The State Council released the Regulation on Personnel Management of Public Institutions (the “Regulation”) on April 25, 2014. The Regulation will come into force on July 1, 2014. Its main content includes:

  1. The term of the contract that public institution enters into with its personnel is generally no less than three years. If a personnel is hired for the first time by the public institution and his/her contract is more than three years, he/she will be subject to a 12-month probation period.
  2. If the personnel has continuously worked for the public institution for ten years and he/she will retire within ten years, the public institution is obligated to enter into a contract whose term lasts till the personnel retires upon the personnel’s such request.
  3. The public institution is entitled to unilaterally terminate the contract with its personnel under the following circumstances: (1) immediate termination in the event that the personnel is absent from work for a continuous 15 working days or the personnel is absent from work for an accumulative 30 working days in one year; (2) termination after 30-day prior written notice in the event that the personnel is evaluated as unqualified and refuse to position adjustment or he/she is evaluated as unqualified for two sequential years; (3) the personnel received a disciplinary action of expel.

KWM Comments: The Regulation is the key rules on personnel management of public institutions. The provisions regarding contract and termination are worth attention from both public institutions and their personnel.