Contact: Vivien Chan (Hong Kong, China)
This newsletter serves to provide a brief update on labour and employment law in China, to enable foreign investors to keep abreast of the evolving standards in the PRC in relation to the labour law.
THE REGULATIONS ON THE LABOUR PROTECTION OF FEMALE EMPLOYEES (“REGULATIONS”)
Enhanced benefits for female employees
The Regulations took effect on 28th April 2012. As reflected from the name, the Regulations set out provisions for labour protection of female employees, especially during pregnancy. In brief, the enhanced benefits are as follows:-
Types of leave entitlement
- Maternity Leave 98 days (previously 90 days)
- Miscarriage Leave 15 days (during the first 4 months of pregnancy)
42 days (if happens thereafter)
Apart from the abovementioned provisions on the required leave to be granted as well as other provisions regulating the maternity leave pay and the types of work which should not be assigned to female employees, this is the first time that an administrative regulation has been promulgated to specifically state that employers shall prevent and stop sexual harassment against female employees at work.
Consequences of non-compliance:
- Economic penalty (ranging from RMB1,000 to RMB300,000)
- Order for cessation of business
The Regulations require the PRC Government to recognise the contributions of female employees and keep track to international standards.
THE SPECIAL WORKING HOURS MANAGEMENT REGULATION (FOR CONSULTATION)
On 8th May 2012, the captioned draft regulation was released. The draft regulation serves to provide detailed regulations on the working hours of an employee. In particular, it sets out the types of work that an employer may adopt, regarding a system of special working hours (“System”):-
- irregular working hours for specific job positions, e.g. director, manager, etc., and
- 2. comprehensive calculation of working hours for employees engaged in specific types of industries (electricity, petroleum, petrochemical and financial industries are newly added).
It also regulates the maximum allowable working hours per day and per prescribed period (e.g. weekly, monthly or quarterly) even if the System is adopted. Although the actual regulation is yet to be implemented, it can be noted that the underlying intention is for protection of PRC employees from prolonged working hours.
It is recommended that one monitors the development of the draft regulation, especially if the arrangement of special working hours for employees is necessary due to their business needs.
© Vivien Chan & Co., September 2012 All Rights Reserved
Please note that the information and opinions contained in this newsletter are intended to provide a general overview only, and should not be treated as a substitute for proper legal advice concerning an individual situation. We disclaim all liability to any person in respect of the consequences of anything done or omitted to be done wholly or partly in reliance upon the contents of this newsletter. Readers should make their own enquiries and seek appropriate legal advice on the particular facts and circumstances at issue.
