The Hubei Provincial Regulations on Collective Contract (Revised in 2013) (the “Regulations”), which will take effect on 1 February 2014, makes new measures on violation of collective consultation stipulations by enterprises.

Enterprise’s misconducts will be recorded in the credibility archives and publicize the record under the following circumstances, if the enterprise fails to rectify it within a period specified by the human resources and social security administrative authorities at the county level or above:

  1. Refusing or procrastinating collective consultation request from the other party;
  2. Obstructing the guidance or assistance from a superior trade union on conducting collective consultation and executing collective contracts for subordinate trade unions and employees;
  3. Failing to perform the collective contract.

KWM Comments: In Hubei, enterprise that violates the stipulations on collective consultation may be recorded in the credibility archive and announced to the public. Although no direct economic penalty, such new measures will impose an adverse affect on the credibility of enterprises concerned.