The Latest China Employment Compliance–Big Things For Foreign Employers

Many foreign companies in china are misunderstanding the situation where the slightly economic growth will lead the government to favor foreign employers. However the truth is that foreign employers do not protest while the Chinese employees do. Moreover the Chinese government values stability above nearly all else thus our China lawyers are seeing this play out in the following ways to improve the situation for its workers

China lawyers are seeing this play out in the following ways:

• The Chinese government (especially the tax authorities) is relentlessly pursuing foreign companies with China employees but no business registered in China. This started picking up in early 2015 and it went into overdrive just a few months ago. One of the reasons for this crackdown the desire to force foreign companies to retain employees 100% within the law, so that these employees will have fast and easy legal recourse against their employers for labor and employment law violations.

• China's government, courts and administrative bodies are getting tougher on foreign companies that do not comply with China's labor and employment laws. Like pretty much everything else related China's employment laws, the extent to which this is happening varies by location. 

• China employers that violate China's labor protection laws will be named "and shamed." Employers are also getting graded on their compliance with China's labor and employment laws. 

Beginning earlier this year, China enacted Measures for Announcing Major Violations of Labor Security and the Measures for Credit Rating Evaluation of Enterprise Labor Security Compliance. These measures evidence the government's seriousness regarding employment law compliance and they give the government new powers to ensure compliance. According to the Supreme People's Court, new labor disputes accepted by the Chinese court system totaled 483,311 in 2015, up a whopping 25 percent from the previous year. These numbers have been rising in a straight line upward ever since. China employees are getting smarter and more proactive about enforcing their legal rights against their employers, especially as against foreign employers.

The new measures include publicizing "serious" employer violations in newspapers and magazines and on TV. These public announcements will include the employer's name, address, and registration code, along with the full name of the legal representative or key person in charge and the exact violation and fines or other sanctions imposed. Just imagine what this will do for your company's reputation and your ability to hire new employees. Will individuals who have been named and shamed want to leave China? Will they have to do so?

In addition to naming and shaming, employers will receive A, B or C grades based on their compliance in various areas, including the following:

• rules and regulations

• employment contracts

• misuse of third party hiring agencies (a/k/a labor dispatch services)

• child labor laws

• overtime and vacation compliance

Since China Labor Law is complicated, properly recruiting the employees in China is crucial for the foreign employers. The third party hiring agencies like Talent Spot can be helpful. We can facilitate your HR solutions including temporary/permanent staffing, executive search, RPO, on-site managed recruitment, payroll services and so on, click Talent Spot to check out.