Human Resources and Social Security Department issued Measures for the Evaluation of the Labor Protection and Lawabiding Rating Evaluation of Enterprises (hereinafter referred to as the “Evaluation Measures”) on July 25, 2016, and decided to carry out the labor and social security credit rating evaluation of enterprises from January 1, 2017.

In accordance with Evaluation Measures, Human Resources and Social Security Department will evaluate the labor and social security credit rating evaluation of enterprises in view of nine items of enterprise status as follows: (i) the status of development of internal labor and social security regulations; (ii) the status of execution of labor contracts between enterprises and their employees; (iii) the status of compliance with the provisions of labor dispatch; (iv) the status of compliance with regulations prohibiting the use of child labors; (v) the status of compliance with provisions on special labor protections of female employees and underage employees; (vi) the status of compliance with the provisions of working hours, rest and vacation; (vii) the status of payment of salaries and implementation of minimum salary standard; (viii) the status of participation in social insurances and payment of social insurances premiums; and (ix) status of compliance with other labor security laws, regulations and rules.

Evaluation Measures prescribe that, the labor and social security credit rating evaluation of enterprises shall be conducted on an annual basis. The evaluation result will be filed to enterprises archive of business ethics of labor and social security and be kept for at least 3 years. It is understood that, in the future, Human Resources and Social Security Department will establish the exchange of credit information sharing mechanism with the industry and commerce, financial, housing and urban construction, taxation and other departments and trade union organizations, to reward or discipline the enterprises credit jointly.