China: DaHui Labor And Employment Law Monthly Update

Last Updated: 8 January 2017
Article by Patrick Gu


Attention Degree: ☆☆☆☆☆

State: The Ministry of Human Resources & Social Security (MOHRSS) released the Interim Measures for Publicizing the Acts in Material Violation of Labor Protection Laws (Draft for Comments)

On 22 June 2016, the MOHRSS released the Interim Measures for Publicizing the Acts in Material Violation of Labor Protection Laws (Draft for Comments) (Draft). The Draft further interprets the circumstances for publicizing material violations under Article 22 of the Regulations on Labor Security Supervision. Under the Draft, the following eight categories of employer violations relating to labor security should be publicized (if the relevant cases have been closed):

  • Employers who make deductions from or delay payment of employees' labor remunerations without cause, which results in collective petitioning and other mass disturbances or extreme events; or are suspected of refusing to pay labor remunerations and are transferred to the judicial authorities for investigation of criminal liability;
  • Employers who fail to purchase social insurance or pay social insurance premiums in accordance with law, which results in serious consequences;
  • Employers who illegally hire or recommend child labor, which results in serious consequences, such as the disability or death of a child labor;
  • Employers who violate the provisions on working hours, rest and leave, which seriously harms the health of employees or results in the death thereof;
  • Employers who violate the provisions on special protection for female and minor employees, which results in serious physical and mental damage and other consequences;
  • Employers who receive an administrative penalty imposed by the administrative departments of human resources and social security relating to labor protection, and they meet the conditions for filing a hearing;
  • Employers who commit any other violations relating to labor protection other than back payment of labor remunerations, which results in the collective petitioning of more than 30 people and other mass disturbances or emergencies that cause adverse social influences; and
  • Employers who commit other acts that materially violate labor protection laws specified in laws, regulations and rules.

The information publicized should include the full name, registration number and address of the illegal entity, the name of its legal representative or person in charge, facts regarding the illegal acts and related punishments.

Read More

Highlights: Pay attention to labor, employment and social security compliance in order to avoid incidents that could cause damage to enterprise reputation.

Shanghai: Measures for the payment of wages by enterprises have been amended

On 27 June 2016, the Shanghai Municipal Human Resources and Social Security Bureau (SMHRSSB) issued the new Measures for the Payment of Wages by Enterprises in Shanghai Municipality (Hu Ren She Zong Fa [2016] No. 29) (New Wage Measures), which will be implemented starting 1 August 2016.

The New Wage Measures clarify some vague issues in previous practices:

  • The wage includes the hourly wages, piece-rate wages, bonuses, allowances, subsidies and overtime wages etc.,
  • In the event that the employment contract specifies the monthly wage of the employee, the calculation basis for overtime and leave wages shall be the employee's regular monthly wage, excluding the year-end bonus, commuting allowance, meal allowance, housing subsidy, night shift allowance, high-temperature allowance, overtime wage and other wages paid under special circumstances;
  • If neither the employment contract nor the collective contract specifies the monthly wage of the employee, the calculation basis for overtime and leave wages shall be 70% of the employee's regular monthly wage (excluding overtime wages) based on Section 2 of the New Wage Measures;
  • As for employees who participate in social or enterprise organized celebrations or work as usual during Women's Day, Youth Day or other such holidays for a certain group of citizens, employers shall pay wages but not overtime wages. If such holidays fall on rest days and the employer requires employees to work without compensation leave, the employer shall pay no less than 200% of the hourly or daily wages to the employees;
  • Where an employment contract cannot be performed due to detention of employees for suspected crimes or other objective reasons, the employer is not liable to pay wages, unless otherwise required by laws and regulations or as agreed between the employer and the employee; and
  • If the employer terminates the employment contract with the employee, but the decision is rescinded by a competent labor dispute arbitration commission or people's court, and the two parties reinstate the labor relationship, the employer shall pay the employee wages for the time periods covering mediation, arbitration and the litigation proceedings.

Read More

Highlights: Wage payment provisions in Employment Contracts and Employee Handbooks should be reviewed based on the New Measures. Pay attention to the calculation base of the overtime and leave wages.


Attention Degree: ☆☆☆☆☆

Beijing: Beijing released the 2015 annual average wage of employees

On 3 June 2016, the Beijing Municipal Human Resources and Social Security Bureau (BMHRSSB) and the Beijing Municipal Bureau of Statistics jointly issued the Notice on the Publication of the Average Wage of Employees in Beijing for 2015, revealing that the annual average wage of employees in Beijing in 2015 was RMB 85,038 and the average monthly wage was RMB 7,086.

Read More

Beijing: Maternity leave has been extended and late childbirth leave is cancelled

On 1 June 2016, the BMHRSSB released the Notice on Adjustment to Policies concerning the Maternity Insurance of Employees in Beijing (Notice on Maternity Policies), which states that 30 days of maternity leave have been added, together with the existing maternity allowance, and the 30-day late childbirth leave plus its allowance are now cancelled. The Notice on Maternity Policies was implemented on 24 March 2016.

An insured that gave birth after 1 January 2016 and has received the maternity allowance for late childbirth leave in accordance with the previous regulations will no longer enjoy the allowance for the extended maternity leave. The maternity allowance for late childbirth leave and that for the extended maternity leave shall not be enjoyed cumulatively.

Read More

Shanghai: The maximum and minimum contribution premium for the monthly housing fund payment has been adjusted

Starting 1 July 2016, the maximum contribution premium for the monthly housing fund payment will be RMB 2,494 and the minimum contribution premium will be RMB 282. The maximum contribution premium for monthly payment of the supplementary housing fund is RMB 1,782.

The housing fund payment basis for new employees who worked from 1 January 2016 shall be the monthly wage of the second month or the average monthly wage after he/she has been employed. The housing fund payment basis for newly transferred employees from 1 January 2016 shall be the wage of the month that he/she is transferred or the average monthly wage.

Read More

Shenzhen: Adjusts Social Insurance Premium Contribution Basis and Compensation Repayment Basis for 2016

On 15 June 2016, the Shenzhen Social Insurance Fund Management Bureau released the Notice on Shenzhen's Adjustment of Social Insurance Premium Contribution Basis and Compensation Repayment Basis for the Year of 2016. For 2015, the average annual salary of employees in Shenzhen was RMB 81,034, which is equal to RMB 6,753 (rounded) per month. For the period starting 1 July 2016 and ending 30 June 2017, the social insurance premium contribution basis and the compensation repayment basis, which refers to the average monthly salary of employees in Shenzhen last year, shall be RMB 5,525 per month and RMB 6,753 per month, respectively.

Read More

Highlights: Pay close attention to the adjustment of average social wages, the social insurance premium contribution basis, the maximum and minimum of housing fund contributions and the cancellation of late maternity leave; relevant contents in the employee handbook and rest/leave policies should be updated.


Attention Degree: ☆☆

Shanghai: Shanghai Federation of Trade Unions "Locks Down" 35 Problematic Enterprises for Labor Law Violation Oversight

It was reported on 20 June 2016 that the Shanghai Federation of Trade Unions has begun to lock down enterprises that severely infringe upon the rights of employees' in collective labor disputes and will conduct limited-time supervision and periodic supervision over these problematic enterprises on a quarterly basis.

Thirty-five problematic enterprises have been locked down so far. For enterprises that refuse to make changes, the Shanghai Federation of Trade Unions says it will use Trade Union Labor Law Supervision Opinion and Trade Union Labor Law Supervision Recommendation to force their compliance.

Highlights: Trade Unions can legally supervise an employer's compliance with labor law and regulations. The Shanghai Federation of Trade Unions has taken various measures to oversee enterprise labor disputes, especially collective labor disputes. We suggest that related enterprises avoid and prevent any collective labor disputes.


Attention Degree: ☆☆

State: Regulations of People's Republic of China on Administration of Permanent Residence of Foreigners (Draft) Released for Comments

The Ministry of Public Security published the Regulations of People's Republic of China on Administration of Permanent Residence of Foreigners (Draft) (Permanent Residence Draft) on June 7 for public comments. The comment period ends on July 8.

According to the Permanent Residence Draft, applicants who satisfy one of the following conditions may submit an application for permanent residence:

  • Teaching and scientific research staff, innovation team members, technical specialists and managing staff employed by qualified schools, science institutions and innovation enterprises, who have worked in China for 4 consecutive years (during which the aggregate stay period is no less than 1 year) and maintained good tax records and social credit records;
  • Applicants who have worked in China for 4 consecutive years, during which the applicant's annual stay period is no less than 6 months, with annual income in the form of wages and the amount of tax payment reaching required standards, and who have also maintained good social credit records;
  • Foreigners who have invested in certain regulated fields in China with the duration and amount of investment, number of Chinese citizens employed and amount of tax payment reaching required standards, and who have also maintained good social credit records.

Read More

Shanghai: First Internship Work Permit Issued for Foreigners

On 20 June 2016, the SMHRSSB Job Promotion Center issued the first Foreigner Work Permit, which has a note of "internship", to an international student from France. This is the first time that Shanghai has opened itself to foreign students for internships.

Enterprises located in China that are willing to accept French interns should submit applications at provincial or municipal level human resources and social security agencies. After which, enterprises must fill out a foreigner work permission application form and submit the required materials. French interns can apply for Residence Permits for Foreigners by presenting their Foreigner Work Permit with a note of "internship" and a Z Visa.

Read More

Highlights: French students interning at Chinese enterprises may apply for a special "internship" work visa.


Attention Degree: ☆☆☆☆

Guangzhou: Company's Publication of its Employee's Hepatitis B Condition Infringes upon the Employee's Privacy Right

It was reported on 12 June 2016 that the Guangdong Province Guangzhou Baiyun District People's Court held that a company's publication of its employee's Hepatitis B condition infringed upon such employee's privacy right. The employee went through an employee physical examination arranged by the company and received a positive HBsAG test report, which was subsequently sent by the examining hospital directly to the company. When the company noticed that the employee was infected with Hepatitis B, it published such information, which resulted in unjust discrimination against the employee.

The employee sued the company for infringement of his privacy right. The court held that the company infringed upon the privacy right of the employee and inflicted emotional distress. The court held that the company must issue a written apology and compensate the employee RMB 5,000 for emotional distress.

Highlights: According to the Notice on Further Standardizing the Physical Examinations for Educational Enrollment and Employment to Protect the Right of HBsAg Carriers to an Education and Employment issued by MOHRSS, unless requested by the examined individual, the physical examiner should not perform a Hepatitis B test or ask the examined individual if he/she carries HBsAg. Excepting those for certain special occupations, whose health condition is allowed to be published by the Ministry of Health, physical examinations should not include a Hepatitis B test. The employer should not decline employment, recruitment, or terminate employment of an employee based on the fact that such worker carries HBsAg. All Hepatitis B test reports should be sealed, only opened and reviewed by the examined individual. No employer or individual is allowed to review the physical examination report of others.

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.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


From time to time Mondaq may send you emails promoting Mondaq services including new services. You may opt out of receiving such emails by clicking below.

*** If you do not wish to receive any future announcements of services offered by Mondaq you may opt out by clicking here .


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.