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China Trade Union Law and Regulation and Foreign Owned Companies

China trade union regulations is always a mysterious area of law in China employment law legal system. Some of my clients always consult me on this topic. However, even myself will sometimes be confused on the trade union laws and regulations, as well as the reality of the trade union law practice. The following text will feed those who are interested in this area.

Basic Introduction to China Trade Union

Cheap labor. Minimal regulations. Bribable officials. Foreign corporations attracted to China because of its low cost of business have avoided the unionization desired by the Chinese Communist Party (“CCP”) despite China’s history of weak trade union laws and inconsistent enforcement of union mandates. However, recent concerns of social unrest have forced the CCP to consider reforming the political tools used to control Chinese society. The CCP wants to create social stability, avoid independent unionization, and prevent the westernization of China. Foreign Investment Enterprises (“FIEs”) present new challenges for labor market regulation in China with their large number of non-unionized workers revolting at poor working conditions, as well as FIEs' importation of western values. The Trade Union Law amendment of 2001 affords the All-China Federation of Trade Unions (“ACFTU”) more avenues of enforcement through which to force FIEs to unionize and obliges the ACFTU to become a greater presence in private enterprises—especially FIEs.

 

China Law Blog Tips: Wrongful Termination: Was Your Firing Illegal?

If you've been fired from your job, do you have grounds to challenge the termination?

 

Your Rights in the Workplace

If you've been fired from your job, how do you know if the termination was legal or illegal (called "wrongful termination")? Most employment is "at will," which means an employee may be fired at any time and for any reason or for no reason at all (as long as the reason is not illegal). But there are some important exceptions to the at-will rule -- and legal remedies -- that may help you keep your job or sue your former employer for wrongful termination.

 

Free sample EMPLOYEE NON DISCLOSURE Agreement drawn up by China employment lawyer

The sole purpose of the Employee Nondisclosure Agreement is to make clear to an employee that he or she may not disclose your trade secrets without permission. Lawyers recommend that employers use such agreements prior to an employee starting work. If the agreement is with a current employee, we recommend that you give the employee something of value over and above normal salary and benefits.

 

How to terminate an employment contract in China legally and avoid legal problems

I write this article not to encourage a China employer to fire employees, neither to infringe the legal rights of employees. I believe a legal termination will benefit both employer and employees. Therefore, please read this article with a object perspect.

The decision to terminate an individual’s employment carries with it the risk of a possible legal challenge. Depending upon an employer’s policies or whether an employee has an employment contract, an employee may, for example, have a breach of contract or “wrongful discharge” claim.

 

The termination of employment contract and severence pay in China employment law

The employment system in the People's Republic of China is quite different from that of the United States. Whereas the United States uses an employment-at-will system, where an employer may terminate a contract at anytime, China uses a contract employment system, which is heavily based on a North European legal framework. In a contract employment system, it is very difficult to terminate an employee that is still under contract. The latest labor law comes into effect in 2008 and governs regulations regarding contracts and severance.

 
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I am a licensed China lawyer. Most clients are foreign nationals and companies. China Lawyer Blog have associates in Beijing, Shanghai, Tianjin, Guangzhou, Suzhou, Nanjing, Qingdao, Fuzhou, Hainan, Hefei, Wuhan, Xian, Changsha, Xiamen and Hangzhou. Learn More

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China Lawyer BLog AuthorPeter Zhu, an experienced China attorney licensed to practice law for more than ten years, the author of this China Lawyer blog, welcomes any enquiry or consultation related to Chinese law.