Compared to the previous rule on the same subject, these regulations omit the part concerning the arbitration jurisdiction over labour disputes on social insurance. According to a notice issued by the Shanghai Human Resource and Social Security Bureau, Shanghai arbitration committees at each level have ceased trying any labour disputes in connection with social insurance since 1 July, 2014. Additionally, the regulations further clarify the arbitration jurisdiction for foreign invested enterprises including enterprises of Hong Kong, Macao and Taiwan. As required by these regulations, the Municipal Labour Dispute Arbitration Committee has jurisdiction over the following labour disputes:

  • Labour disputes between a foreign enterprise registered in Shanghai with a registered capital of  US$ 10,000,000 or above, or of an equivalent amount or above, in accordance with the Law of the PRC on Foreign-funded Enterprises and its employee;
  • Labour disputes between enterprises or other economic organisations from Hong Kong, Macao and Taiwan registered in Shanghai with a registered capital of US$ 10,000,000 or above, or of an equivalent amount or above, with reference to Rules for the Implementation of the Law of the People's Republic of China on Foreign-funded Enterprises and their employees; and
  • Disputes between foreign nationals, residents from Hong Kong, Macao and Taiwan, Chinese nationals residing permanently abroad and their employers.

The regulations commence validation as of 1 October, 2014 and expire on 31 December, 2018.