum compensation equal to the employee’s annual salary upon termination of the labor contract. It is still unclear what, if any compensation will be due the employee if the period of restriction is less than a year.
Contract Interpretation
Any ambiguous term in a labor contract will be construed in favor of the employee. This rule does little more that codify what has long been the prevailing practice in PRC courts.
Representative Offices
The current Labor Law requires Representative Offices to go through designated agencies such as FESCO (similar to Manpower in the United States) in order to hire employees. The new Labor Contract Law offers Representative Offices greater flexibility by allowing them to directly contract with employees for their first year of employment.
In summary, the new Labor Law will restrict foreign investor’s flexibility and make it more expensive for them to operate. The only good news is that Representative Offices will find it somewhat easier to operate. Typically, the new Labor Contract Law does not bother to define terms like technical, senior technical; and personal interest However, foreign investors have long been used to waiting months and even years for ambiguous terms in Chinese law to be defined through the further issuance of implementing regulations to supplement the main law; meanwhile the government’s actual implementation of the law in particular cases will be closely watched.
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[Top]Understanding Your Legal Team – More Than Just A Lawyer
Sooner or later, you are going to be introduced to the legal profession. This will usually require you to hire a lawyer. This is a surprising task for many people because they don’t realize that a legal team is much more than just a lawyer. In this article, we take a look at the usual members.
The legal team obviously starts out with the lawyer in question. This is the person you meet with when considering who you are going to hire. This person is known as the lead attorney if they are in a law firm or just -the lawyer- in a sole practitioner situation. A law firm has two or more attorneys while a sole practitioner is just one lawyer. Regardless, the lawyer acts more as a CEO of the legal team than you might realize. He or she will guide the team during the workup to trial, but other people will do most of the actual work. This is run of the mill in the legal profession, but often surprises clients.
Associate
The associate is a lawyer that does most of the actual work on a case leading up to trial. The associate tends to be younger and is gaining experience until they are ready to actually go to trial. The associate may issue requests to the other party, take depositions and attend basic mandatory court hearings. The associate will also often write letters updating you on the case. The lead attorney will read these to make sure the case is being handled they way he or she desires.
Paralegal
The paralegal is not an attorney, but is more of an assistant. The paralegal is charged with much of the grunt work. This means gathering and organizing documents. It also means speaking with you, the client, regarding any questions you have. A good paralegal is worth their weight in gold for a busy lawyer.
Secretary
The secretary is the gatekeeper for the attorney. The secretary is a natural skeptic given all the sales calls that come in during the day. Being friendly with the secretary is a smart move. You are much more likely to get through the gate than be told the lawyer is in court or out at a deposition.
It is the rare lawyer that works alone on a case. The amount of grunt work is simply too excessive for it to be feasible. When dealing with your legal team or interviewing a perspective lawyer, make sure to know all the parties involved. It will make things run smoother.
[Top]Buy Methiopropamine Or Camfetamin – But Be Legally Secured
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Camfetamine is termed as N-methyl-3-phenyl-norbornan-2-amine. It is the analogue of in-famous Fencamfamine. At the moment, it is available only at leading online research chemicals stores. Many scientists are keen to use it to analyze it chemical and physical properties. Methiopropamine, also known as MPA, is thiophene-based analog of methamphetamine. It is chemically written as N-methyl-1-(thiophen-2-yl) propan-2-amine. It came into existence in 1942. It is almost similar to Methamphetamine. It became popular among the youngsters with the nick names of Whiz, Speed, Phet and Billy. Its sales in UK was allowed in December 2010. Just after its introduction, it gained popularity among the masses as recreational drug but very soon it was turned down because of its specific side effects as well as almost no interest of pharmaceutical industry.
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[Top]Get Great Legal Representation By Hiring A Seasoned And Trustworthy Employment Attorney
There are great opportunities in New York; individuals with the right mindset and expertise can even make their life successful in this city. Definitely, there is a lot of competition happening in this city. Nonetheless, this doesn’t stop individuals from giving the very best of their skills. Alternatively, the Big Apple also seems like a battle field of legal complaints. One of these lawsuits incorporate employment matters. In scenarios like this, it is actually important to employ an employment lawyer with a great reputation.
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