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China Labor Law
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China Labor Law
Discuss employment-law issues such as family leave, overtime, disabilities law, harassment, immigration and termination.
We are a US employer that conducts business in China, specifically manufacturing. We recently let a QC Inspector go who is Chinese. He tells us that China law requires employers to compensate terminat
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Forums » Topic Forums » Legal Forum » China Labor Law
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China Labor Law
posted at 7/12/2007 3:21 AM EDT
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Posts: 127
First: 5/10/2000 Last: 5/13/2010 |
We are a US employer that conducts business in China, specifically manufacturing. We recently let a QC Inspector go who is Chinese. He tells us that China law requires employers to compensate terminated employees 1 month salary for each yr of service. He sent us a copy of a document that was supposedly issued by the Mnistry of Labor.
Can anyone verify this is true? |
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China Labor Law
posted at 7/12/2007 5:46 AM EDT
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Posts: 2146
First: 2/15/2006 Last: 9/14/2011 |
Here is an exerpt of an article that discusses Chinese Labor Law:
"One month of salary for every year of service is the current standard under the PRC Labor Contract Law. The average wage remains relatively low in China, so this provision presents limited risk to most foreign companies doing business in China. In fact, the municipal average may help lower the amount owed to long-tenured, high-paid employees. However, the circumstances for severance payments have been expanded, meaning that more employees may be entitled to severance under the proposed law than under the current law. Accordingly, companies are likely to face increased employment costs." And here is a link to the whole article: http://www.thelen.com/index.cfm?section=articles&function=ViewArticle&articleID=3243 rr |
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