Contract of Labor

Foreign-funded enterprises must follow the Labor Law of the People's Republic of China and Regulations on the Implementation of Labor Contract System of Tianjin under The regulations Governing Labor Management in Enterprises with Foreign Investment. The Legal representative must sign labor contracts with employees for a certain period of time from the date of employment.

Recruitment, Dismissal and Resignation of Employees

Recruitment:

Foreign-funded enterprises can determine their institutional and personnel systems and are free to decide the time, scale, conditions and pattern of their employment activities but child labor is prohibited. Women workers should not be assigned to do work internationally prohibited as unsuitable for women. If foreign-funded enterprises want to employ people from places outside of Tianjin, they must respectively make application to local governments or the municipal bureaus as the case may be in accordance with their line of subordination, or the administrative department of the municipality will collect the applications and approach the Municipal Bureau of Labor. Foreigners or people from Taiwan, Hongkong and Macao, who want to work in Tianjin must apply to the Municipal Bureau of Labor for the Employment Permits.

Dismissal

After the termination of labor relationship between an enterprise with foreign investment and its employee, personal files of the employee concerned must be transferred within 15 days. Termination of labor relationship with an employee due to causes on the part of the enterprise must be notified to the employee concerned 30 days in advance in written form and economic compensations must be paid accordingly.

Labor Protection

Work time, holidays and leave:

The work time should nor exceed eight hours per day.

The average work time per week should not exceed 40 hours. Foreign-funded enterprises are required to arrange holidays leaves for employees at New Year. Spring Festival, on International Labor Day and National Day as well as on other legal holidays.

Labor safety and Hygiene:

Foreign-funded enterprises must strictly observe the regulation and standards of labor safety and hygiene in China. The production equipment and installations must be supplemented with safety and hygiene facilities. For new projects, expansion projects and renovation projects, the safety and hygiene facilities must be designed, constructed, and put to use simultaneously with principal parts of the projects.

Employment of Foreigners in China

Refers to the activities of those who have not obtained the right of residence but are engaged in social labor activities in China and get payment for their services. According to the Regulations on Employment of Foreigners in China, a permit system is in force to administer the employment of foreigners who come to work in China.

The employers are required to apply for Employment permit for foreigners they want to employ and employment could only be after the Employment Permits of the People's Republic of China are arranged. The labor administration department of the Municipal Government is responsible for the management of foreigners' employment in China. If the salary, or other legal incomes of the foreign employees are in foreign currencies, the money may be either remitted or taken out of China after paying taxes. If the incomes is in RMB, the money, after paying the tax, could either be used to purchase foreign currencies at designed banks with an effective certificate issued by the foreign currency control department and then be remitted or taken out of China. Employment of people from Hongkong, Macao and Taiwan in the interior shall be handled in accordance with the notice concerning the Regulations Governing Employment of Hongkong, Macao and Taiwan Residents.

Guide for the Employment of Foreigner in China

Foreigners who have not been granted residence certificate and those who are under study programs in China shall not work in China without the permission by the competent authorities. Holders of F(visitor), L(tourist), G(transit), J-2(temporary correspondent), C(attendants) type visas shall not work or seek employment in China without the consent of the labor and personnel administration departments.

When employed, the foreigner concerned shall carry out the employment contract or arrangement and shall not accept employment by other units. Upon termination of the agreement, the employee may only seek jobs after further applications are approved. Otherwise, such acts shall be deemed as illegal.

A foreigner should go through alteration formalities at the public security organs when he or she changes employer after termination of a labor contract, bringing with him or her certificate of new employment and termination of the former one. For foreigners who seek employment without approval, the administrative department of the public security organs in charge of the entry and exit of aliens is authorized to impose a fine of under RMB 1000 or, in serious case, order the foreigner to leave China within a time limit.

Labor Insurance, Welfare and Salary System

• Salary standard for foreign employees:

Salaries for foreign employees shall be negotiated between the enterprise with foreign investment and the employees and paid according to labor contract signed by both the enterprises and the employees. Salaries for the employees from Hongkong, Macao and Taiwan shall be settled in light of the regulations for foreign employees.

• Salary standard for Chinese employees:

The salary standard for Chinese employees is be decided by the enterprise itself, but should not be lower than the minimum wage stipulated by the municipal authorities. Medical expenses, various welfare benefits and retirement insurance for Chinese Employees should be funded out of the cost of the enterprise with the total salaries and wages of Chinese employees as the base.

• Standards For Funding medical Expenses and Various Welfare Benefits for Chinese Employees

　　Note:

• Turn-over by enterprise on behalf of employees to consolidated fund for major medical care for cardinal decease are based on the average monthly wage of all employees in the Municipality in the previous year. Other turn-overs are based on the average monthly wage of the insured in the enterprise in previous year.
• All fees in the above table are to be paid by the enterprise.
• Fees to be paid by the employees themselves(unemployment insurance-2 yuan, major medical care for cardinal deseas-1%, pension insurance-5% are to be deducted by the enterprise from the wages of employees.

　　Standards for Price Subsidies

According to the rules of the Ministry of Finance, foreign-funded enterprise should hand in the various price subsidies(RMB30 yuan per month for each Chinese employee in the enterprise) prescribed by the standards verified by local financial and labor department of the provinces, autonomous regions and municipalities directly under the central government.

　　Exemptions

Starting from the date of approval, the State-approved export-oriented and technologically advanced foreign-funded enterprises are exempt from this 30 yuan price subsidy prescribed by the state for Chinese employees.