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Baker McKenzie | China | 28 Jan 2015

Employers face new obligations regarding occupational hazard warnings

The State Administration of Work Safety recently issued the Regulations on the Administration of Occupational Hazard Notifications and Warning Signs, which increase employer obligations to notify employees of occupational hazards and set up warning signs in workplaces.
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Baker McKenzie | China, Hong Kong | 22 Oct 2014

General manager successfully challenges termination despite removal by board

The Shanghai Hongkou Arbitration Committee recently ruled that a company had illegally terminated its general manager and ordered the company to reinstate him, even though the board of directors had removed him from his post in accordance with the Company Law. According to the company, the grounds for termination were dereliction of duty and serious violation of company rules.
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Baker McKenzie | China | 23 Jul 2014

Beijing High People's Court issues new guiding opinion on employment disputes

The Beijing High People's Court and the Beijing Municipal Employment Dispute Arbitration Committee have jointly issued the Meeting Minutes (II) on the Application of Law in Employment Disputes. The meeting minutes clarify some controversial employment issues often faced by employers, such as open-term employment contracts and double wage penalties.
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Baker McKenzie | China | 16 Jul 2014

ACFTU and government respond to recent wave of strikes

The All-China Federation of Trade Unions has announced its collective bargaining working plan for 2014 to 2018, which calls on all lower-level union organisations to conduct collective bargaining in more companies and improve the quality of collective bargaining. The plan recommends that labour unions involve as many employees as possible in the collective bargaining process to increase......
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Baker McKenzie | China | 7 May 2014

Termination unlawful because employer applied company policy in bad faith

A court recently upheld an employee's claim for Rmb85,000 against his former employer for unlawful termination, because the employer had relied on a valid company policy in bad faith. The dispute arose from the company's policy requiring employees to seek advance approval to take leave and centred on the timeliness of the company's notification of its decision on a leave request.
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Baker McKenzie | China | 26 Mar 2014

New labour dispatch rules bring both clarity and uncertainty

The Ministry of Human Resources and Social Security has issued the Provisional Regulations on Labour Dispatch, which recently took effect. The regulations clarify important issues on the use of dispatched workers, but also leave other issues of concern unclarified. The term 'dispatched worker' is similar to the terms 'temp worker', 'agency worker' and 'contingency worker' as used in other......
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Baker McKenzie | China | 15 Jan 2014

Employee wins overtime pay claim for meal time during overtime hours

A court recently upheld an employee's overtime pay claim for meal time during overtime hours. The case shows that companies cannot automatically assume that meal time will never be considered working hours, and that the courts will sometimes look into whether the employee was really resting during the entire meal time when deciding working hour and overtime pay cases.
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Baker McKenzie | China | 23 Oct 2013

Court dismisses evidence obtained from employee's work email

A Chinese court recently ruled in a termination case that evidence taken from an employee's work email was inadmissible. Not all courts would necessarily support such an employee-friendly decision, but if this position does become more widespread, it will create significant additional hurdles for employer investigations of potential misconduct.
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Baker McKenzie | China | 21 Aug 2013

Poor ranking alone cannot justify termination

In a recent Chongqing case, an employee's termination based on poor performance ranking was ruled unlawful, even though poor performance ranking was stated as grounds for termination in the employment contract and company rules. Although forced ranking systems like the one in this case are common in some US companies, many Chinese courts take the view that poor ranking alone cannot justify......
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Baker McKenzie | China | 22 May 2013

Income tax treatment of cross-border secondment

The secondment of expatriate employees to China has been a headache for multinational companies since 2009, when the tax authorities started to treat secondment as creating a permanent establishment of the overseas employer. However, new rules recently issued under domestic tax law with respect to cross-border secondment will hopefully ease the pain associated with expatriate secondments.
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