The Guangdong Provincial Regulations on Unemployment Insurance (Revised in 2013) (the “Regulations”) will take effect as of 1 July 2014. Key contents of the revised Regulations include:

  1. Circumstances of “Termination Not Due to Employee’s Will” Specified: Except for employer’s unilateral termination and other circumstances, the Regulations provides that if employer initiates a motion regarding negotiation on terminating employment contract and eventually reach mutual consents on termination, it will be deemed termination not due to employee’s will.
  2. Employer’s Obligation to Specify Termination Ground:  If employer terminates an employment contract, it should issue a separation certificate  to the employee and specify the termination ground in the separation certificate. 
  3. One-time Extra Unemployment Insurance Benefits: Female unemployed who gives birth during the period of receiving unemployment insurance money is entitled to apply for one-time extra unemployment insurance benefits with the social insurance agency at the registered locality of her unemployment insurance account. The amount of such money will be three times the unemployment insurance benefits she receives in the month of her delivery. 
  4. Job-seeking Allowance: The unemployed is entitled to the job-seeking allowance within the period of receiving unemployment insurance benefits with an amount equivalent to 15% of the average monthly contribution base of the 12 months immediately before the unemployment. Job-seeking allowance is granted every month together with unemployment insurance benefits and the period of grant may not exceed 6 months.

KWM Comments: According to the Regulations, if employer initiates the negotiation on termination and terminate their employment relationship by mutual agreement, the employer may want to consider using the language that “the negotiation on termination of employment relationship is initiated by the employer” or alike words, so that the employee can apply for the unemployment insurance treatment.