On September 1, 2016, the PRC Ministry of Human Resources and Social Security ("MOHRSS") issued the Public Announcement of Major Labor and Social Security Violation Acts Measures ("Measures"), which will take effect on January 1, 2017. Under the Measures, major labor and social security law violations will be announced through labor authorities' official websites and major local media, as well as recorded in the employer's labor and social security credit file. In addition, they will be included in a human resources social security credit system, as part of the national society credit system, to be shared with other government agencies and organizations. Municipal and county-level labor authorities are required to announce major violation cases once a quarter, and MOHRSS and provincial level labor authorities are required to make announcements twice a year.
Major labor and social security violations include: (i) delaying or deducting salary payments or refusing to make salary payments; (ii) refusing to enroll in the social insurance system or refusing to make social insurance contributions; (iii) serious violations of rules on working time, rest time, holidays, protection of female employees and minor employees (under the age of 18 but reaching the age of 16), or prohibition of hiring child laborers (under the age of 16); and (iv) violations causing severe adverse impact to society.
What is regarded as "serious" or "severe" will be determined by local labor authorities according to their applicable standards.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.