(Effective Date 1994.08.11) Article 1 The regulations are formulated in line with State laws and administrative regulations to guarantee the legal rights and interests Article 2 The regulations are applied to the Sino-foreign joint equity ventures, Sino-foreign cooperative ventures, solely foreign-funded Article 3 The labor administrative departments of the people’s governments at county and above level exercise supervision over the Article 4 The statute and system of the FFEs must not go against the State laws and administrative regulations. Article 5 The FFEs may decide by themselves the time, conditions and ways of the employment and the number of personnel they employ in The FFEs may recruit employees from the employment services which have confirmed by the labor department at the localities of The FFEs must not recruit the employees who are still employed by other employers and are forbidden to use child laborers. Article 6 The FFEs should employ their Chinese employees within China; whereas there is a real need to employ foreign personnel or personnel Article 7 The FFEs should establish certain training programmes for their employees. Those who are required to do technical work or to Article 8 Labor contracts are concluded in written form between individual employee and the FFEs. Trade unions (elected The content of the labor contracts and the collective contracts should conform with relevant State laws and administrative Article 9 The labor contracts should be appraised and verified at the local labor administrative department within one month after they Article 10 Labor contracts terminate when their operation terms expire or conditions on which both parties agree to terminate the contracts A labor contract may be revised upon agreement of both parties through consultation and due formalities should go through for Article 11 The FFEs or the employees may terminate the labor contracts in one of the following cases: 1. Parties of the contract reach an agreement for the termination through consultations; 2. A FFE may terminate the labor contract during the trial employing period of a certain employee when the employee is proved 3. An employee may terminate the labor contract if forced to work for the FFEs under violent treatment, threat, or imprisonment Article 12 FFEs may terminate the labor contracts after soliciting the opinion of the trade union in one of the following cases, but 1. An employee inflicts an ill or injury not on post and thus cannot do the original work or other assignments by the FFE after 2. An employee can still not do the work after training or reassignment; 3. A contract fails to be carried out due to changes of conditions after the contract is signed and both sides cannot reach an agreement 4. Other matters which are set in laws and administrative regulations. Article 13 The employer cannot terminate the labor contract when an employee is certified of losing or partly losing work ability due The time limit for medical treatment of an employee who is ill or gets injured not because of work is set according to the current Article 14 The wage policy of the FFEs should follow the principle of equal pay for equal work. Wages of the employees should be raised The minimum payment for a legal working hour of an employee in FFEs must not be lower than the standard for the local minimum payment. Article 15 The FFEs must pay the employees cash wage in time and adequately at least once every month and withhold and pay the income Article 16 The FFEs should make account of the wages of the employees in line with relevant regulations and report the account to the local Article 17 FFEs must join in old-age, unemployment, medical, on-job injures, child-bearing and other social insurance for their employees Article 18 The FFEs should establish the system of “Labor Manual” and “Old-Age Insurance Manual” for the employees, recording the age, Article 19 FFEs should pay living allowance to employees whose labor contracts terminated in accordance with Clauses 1 and 3 Article 11, Article 20 The standards of the living and medical treatment allowances are calculated according to the employees, working years in the The base for the living and the medical treatment allowances is the average monthly pay for the six months before the labor Article 21 Whereas a FFE disbands in line with relevant regulations or the labor contract is terminated with the agreement of both parties Article 22 The current employees of the FFEs enjoy the welfare treatment in accordance with relevant State regulations. Article 23 FFEs should draw a certain amount of housing fund for their Chinese employees in line with the regulations of the local people’s Article 24 Employees of FFEs enjoy leaves for festivals, vacations, public holidays, visiting parents or spouses and handling funeral Article 25 If the two sides cannot solve through consultations the disputes that occur between the FFEs and the trade unions or the Article 26 FFEs should follow the State regulations for the handling of labor disputes, labor safety and hygiene conditions, report Article 27 FFEs or the employees should bear responsibilities for compensation if they violate the labor contract, infringe upon Article 28 Whereas a FFE violates this set of regulations in recruiting employees, the local labor administrative department may impose Article 29 Whereas an employees’ wage of a FFE is lower than the local minimum wage standard, the local labor administrative department A FFE should correct at once the decision to ask employees to work extra hours and if it fails to do so, it will be imposed a Article 30 A FFE that does not go through the formalities of social insurance for the employees should do it in a set time in line with Article 31 FFEs should be ordered to correct or be closed to set the thing straight in a set time if it violates regulations about Article 32 An enterprise that obstructs or refuses the labor supervision by the labor administrative department will be imposed a fine less Article 33 The above-mentioned fines may only be imposed after the FFE refuses to correct even after the local labor administrative department Article 34 The above-mentioned administrative punishments are carried out by the labor administrative department according to laws and all Article 35 The regulations are also applied to the joint equity- ventures, cooperative ventures, solely owned enterprises and limited- Article 36 The Chinese Ministry of Labor is enpost_titled to interpret this set of regulations. These regulations come into force upon its promulgation and shall dominant should there be any conflict between the regulations
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