In March 2014, the Meeting Minutes of 2013 Shenzhen Seminar on Complicated Issues of Labor and Employment Disputes was promulgated, mainly addressing the following issues:

1. Employment relationship between aliens and new employer

Where an alien separates with the registered employer appearing on his/her work permit and joins a new employer, but has not changed the registered information on the work permit, it should be deemed no employment relationship established between the alien and the new employee.

2. Statute of limitation for filing arbitration case claiming for compensation for unused annual leave

In-service employee should file a case within 2 years after the default year; separated employee should file a case within 1 year after the separation.

3. Compensation for additional annual leave

Where the employer and the employee have an agreement on the entitlement of annual leave in addition to the statutory annual leave, and agrees on the compensation standard for the unused additional annual leave, even if such a standard is lower than the compensation standard for statutory annual leave salary, such an agreement should be deemed valid. However, if there is no agreement on whether to pay compensation or it is stipulated that there should be compensation but there is no specific compensation standard, the compensation should be paid in accordance with the statutory annual leave salary.

4. Employee management on seconding its employees to another entity to work

Where the employer seconds its employees to another entity to work (other than labor dispatch), for example as store sales, salesmen, technical service staff accredited to the customer based on a phased project or medium or short term in IT industry, etc., and these employees are under the service-accepting company’s management, then if such employees violate the policies of the service-accepting company, and fall into any of the following circumstances, the employer may take disciplinary actions against the employees:

(1) The employer agrees with the employees or it is stipulated in the employer’s internal policies that, the seconded employees must comply with the service-accepting company’s policies and be under its management, at the meantime the employees are aware of the service-accepting company’s such policies;

(2) If the aforementioned agreements or stipulations are in vacant, the employees’ misconducts in the service-accepting company severely violate the public order and good custom, or the principle of good faith.

In addition to the above, the seminar defined other solutions to issues such as “calculation of remunerations during the suspension of work due to the work-related injury should include overtime pay”.