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China labor law: part 2

Time:2014-03-13 Hit:172


China labour law: part 2


Insurance funds, according to the China employment law:

   In accordance with article 73 of China employment law, the employee shall enjoy social insurance benefits in any of the following circumstances:

1. Upon retirement

2. When suffering from an illness or sustaining an injury

3. When disabled by a work-related injury or suffering an occupational disease

4. Upon unemployment

5. When giving birth


   According to the regulations on the collection and administration of social insurance contribution, which is promulgated on January 22, 1999 by the State Council,  the Labour Management Regulations, and the Letter of Response Concerning Implementing the Regulations for Labor-Management in Foreign Investment Enterprises which is promulgated on July 14, 1995 by the General Office of the Ministry of Labor. The foreign investment enterprises and their employees must participate in the social insurance system for the basic old-age pension, medical treatment, work-related injury, maternity care, and unemployment in accordance with the state laws and regulations, which are compulsory and under no circumvents may be reduced or exempted.


Basic old-age insurance:

   Under the Regulation of Management of Old Age Insurance Funds for Employees, which is promulgated on July, 1993 by the Ministry of Labor, and the Decision for the Establishment of a Unified Basic Old-Age Insurance System for Enterprise Employees, which is promulgated on July 1997, by the State Council, both the employer and the employee are required to make contribution to the Old Age Insurance Fund. The specific amount of the contribution to such an insurance fund is calculated according to the total wages of the employee.


Medical treatment insurance:

   Under China Labour Law and the Opinion on Expanding the Trail Sites for Reform of the Medical Insurance System, Issued on May 5, 1996, by the General Office of the Ministry of Labor, the enterprise is obliged to make medical insurance contribution for their employees. The amount of contribution is calculated by multiplying the total wages of the enterprise with the contribution percentage. The contribution percentage may be wary from locality to locality, but it should not exceed 10% of the total wage of the enterprise. Employees are also required to contribute 1% of their wages for medical insurance.


Work-related injuries insurance:

   According to the Regulations on Work-related Injury Insurance, promulgated on April 27, 2003, by the State Council and effective from January 1, 2004, the Work-related Injury Insurance covers the following situations:

1. During the performance of work duties in the working place during work time;

2. While engaging in work-related preparation or closing work in the working place before or after the working time

3. Sustained violence or other accidents while performing work duties in the working place during working time

4. Contracted occupational diseases

5. Injuries or disappearance occurring while on business trips

6. Injuries sustained from traffic accidents on the way to work or returning home

7. Death resulting from sudden illness or occurring within 48 hours after an emergency rescue at the working site during working time

8. During emergency situations or disasters while protecting the interests of the state or the community

9. Recurring injuries preciously sustained during military service or war, for which injuries or disability certificate had been issued


Maternity insurance:

   1% of the payroll to a maternity insurance fund shall be contributed by the enterprise for maternity insurance, and the employee is not required to make such a contribution. If the enterprise fails or refuses to pay employees' maternity benefits or medical expenses, it will be ordered to pay the expenses and be liable for compensation if the employee has suffered as a result of the non-payment.


Working time:  

Article 36 of China Labor Law stipulates that the working hours for each worker shall not exceed 8 hours a day and. The average weekly working hours shall not exceed 44 hours.

In general, a daily working time of eight hours is the norm in government agencies, social organizations, enterprises, institutions, and other organizations. In the event of an emergency or particular circumstance, daily working hours can be extended in consultation with the employees and trade unions; however, the daily extension of working hours can be extended more than one hour per day. Where it is necessary to extend working hours for special reasons, daily working hours may be extended by no more than three hours daily, up to 36 hours per month, provided that the health of the employee is ensured.

   The maximum daily and weekly working hours shall be applied as a principle to employees who are engaged in piecework. The determination of their working hours may be flexible but must not exceed the total weekly working hours limit.

   Weekly working hours have generally been reduced from an upper limit of 44 hours weekly, as stipulated in the China Labor Law, to 40 hours according to the Regulation of the State Council governing Working Hours for Workers, effective from May 1, 1995 as an amendment to the 1994 Regulations, which stipulated that the latest date for its implementation by institution is July 1, 1996, and the latest date for implementation by enterprise is May 1, 1997.

Two days of weekly rest is the practice in the enterprises and employing units that have implemented five days of weekly working time. The enterprises and employing units, which are unable to practice five working days per week, will adopt two days of weekly rest every other week. Except for the government and institutions which are obliged to take Saturday and Sunday as weekly rest days, alternative days taken as weekly rest days may be decided by other working units.



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