Laws of the People's Republic of China

DECISIONS ON PERSONNEL MANAGEMENT OF FOREIGN
INVESTMENT ENTERPRISES

  (Issued on October 12, 1988 by the Ministry
of Labour and Personnel; Approved on December 15,
1988 by the State Council)

 

SUBJECT: ENTERPRISES WITH FOREIGN INVESTMENT; LABOUR

ISSUING-DEPT: MINISTRY OF PERSONAL

ISSUE-DATE: 10/12/1988

IMPLEMENT-DATE: 12/15/1988

LENGTH: 855 words

TEXT:

[Article 1] These Decisions are issued by the Ministry of Labour and Personnel to place special emphasis on the autonomy of personnel management of foreign investment enterprises in hiring and firing of the Chinese employees.

[Article 2] Foreign investment enterprises are allowed to employ workers, technicians and managerial personnel (including senior managerial personnel) through public recruitment.ŸŸ Foreign investment enterprises may select the suitable persons from the workers, technicians and managerial personnel recommended by the Chinese partners.ŸŸ In case foreign investment enterprises cannot find suitable persons in the area where they are located, they may look for the suitable persons outside the regions.

[Article 3] The departments in charge and the Chinese enterprises shall actively support the transfer of their staff who have been recruited by foreign investment enterprises.ŸŸ It is strictly prohibited to use such means as unreasonable charges and withdrawal of living stipend of employee so as to block the transfer.ŸŸ If the department in charge and the Chinese enterprise interfere with the transfer without good reason, the Chinese employee may resign from his or her position and employment with his or her former employer.ŸŸ In case of any dispute arising, the parties involved may apply for arbitration at the labour and personnel arbitration committee where foreign investment enterprise is located or for arbitration at the personnel exchange service center formed by the local government.ŸŸ All parties must abide by the arbitral award of the labour and personnel committee or the personnel exchange service center.ŸŸ In case of special circumstances, the local labour and personnel department may take direct action over the matter and make the necessary arrangements for the transfer.

[Article 4] When foreign investment enterprises recruit employees from another provinces, autonomous regions or municipalities directly subordinated to the central government, such recruitment may not be submitted to local labour and personnel departments for approval.ŸŸ The relevant local labour and personnel departments shall handle affairs relating to organization, coordination and services.

[Article 5] When the Chinese enterprise start to form an equity or contractual joint venture with foreign investors, the workers of the Chinese enterprise may be employed on a selective basis. ŸŸThe Chinese partner and its superior department in charge shall make proper arrangements for unemployed workers.ŸŸ The local government shall also coordinate with the various departments in charge and the Chinese enterprise concerned to make substantial assistance.

[Article 6] No government agency, local enterprise or individual may interfere with the decision of foreign investment enterprise to fire the Chinese employee, if such decision is made according to the terms of the employment contract and relevant regulations.ŸŸ The dismissed employee shall return to his original enterprise if he or she was employed by foreign investment enterprise on a temporary or employment basis.ŸŸ If the dismissed employee is recruited by another foreign investment enterprise through public recruitment, he or she shall contact the local labour service company or personnel exchange service center with which he or she is registered for employment.ŸŸ The dismissed employee may get a job from the relevant government department, run his own business together with other persons or look for a job on his own.

[Article 7] Those Chinese who serves as Chairman of the board of directors or Director of Sino-foreign equity or contractual joint venture shall not make a transfer of work without consent of the board of directors, during the term of employment.ŸŸ Wherer such transfer is necessary, the party who appoints the Chairman or Director shall seek consent from the examination and approval authority and foreign partner of foreign investment enterprise.ŸŸ Before the expiration of the term of employment, no department or unit may transfer the Chinese senior managerial personnel hired by foreign investment enterprise to another post, without the consensus of its board of directors and the concurrence of general manager.

[Article 8] In case of any divergency between these Decisions and other provisions or regulations issued by the State Council and the Ministry of Labour and Personnel, these Decisions shall prevail.

[Article 9] Local governments and relevant departments shall make a great efforts in educating the leaders at all levels, workers and staff members so that they can realize that the importance of granting foreign investment enterprises a high degree of autonomy of personnel management according to internationally accepted practice.ŸŸ Those who acted in violation of these Decisions, the relevant laws and regualtions, or conducted irregular practice in hiring or firing of the Chinese staff and workers should be criticized.ŸŸ Those who commit serious offense should bear the legal and administrative liability based [MISSING PAGE]