China’s Labor Contract Law has many special regulations on collective contracts, labor dispatch and part-time employment. To learn about these special handling methods will give you a deep understanding of the Labor Contract Law.
- Collective Contracts
Through equal negotiation, the employee, as one party and the employer as another can conclude a collective contract on matters such as labor remuneration, working hours, and welfare benefits.
The trade union will signs a collective contract with the employer on behalf of the employees.
In addition to general collective contracts, there are special collective contracts for occupational safety and health, protection of female employees’ rights and interests, wage adjustment mechanisms, etc., as well as regional or industrial collective contracts related to construction, mining and catering industries.
The rates for labor remuneration and the standards for working conditions, etc. specified in a collective contract shall not be lower than the minimum rates and standards stipulated by the local People’s government. The rates for labor remuneration and standards for working conditions, etc. specified in the labor contract between an employing unit and a worker shall not be lower than those stipulated in the collective contract.
The labor remuneration standards and labor conditions standards stipulated in the collective contract shall not be lower than the minimum standards set by the local government. The rates for labor remuneration and standards for working conditions specified in the labor contract between an employing unit and a worker shall not be lower than the provisions of the collective contract.
- Labor Dispatch
The labor dispatch unit shall be established in accordance with the relevant provisions of the Company Law, and the registered capital shall not be less than RMB 500,000.
Employing unit may not establish labor dispatch units to dispatch workers to their own units or subordinate units.
The term of the dispatch labor contract shall not be less than 2 years, and the labor remuneration shall be paid by the labor dispatch unit on a monthly basis.
The labor dispatch unit shall not detain the labor remuneration paid to the labor service receiving unit where the dispatch employees work for.
The receiving unit shall perform the obligations of providing necessary working conditions and occupational protection, overtime pay and performance bonus, and necessary training. It is not allowed to re-dispatch employees to other employers.
The Labor Contract Law also requires that an enterprise apply the principle of equal pay for equal work to dispatched employees.
- Part-Time Employment
Part-time job means that the remuneration of workers is mainly calculated by the hour, and the workers work no more than 4 hours per day in the same employer on average, and the cumulative total of no more than 24 hours per week.
The worker and the employer can sign an oral part-time employment agreement. Workers can conclude labor contracts with multiple employers, but the labor contract signed later shall not affect the performance of the labor contract signed earlier.
Either party can notify the other party to terminate the labor contract at any time, while the employer will not pay economic compensation.
The hourly wage standard for part-time jobs shall not be lower than the minimum hourly wage standard set by the local government, and the settlement and payment period for part-time labor shall not exceed 15 days.
The details of these special treatments are more complicated, and if foreign companies do not pay attention to them in China, they can easily violate the Chinese labor contract law. China Payroll provides foreign enterprises a comprehensive guide to explain the details and help you thoroughly understand the special handling.
