CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL ON THEAPPROVAL AND TRANSMISSION OF THE PROPOSALS SUBMITTED BY THE MINISTRY OFLABOURAND THE MINISTRY OF PERSONNEL CONCERNING FURTHER IMPLEMENTATION OFTHE POLICY OF GRANTING DECI
CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL ON THEAPPROVAL AND TRANSMISSION OF THE PROPOSALS SUBMITTED BY THE MINISTRY OFLABOURAND THE MINISTRY OF PERSONNEL CONCERNING FURTHER IMPLEMENTATION OFTHE POLICY OF GRANTING DECI
SION-MAKING POWER TO ENTERPRISES WITH FOREIGNINVESTMENT F
Important Notice:
This English document is coming from the "LAWS AND REGULATIONS OF THE
PEOPLE'S REPUBLIC OF CHINA GOVERNING FOREIGN-RELATED MATTERS" (1991.7)
which is compiled by the Brueau of Legislative Affairs of the State
Council of the People's Republic of China, and is published by the China
Legal System Publishing House.
In case of discrepancy, the original version in Chinese shall prevail.
Whole Document
CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL ON THE
APPROVAL AND TRANSMISSION OF THE PROPOSALS SUBMITTED BY THE MINISTRY OF
LABOUR AND THE MINISTRY OF PERSONNEL CONCERNING FURTHER IMPLEMENTATION OF
THE POLICY OF GRANTING DECISION-MAKING POWER TO ENTERPRISES WITH FOREIGN
INVESTMENT FOR THE EMPLOYMENT OF WORKING PERSONNEL
(May 5, 1988)
The report entitled "Proposals Concerning Further Implementation of the
Policy of Granting Decision-Making Power to Enterprises with Foreign
Investment for the Employment of Working Personnel" submitted by the
Ministry of Labour and the Ministry of Personnel has been approved by the
State Council. The Report is hereby transmitted to you for earnest
implementation.
PROPOSALS OF THE MINISTRY OF LABOUR AND THE MINISTRY OF PERSONNEL
CONCERNING FURTHER IMPLEMENTATION OF THE POLICY OF GRANTING DECISION-
MAKING POWER TO ENTERPRISES WITH FOREIGN INVESTMENT FOR THE EMPLOYMENT OF
WORKING PERSONNEL
(Excerpts)
In order to improve the investment environment to facilitate the
implementation of the strategy for the economic development in the coastal
areas, the following proposals are hereby made on further implementation
of the policy of granting decision-making power to enterprises with
foreign investment for the employment of working personnel:
(1) Workers, technical personnel and administrative personnel (including
senior administrative personnel) needed by enterprises with foreign
investment may be employed by the enterprises openly from society; the
enterprises may also select and employ their working personnel from among
the personnel recommended by the Chinese joint venturers, their business
partners. If the personnel employed from the local area cannot satisfy the
needs of the enterprises, working personnel may be employed trans-
regionally.
(2) In case that enterprises with foreign investment wish to employ
working personnel from among workers and staff members on job, the
departments and units concerned should give their active support and
permit their working personnel to leave. The aforesaid departments and
units should not impose any restrictions by charging payments or by taking
back rooms or houses. In case that the original unit attempts to obstruct
without any justification, workers or staff members who are employed by
the aforesaid enterprises may resign. After resignation, their years of
service shall still be counted without interruption. If any disputes
arise, the person concerned may apply to the labour dispute arbitration
committee in the local area, or to the service center for the exchange of
personnel authorized by the local government for arbitration. All parties
concerned must execute the arbitral award. If necessary, the transfer
formalities may be performed on behalf of the engaged workers and staff
members directly by the local labour or personnel departments.
(3) In case that enterprises with foreign investment go beyond the
province, autonomous region, or municipality directly under the Central
Government to employ workers and staff members, it is no longer necessary
for them to submit their applications to the provincial department of
labour or personnel for approval; the labour or personnel departments of
the areas concerned should strive to do their organizational, coordinative
and service work well.
(4) When a Chinese enterprise establishes a joint venture with foreign
businessmen, the joint venture may select and employ the workers and staff
members of the original Chinese enterprise according to needs. The Chinese
side of the joint venture and the competent authorities over the joint
venture shall make proper arrangements for the placement of those workers
and staff members who are not employed; and the local government shall
take an active part in assisting the department concerned to do the
personnel regulation work.
(5) In the case that an enterprise with foreign investment dismisses
workers and staff members in accordance with the contract and relevant
provisions, no departments, units or individuals shall interfere. Of the
dismissed workers and staff members, those who were on loan or temporarily
employed shall be reaccepted by their original unit of work and those who
were directly hired by the joint venture shall register for a new job with
the local labour service company or the service center for the exchange of
personnel at their original place or be offered a new post through the
introduction of a department concerned, or organize themselves for self-
employment, or look for a job themselves.
(6) The Chinese personnel, who hold the position of chairman of the board
of directors or directors in a Chinese-foreign equity joint venture or in
a Chinese-foreign contractual joint venture, shall not be transferred
during their terms of office without authorization. If the transfer is
necessary, the appointing unit shall solicit the opinions of the examining
and approving organ of the said enterprise and of the foreign side of the
joint venture. No departments and units have the right to transfer senior
Chinese administrative personnel employed by an enterprise with foreign
investment, during their terms of office as stipulated in the contract, to
other positions without the consent of the said enterprise's board of
directors and of the general manager.
(7) If there is any conflict between these Proposals and the pertinent
regulations and provisions promulgated by the State Council and the former
Ministry of Labour and
Personnel, these Proposals shall prevail.
(8) Various areas and departments concerned should strengthen publicity
and education among the leading cadres at various levels and the broad
masses of workers and staff members for their better understanding of the
matter and ensure that enterprises with foreign investment can exercise
their decision-making power in selecting and employing working personnel
in accordance with the practice prevalent in the world. Those who violate
the pertinent laws and regulations and these Proposals, and use dishonest
methods or devious means in handling cases concerning the employment or
dismissal of workers and staff members, shall be criticized and
admonished. If the cases are serious, investigations shall be conducted
into the legal responsibilities of the persons concerned or disciplinary
sanctions shall be given to them, in accordance with the actual
circumstances.
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