The PRC Regulations Concerning the Handling of Labour Disputes in Enterprises and the Provisional Regulations on Handling of Personnel Disputes establish the procedures for handling labour disputes. Under the dispute regulations, parties are encouraged to settle labour disputes by negotiation or mediation. If neither of these works, the parties must resort to compulsory arbitration before they may initiate legal proceedings.

What are the requirements for foreign employees to work in China?

Foreign nationals may work in the PRC only after obtaining Employment Permits and Residence Certificates except where they:

are a professional technician or management personnel employed directly by the Chinese Government;
hold a Foreign Expert Certificate issued by the Foreign Expert Bureau and are employed by state authorities or public institutions;
have specialized skills working in offshore petroleum operations without the need to go ashore and hold a Work Permit for Foreign Personnel Engaged in Offshore Petroleum Operations in the PRC; or
engage in commercial activities with the approval of the Ministry of Culture and hold a permit to conduct temporary commercial activities.
What are employment units as referred in China?

Employment units are organizations such as enterprises, individual economic organizations, private non-enterprise entities, State organs, public service units and social associations in China

What documents shall the employment units provide when recruiting new employees through public employment service institutions, employment agencies or recruitment meetings?

When entrusting public employment service institutions and employment agencies with recruiting people or attending recruitment meetings, employment units shall provide a recruitment introduction and show their business licenses and relevant documents. The recruitment introduction shall contain basic information of the employer, the contents of the job, requirements, payment, welfare treatment, social insurance, etc. Also, employment units shall disclose true information about the contents of the job, work conditions, work place, dangers of the job, production safety, payment and other information that applicants require. 

What are the prohibitions prescribed for employment units to recruit new employees in the Provisions?

When recruiting people, employment units shall not use gender as an excuse to reject women or raise standards for women, except in jobs and positions that are not suitable for women as provided in the State regulations. No restrictions on female employees related to marriage and maternity issues shall be imposed in employment contracts. Employers shall not reject carriers of pathogens of infectious diseases, except for the jobs that are prohibited to be conducted by hepatitis B virus carries as stated in the laws and regulations. The report of the applicant’s hepatitis B virus status shall not be taken as a compulsory standard for recruitment. Migrant workers from villages shall enjoy equal employment rights as urban laborers. No discriminatory restrictions shall be imposed on rural migrant workers.

What punishment will the employment units receive if they go against the prohibitions?

A compulsory rectification order and penalty of RMB1,000 or lower may be imposed by the Ministry of Labor and Social Security on employment units that have violated the regulations. The employment unit shall undertake liability for compensation if any personal injury is caused. 

What service shall public employment service institutions provide?

Public employment service institutions shall provide free services on employment policies and regulations, information on job market supply and demand, salary index and career training information, career guidance and introduction and employment assistance.

What rules should these service institutions conform to when providing employment services?

Public employment service institutions shall not engage in profit making activities. No charge may be collected from laborers for recruitment meetings. Agency charges shall be returned if the employment agency cannot help a laborer in their application.

Who will receive employment assistance according to the Provisions?

The targets of the employment assistance mentioned in the Provisions include people with employment difficulties and unemployed families. People with employment difficulties mean those who encounter difficulties in employment due to their physical disability, technical skill, family reasons, loss of land and those unemployed for a certain period of time. Unemployed families refer to citizens’ families where all members of working age are unemployed.