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How to tackle China Labor Laws #2

By Cyrus, on February 21st, 2010
Number of View: 3244

Remember my question “How employer defend when employee claim for compensation?” I would say majority are fictitious (虚构) and others are truly protected by China Labor Law. Compensation could consists of wages, incentives, allowance, medical fees and other ridiculous monetary like psyche injury fees (精神损失费)  and is acknowledged by local law!

Wages compensation depends on number of years signed between company and workers, 1 year contract 1 month compensation, 2 years contract 2 months and so forth. Therefore usually workers would not blackmail on this category as already enforced by local law, but if company didn’t sign labor contract with workers within 1 month, the penalty is 3 months wages compensation. Therefore is very important to give your trustworthy production head to sign labor contract on behalf of company, please refer back to “How to tackle China Labor Laws #1″. This could give pressure to your production people responsible and pay more attention to new workers and workers evaluation during probation period before is too late to salvage.

Don’t forget if your payroll didn’t separate normal working hours and overtime hours, workers could easily blackmail company to recompense their overtime wages from the day they starts work! This is a common trick because laws states that working more than 8 hours per day accumulative 40 hours per week and beyond this limit are all treated as overtime. Eventough if you explain their monthly pay already includes overtime in black and white with workers signature but the local laws stands the final justice! Example minimum wage RMB770 but company pays RMB1000, workers agree on salary including overtime but according to Labor Laws overtime calculation you still underpay to workers hence they have the rights to pursue all overtime wages from the very beginning! Therefore only way is to settle all wages immediately on the spot during workers fire out otherwise they will have time to calculate and investigate. Because there is one loophole in Labor Laws, once workers agree to sign and rescind labor contract there is no dirty tricks for them to blackmail company in the future!

Incentive and allowances in monetary if is stated in labor contract company have to compensate according to the number of monthly wages compensated.  If your incentives and allowances are regulated by workers performance or attitude, if you holds their documentation proof on violations, company have the rights to forbid compensation. Therefore all warning letters must be kept properly to prevent workers deny in the future and blackmail company.

Medical fees has no standard if is proven as industrial injury (工伤). If you buy social insurance (社保) for workers but if the medical fees goes beyond government social security compensation limit, the balance company has to compensate. Therefore the only way to protect yourself is to buy another additional injury insurance to compensate the balance difference to minimise your losses. When major accidents happen causing major life losses the compensation could makes you bankrupt hence is necessary to buy extra coverage from private insurance company.

Other unreasonable compensation it all depends on company fast reactions. Some standards could provide for reference. First, company has to consult both legal advisor and China Labor Authority enquiry personnel to verify the compensation if is valid. Secondly company must not agree or sign any documents to workers or accept their documents to prevent falsely incriminate or embroil (诬赖). Lastly never company head stands out as mediator always give the responsibility to the department head to conciliate and investigate on the root cause, if possible negotiate on the minimum compensation. Always remember compensation once is valid do it fast otherwise it would become snowball effect on your own pocket money!  I will discuss “How to control, solve and prevent a workers’ strike?” on my next article.


 

  Copyright protected by Digiprove © 2010 Cyrus Chang

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17 comments to How to tackle China Labor Laws #2

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    May 11, 2011 at 1:15 am

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    May 18, 2011 at 9:47 am

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    May 18, 2011 at 10:18 am

    hey I saw that there is a page that is copying all of your content! Do you want me to show you their page???

  • Freddy Cullen
    May 19, 2011 at 9:57 pm

    Writing is a skill which cannot be mastered by all. It is a talent that has to come from within the writer. People recognize their talent to write during different phases of life.

  • Pamala Search
    May 20, 2011 at 3:36 am

    superlative entry you’ve carry

  • Vintage Postcards
    May 21, 2011 at 6:54 am

    Interesting, I wonder what the statistics are on your first point there…

  • Asian Movies Download
    May 21, 2011 at 1:25 pm

    Well, I don’t know if that’s going to work for me, but definitely worked for you! :) Excellent post!

  • rca ieftin
    May 22, 2011 at 10:51 am

    Strange this post is totaly unrelated to what I was searching google for, but it was listed on the first page. I guess your doing something right if Google likes you enough to put you on the first page of a non related search. :)

  • Alarmes maison
    May 24, 2011 at 1:57 am

    Thank you for the advice. I’ve found your first point to be most effective.

  • pandaranol
    May 24, 2011 at 10:47 pm

    For why I suspect its time to buy , see my previous article.

  • YouTube to MP3
    May 26, 2011 at 11:50 pm

    Wierd , your article shows up with a blue hue to it, what color is the primary color on your site?

  • YouTube to MP3
    May 27, 2011 at 1:01 am

    Thats some good basics there, already knew some of that, but you can always learn more. I doubt a “kid” could put together such information as dolphin278 suggested. Maybe he’s just attempting to be “controversial? lol

  • deck stain
    May 28, 2011 at 11:53 am

    Thanks for the advice. Will put it to work. Tom

  • Data Recovery Company
    May 28, 2011 at 4:52 pm

    Grand poteau ! Merci pour prendre le temps d’écrire quelque chose qui est réellement en valeur la lecture. Trop souvent je trouve l’information inutile et pas quelque chose qui sont réellement appropriées. Merci pour votre dur labeur.

  • Devonshire Diamonds
    May 28, 2011 at 11:24 pm

    So not really on the same topic as your post, but I found this today and I just can’t resist sharing. Mrs. Agathe’s dishwasher quit working so she called a repairman. Since she had to go to work the next day, she told him, “I’ll leave the key under the mat. Fix the dishwasher, leave the bill on the counter, and I’ll mail you the check. Oh, and by the way…don’t worry about my Doberman. He won’t bother you. But, whatever you do, do NOT under ANY circumstances talk to my parrot!” When the repairman arrived at Mrs. Agathe’s apartment the next day, he discovered the biggest and meanest looking Doberman he had ever seen. But just as she had said, the dog simply laid there on the carpet, watching the repairman go about his business. However, the whole time the parrot drove him nuts with his incessant cursing, yelling and name-calling. Finally the repairman couldn’t contain himself any longer and yelled, “Shut up, you stupid ugly bird!” To which the parrot replied, “Get him, Spike!”

  • Johnnie Heppler
    May 29, 2011 at 9:31 am

    Hey this is a decent write up. Can I use some of it on my page? I would of course link back to your site so people could read the complete post if they wanted to. Thanks either way.

  • Chauncey Stuhlsatz
    May 29, 2011 at 2:03 pm

    That was intriguing . I admire your finesse that you put into your work. Please do move forward with more like this.

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