Labor Contract Law
With the deepening of the reform of China's socialist market economic system, the importance and complexity of China's corporate labor relations are becoming more and more prominent. Unharmonious enterprise labor relations not only affect the income of workers and the loyalty of employees to the enterprise, but also affect the survival and development of enterprises and social stability. Strikes and collective resignations due to the disharmony of enterprise labor relations will undoubtedly bring unnecessary and incalculable losses to the enterprise.
Currently, due to China's enterprise labor relations management system is not sound, resulting in China's workers' rights and interests are infringed upon phenomenon occurs frequently, the contradiction between the two sides of the enterprise labor relations continue to intensify, the labor disputes cases have increased dramatically. Only through the establishment of harmonious enterprise labor relations, enterprise labor quality and efficiency can be maximized, and enterprises can create the material and cultural foundation needed to build a harmonious society. And from the perspective of human resource management, only the establishment of a harmonious enterprise labor relations, can stimulate the enthusiasm of the majority of employees, can improve the loyalty of employees to the enterprise.
Labor relations is a key to crack the social relations in the context of market economy. Balancing labor-management relations and protecting the human rights of workers is a problem that all governments in market economies must solve. Labor relations have the nature of administrative affiliation, which puts workers in a relatively weak position, and makes it difficult for them to compete with employers in the labor market; workers have made great contributions to economic and social development through hard work, but there is a serious imbalance between what they have paid and what they should get. For this reason, the modern international and domestic labor law generally to protect the rights and interests of workers as its base and core, in order to achieve the balance of labor-management relations, the protection of workers' human rights.
In China's current social state of "labor-management imbalance," the basic human rights granted to workers by the Constitution are often not effectively implemented and safeguarded. Under these circumstances, a large number of labor disputes have arisen, which cannot be resolved through other means of redress, and eventually crowd the door of judicial redress, which is the "last safety valve".
An analysis of the current situation of labor disputes in China
Overall, according to the 2005 statistics show that China's labor disputes have the following characteristics:
5. Labor compensation, insurance benefits and termination of labor contracts are still the focus of labor disputes
Labor compensation and insurance benefits are the main factors that cause labor disputes. In 2005, the number of disputes over labor remuneration and insurance benefits was the highest, at 103,000 and 102,000 cases respectively. These two types of cases accounted for 33% and 32% of the total number of cases received that year. In the past three years, the number of labor dispute cases in both insurance benefits and labor remuneration accounted for more than 60% of the total number of cases in that year. Labor remuneration and insurance benefits have been the main causes of labor disputes for several consecutive years. Among them, disputes over unpaid wages still accounted for a high proportion of labor remuneration disputes.
The number of disputes over the termination of labor contracts has continued to increase; in 2005, 55,000 disputes over the termination of labor contracts accounted for 17.5% of the total number of cases accepted. In recent years, there has been a rising trend in labor contract termination disputes, with cases of labor contract termination disputes accounting for 65.9% of all labor contract dispute cases in 2002, 68.9% of all labor contract dispute cases in 2003, 70.5% of all labor contract dispute cases in 2004, and 71.8% of all labor contract dispute cases in 2005. This indicates that the current labor contract disputes are basically disputes over the termination of labor contracts, and also indicates that due to the increased restructuring of enterprises at this stage, among other reasons, the fulfillment of labor contracts has been greatly affected, which has led to the early termination of labor contracts by both parties to the labor relationship.
The necessity of signing labor contracts
From 1997 to 2003, the number of labor dispute cases nationwide that year rose sharply from 71,524 to 226,391, an increase of nearly 2.2 times in six years. Labor dispute cases in state-owned enterprises rose rapidly before 2000, while after 2000, with the gradual completion of the restructuring of state-owned enterprises, non-publicly owned enterprises gradually became the key sector for labor dispute cases.
According to statistics from the China Labor Statistics Yearbook, the number of private enterprise labor dispute cases accepted by labor dispute arbitration committees at all levels nationwide increased from 7,327 in 1997 to 45,098 in 2004, showing a relatively rapid upward trend. Among them, the 43% increase in 2004 over the previous year is noteworthy. In addition, the number of labor disputes in private enterprises in 2004 accounted for 17.3 percent of the total number of similar cases in the whole society.
Possible causes of labor disputes in the private sector include the fulfillment, modification, cancellation and termination of labor contracts, etc. In 2002, the main cause of labor disputes in the private sector was the fulfillment of labor contracts, which accounted for 78.3% of the total number of labor disputes, amounting to 30,618 cases. The termination of labor contracts and other aspects relating to the basic rights and interests of workers were also important causes of disputes.
The fulfillment of labor contracts includes four aspects, namely, labor compensation, insurance and welfare, work injuries and vocational training. 2002 data showed that the number of cases arising from labor compensation, insurance and welfare, work injuries and vocational training were 12,169, 5,502, 6,226 and 95, respectively, with labor compensation being the most important cause of disputes over the fulfillment of labor contracts and insurance and welfare and work injuries also being the most important causes of disputes during the process of contract fulfillment. Labor compensation is the most important reason for labor contract performance disputes, while insurance benefits and work injuries are also an important reason for disputes in the process of contract performance. Therefore, the causes of labor disputes in private enterprises in China are concentrated in the four aspects of labor compensation, work injury, insurance benefits and termination of labor contracts.
According to a sample survey on the status of the nation's workforce in 2003, a considerable portion of private enterprises do not sign employment contracts, and the signing rate of labor contracts is so low that they are unable to provide legal safeguards for the protection of workers' rights and interests. The national labor contract signing rate is only 57.1%, of which the labor contract signing rate of private enterprises is only 30.5%. In Guangzhou, a city with a developed private economy, the signing rate of labor contracts for employees of state-owned enterprises is around 99%, and the signing rate of labor contracts for Sino-foreign joint ventures is 85%, while the signing rate for private enterprises is only 40%.
As mentioned above, the lack of labor contract system not only puts the labor relations in a state of disorder, but also makes it difficult to protect the basic rights and interests of the workers granted by the law.
The labor rights and obligations between workers and employers are clearly stipulated in the labor contract, which is both a kind of protection and a constraint for both subjects, and is conducive to avoiding or reducing labor disputes. At the same time, in the event of labor disputes, the labor contract is also the main basis for both parties to claim their rights. Therefore, the establishment of a perfect labor contract system is very necessary.
Three, labor contract legislation
Labor contract is a labor contract between the worker and the employer to establish labor relations, clear rights and obligations of the agreement. In the early legislation of the western industrialized countries, labor law belongs to the scope of adjustment of civil law, the principle of freedom of contract. In the French Civil Code of 1804, there is a special clause on labor contract, called "labor lease contract". Under the influence of the Code, many countries such as Italy in Europe, Canada in America and Japan in Asia have included labor contracts in their civil codes.
In the 20th century, out of the state intervention in labor contracts and the need to coordinate labor relations, labor contracts from the civil law into the scope of labor law. Belgium enacted the Labor Contracts Act in March 1900 to legislate from the perspective of labor contracts. France enacted the Labor Code in 1910, the first volume of the employment contract as the second title. Subsequently, many countries have successively placed the labor contract within the scope of labor legislation.
There are three modes of modern labor contract: (1) in the labor code and other basic labor laws will be a separate chapter or a labor contract, such as France, Japan, Canada; (2) the development of special legislation on labor contracts, such as Italy, Belgium, etc.; (3) a few countries still follow the civil law of contract law, or according to the common law has jurisprudence on labor contracts, such as the United Kingdom, the United States and so on.
Since the founding of the Chinese People's **** and the State, labor contract legislation has been an important part of labor legislation. The Measures for the Registration and Introduction of Unemployed Technicians, formulated by the Ministry of Labor in 1950, the Provisional Measures on the Recruitment of Employees in Various Places, formulated in 1951, and the Measures on the Conclusion of Labor Contracts for Construction Workers Recruited by Construction Engineering Units to Overseas Places, formulated in 1954, all require that labor contracts be used to establish the labor relationship. However, with the widespread introduction of the fixed-work system, labor contracts were concluded only between temporary workers and employers. It was not until the early 1980s that there was a breakthrough in labor contract legislation, during which a large number of regulations on labor contracts were promulgated, such as the Provisions on Labor Management in Sino-Foreign Joint Ventures issued by the State Council in 1980, the Interim Provisions on the Implementation of the Labor Contract System in State-owned Enterprises issued by the State Council in 1986, and the Provisional Measures on the Management of Labor Wages in Pilot Enterprises under the Shareholding System of 1993 and other regulations, all of which require labor contracts as a legal form for concluding labor relations.
In the process of labor legislation, the Labor Law of the People's Republic of China*** and the State of China, which came into effect on January 1, 1995, is of particular significance, as it systematically stipulates the definition of a labor contract, its scope of application, its content, the circumstances in which it may be altered, dissolved or terminated, and its application of the law, and lays the legal foundation for the establishment of a unified labor contract system.
The Labor Law has a more comprehensive coverage of the provisions of the labor contract system, however, because the Labor Law is still only a basic law in the field of labor, the various chapters of the law need to be adjusted in detail by specific legal provisions, so it is necessary to formulate a "labor contract law" on the establishment of the labor contract and the termination of the whole process of a systematic and specialized adjustment. In order to complement the implementation of the labor contract system in the labor law, the ministry of labor in the implementation of the labor law at the same time, also formulated the "violation and termination of the labor contract of the economic compensation measures" and "violation of the ＜labor law＞ about the labor contract of the compensation measures".
In order to regulate labor relations more clearly, the call for the enactment of a labor contract law has been growing louder and louder.
On December 24, 2005, the Draft Labor Contract Law was submitted to the Nineteenth Session of the Standing Committee of the Tenth National People's Congress for deliberation; on March 20, 2006, the Draft Law on Labor Contracts was open for public consultation, and this law, which concerns the immediate interests of hundreds of millions of people, became the focus of social attention. In the process of legislative research, drafting and deliberation of the Labor Contract Law, from the legislative purpose to specific provisions, labor and management have launched a tit-for-tat legislative game, open door legislation received 191,849 opinions, which has caused a very wide range of social concern and strong reaction.
On December 24, 2006, the Labor Contract Law (Draft), which fully incorporated the opinions of all parties and made substantial changes, was submitted to the 25th meeting of the Standing Committee of the National People's Congress (NPC) for a second hearing. In accordance with the legislative process, the draft went into the third trial.
On June 29, 2007, the 28th meeting of the Standing Committee of the 10th National People's Congress (NPC) passed the Labor Contract Law by a high vote. The much-anticipated law will come into force on January 1, 2008, after being published in full to the public for comments and four times of deliberation.
Fourth, the practical significance of the labor contract from the perspective of the contract
As long as the relationship between people is established, some kind of contract will arise between them.
Contracts are commonly known as contracts or agreements. Article 1101 of the French Civil Code (i.e., the Napoleonic Code) defines a contract as, "A contract is an agreement whereby one or more persons are liable to one or more other persons for a payment, an act or an omission." Subsequent developments in the institution of contract have broadened its meaning. At the commercial or economic level, it is a way of alienating property rights recognized by society***; at the moral and ethical level, it is the embodiment of the moral principle that one should keep the agreements one has entered into and fulfill one's promises; and at the political level, the contract has become a form of law that links the government to the people.
Contract in the law refers to "two or more parties to a legally binding agreement, or by more than one party for a group of legally binding promises." From this concept, it is not difficult to analyze the structural elements it contains:
First, the concept of "contract" implies that the subject of the contract or the parties to the plural, the subject of the contract is two or more parties;
Second, the concept of "contract" implies a certain purpose. Secondly, the concept of "contract" implies a certain purpose and reciprocity, which means that there must be a certain purpose for contracting, and the contract is concluded in order to pursue a certain benefit or good, and the realization of the purpose is the realization of reciprocity between the two parties;
Thirdly, the concept of "contract" implies a certain degree of agreement and a certain form of promise, which means that the contract is concluded in order to pursue a certain benefit or good, and the realization of the purpose is the realization of reciprocity between the two parties. Thirdly, the concept of "contract" implies some degree of agreement and some form of promise, i.e., the reaching of consent and agreement. This agreement may be in the opposite direction or in the same direction, while the promise is the core and substance of the contract, and only the promise makes the agreement meaningful, so that the contract is ultimately established;
Fourth, the concept of "contract" implies binding force, obligation and responsibility. The legal concept of a contract is clearly legally binding, and the realization of such duties and obligations depends primarily on the law.
From the definition of contract, it can be seen that the contract defines the rights and obligations of the two parties and the responsibility for breach of contract, which is a binding on the future actions of the two parties, reducing uncertainty. Moreover, the contract itself has strict provisions or terms. Therefore, the contract will produce specific constraints on the organization and its employees, regulating the behavior of both parties and contributing to the achievement of organizational goals, belonging to one of the key elements in the employment relationship.
Fifth, China's labor contract system in the implementation of the main problems
1. Labor contract signing rate is low, the legitimate rights and interests of workers are not effectively protected in the event of labor disputes.
According to a sample survey on the status of the national workforce in 2003, a considerable portion of private enterprises do not sign employment contracts, and the signing rate of labor contracts is so low that they are unable to provide legal safeguards for the protection of workers' rights and interests. The national labor contract signing rate is only 57.1%, of which the labor contract signing rate of private enterprises is only 30.5%. In Guangzhou, a city with a developed private economy, the signing rate of labor contracts for workers in state-owned enterprises is around 99%, and the signing rate of labor contracts in Sino-foreign joint ventures is 85%, while the signing rate in private enterprises is only 40%. According to the statistics of the 2004 sample survey, the average rate of signing labor contracts among employed persons in units decreased by nearly 10 percentage points compared with that of 2002. In particular, the signing rate of labor contracts in the construction and food service industries is low, at around 40 percent, the signing rate of labor contracts for migrant workers is around 30 percent, and the signing rate of labor contracts in small and medium-sized non-public enterprises is less than 20 percent. The failure of employers to sign written labor contracts with their workers makes it difficult to confirm the existence of a labor relationship between the two parties, and the rights of workers to wages and remuneration, to participate in trade union organizations and collective bargaining, to economic compensation for the termination of a contract, to social insurance, and so on, which are established on the basis of the labor relationship and are related to the labor relationship, are not effectively safeguarded. In 2005, the Standing Committee of the National People's Congress, in its inspection of the enforcement of the labour law, found that the rate of signing of labour contracts in small- and medium-sized enterprises and non-publicly owned enterprises in some places was still less than 20 per cent, and that the rate was even lower in the case of individual economic organizations. Some enterprises only sign labor contracts with managers and technicians, but not with front-line workers.
The reasons for the low signing rate of labor contracts are complex. Many employers are reluctant to sign labor contracts, mainly to reduce labor costs.
So, after signing a labor contract, how much does a worker actually add to the cost of the enterprise? There are three main aspects.
Take the example of an enterprise in Nanjing that does not pay five insurance for its employees, does not give economic compensation for dismissal, and does not implement paid vacation:
In terms of social insurance, according to the regulations of Nanjing, the minimum social security contribution base that an enterprise has to pay for its employees is 1,189 yuan per month, and the five insurance policies, namely, old-age pension, unemployment, maternity, work-related injury, and health care, total 536.73 yuan per person per month, of which 140.79 yuan is borne by an individual, and 536.73 yuan is paid by a person. Among them, individuals bear 140.79 yuan, the enterprise has to pay social security premiums of 395.94 yuan per month for an employee.
Enterprises need to give employees economic compensation for the dismissal of employees, enterprises and workers signed a labor contract expiration of the need to terminate the labor relationship, the enterprise has to pay economic compensation to the workers, economic compensation according to the number of years of work in the unit, every full year to pay a month of wages to the standard payment to the workers. If it is not based on a full year, it is calculated according to one year. In other words, instead of paying 12 months of salary per year, the enterprise actually pays 13 months of salary per year to the employee. Calculated on the basis of the minimum wage of 850 yuan for workers in Nanjing, the enterprise will have to pay an additional 850 yuan per year.
Regarding the mandatory paid vacation, employees who have worked in the enterprise for more than one year and less than 10 years must take a paid vacation of five days, or else they have to pay overtime at three times their salary. Enterprises for this expenditure is: annual working days: 365 days - 104 days (rest days) - 11 days (legal holidays) = 250 days; according to this calculation, the actual working days per month is 20.83 days, according to the minimum wage standard of 850 yuan for employees, each working day wage of 40.8 yuan, if the employees are not allowed to paid leave, the enterprise will have to pay the employees 612 yuan per year.
With the above three items, the enterprise pays an additional 6,214 yuan per employee per year, and the labor cost of the enterprise has risen by 61 percent according to the minimum wage in Nanjing.
Some workers do not dare to make a request to sign a labor contract, mainly because they are in a disadvantaged position in a situation where supply exceeds demand in the labor market.
2. Labor contracts are short-term and labor relations are unstable.
According to relevant surveys, by 2005, the duration of labor contracts nationwide was dominated by short-term contracts, with about 60% of those signed for less than three years and only 20% of those signed for an indefinite period. In order to reduce dismissal costs, many employers prefer to enter into short-term labor contracts with workers year after year, rather than signing a longer-term labor contract with them. This situation, to a certain extent, affects the stability of labor relations, but also to a large extent, affects the employees' sense of occupational stability and sense of belonging to the enterprise, affecting their work enthusiasm and career planning for long-term service to the enterprise, the long-term development of the enterprise, the stability of society has a negative impact.
The main reason for the short-termization of labor contracts is that employers try to maximize the free choice of workers through short-term labor contracts and reduce the economic compensation payable to workers for the termination of labor contracts. Some enterprises spend the lowest possible cost of employment to use workers in their most energetic "adolescent years". This situation not only jeopardizes the legitimate rights and interests of workers, but also affects their sense of stability and belonging to the enterprise, and their enthusiasm to serve the enterprise for a long period of time. Facts have proved that: short-term labor contracts, not only damage the legitimate rights and interests of workers, the enterprise's own development will eventually be affected.
3. Employers use their own strong position in the labor relationship to violate the legitimate rights and interests of workers.
In the labor market supply exceeds demand, employers use their strong position in labor relations to violate the legitimate rights and interests of workers occur from time to time. Some employers abuse the probationary period, with workers in the probationary period does not meet the conditions of employment as a "reason", the probationary period will not be hired; some employers by setting a longer probationary period, to avoid the legal obligations of the workers; some employers in violation of the laws and regulations, delayed, withholding workers' wages, do not pay social insurance premiums in accordance with state regulations; some employers in violation of laws and regulations, delayed, withholding workers' wages, do not pay social insurance premiums in accordance with state regulations. Some employers violate laws and regulations by delaying or withholding workers' wages and failing to pay social insurance premiums in accordance with state regulations; some employers do not enforce the standard labor quotas, arbitrarily prolonging working hours and failing to pay overtime; some employers even impose forced labor on workers; and some employers arbitrarily set up liquidated damages to restrict the freedom of workers to choose their own jobs and the reasonable mobility of the labor force, thus causing the lawful rights and interests of the workers to be seriously infringed upon. These problems have seriously affected the harmony and stability of labor relations. In recent years, there has been a rising trend of labor dispute cases and mass incidents arising from labor disputes. According to the statistics of the Ministry of Labor and Social Security, in the 12 years from 1995 to 2006, the number of labor disputes increased by 13.5 times, and the number of collective labor disputes increased by 5.4 times. Therefore, it is an urgent need to formulate a law on labor contracts on the basis of summarizing the practical experience since the implementation of the labor law, improving the system of labor contracts and rationally regulating labor relations.
4. Collective contract legislation is missing.
Since the promulgation and implementation of the Labor Law in 1995, under the promotion of the All-China Federation of Trade Unions (ACFTU), the collective contract system has been carried out rapidly in China. By the end of 2003, 672,900 collective contracts had been signed nationwide, covering 1.214 million enterprises and 103.5 million employees. Of these, 537,400 were signed by enterprises alone, covering 67,066,700 employees. Of these, 186,700 were public enterprises with 46.683 million employees, and 273,200 were non-public enterprises with 12.93 million employees. Regional industrial collective contracts*** 135,400 have been signed, covering 676,700 enterprises and 36,416,000 employees. Of these, 95,200 regional collective contracts were signed, covering 542,700 enterprises and 23,981,600 employees; 40,200 industry-specific collective contracts were signed, covering 134,000 enterprises and 12,434,400 employees. Nationwide, 293,100 enterprises have carried out collective wage negotiations and signed wage-specific collective agreements, covering 35.79 million workers. Nationwide, 5,062 tripartite coordination mechanisms have been established at all levels.
But with the implementation of the collective contract system in China, problems in the legislation have gradually been exposed, which include: (1) the low legislative level of the regulations and the lack of legal authority. (2) The provisions of the law are scattered, too principled, lacking in operability, and inconsistent between the provisions of the law. (3) The scope of implementation of collective contracts is too narrow, and there is a lack of regulations on collective contracts for trades or industries as well as regions. China's provisions on collective contracts still remain at the enterprise level, and there are no provisions on collective contracts at the regional, industry and sectoral levels; although some places have made attempts to do so in recent years, they lack a corresponding legal basis. (4) There is no clear responsibility for collective consultation and the signing of collective contracts.
Fifth, the urgency of the Labor Contract Law and its practical significance
From the above can be seen, January 1, 1995, the implementation of the "People's Republic of China *** and the State Labor Law" (hereinafter referred to as the "Labor Law") in the third chapter of the "labor contract and collective contract" ****17 articles However, as the basic law of the Labor Contract Law to be enacted in the future, the existing provisions of the Labor Law are far from being able to adapt to the numerous problems existing in practice. Because the legislation on labor contracts in the Labor Law is too principled and the Labor Contract Law has not yet been issued in time, central government departments have issued many departmental regulations and related policies to adjust the many problems in the reality of labor relations. Most of these regulations and policies are summaries of the practice of implementing the labor contract system, but their effectiveness is limited to the business scope of the labor administration department. The effectiveness of these regulations and policies is often questioned by the courts in the course of litigation; in order to solve the problems that exist in the judiciary in various places, the Ministry of Labor has issued a large number of "Answers" and "Circulars", etc., the effectiveness of which is also low; various places have also enacted legislation, the contents of which go far beyond the scope of the Labor Law, and some of which are far beyond the scope of the content of the Labor Contract System. The contents of these laws are far beyond the scope of the Labor Law, and some of them are not standardized. Based on this, it is necessary to summarize the problems that have arisen since the implementation of the Labor Law, to organize the existing provisions, and to formulate a special "Labor Contract Law".
The Labor Contract Law finally came into force on January 1, 2008 as scheduled under the attention of many people. Its introduction has its inevitability and great far-reaching significance.
First of all, the strategic thinking of the current central government is to insist on sustainable development, build a harmonious society, focus on social justice, and solve the problems of people's livelihood; the 1994 Labor Law had some deficiencies in the design of the labor contract system, the pursuit of legal responsibility, and the scope of its use was relatively narrow, because after all, in the early 1990's, there had not yet appeared so many forms of employment in the Chinese society. forms of labor. For example, contractors and labor dispatch companies, which are not protected by the Labor Law, are the main employers of grassroots workers.
Secondly, in terms of overall economic development, the government wants to boost domestic demand and change its over-reliance on exports, but while China's GDP is growing at a rapid pace, the ratio of workers' wages to GDP has been declining year by year. India, which is also a developing country, pays its manufacturing workers twice as much as their Chinese counterparts.
In addition, the country hopes to change the status quo of economic competitiveness that relies too much on low labor costs, raise the level of industry, and change the status quo of China's manufacturing enterprises that have always been in the lowest-profit link in the global industrial chain.
VII. Impact of the implementation of the Labor Contract Law
Employers "increased labor costs" of the "bitter"
The main legislative intent of the Labor Contract Law is to establish harmonious and stable labor-management relations. In reality, after the implementation of the Labor Contract Law, we have seen the joy of the workers, but also heard some employers "increased labor costs" of the "bitter". The Labor Contract Law has been implemented for less than half a month. However, nearly half a year before the launch of the draft stage, has given Chinese enterprises enough time to think, response. Some have re-signed contracts to circumvent the new law, such as Wal-Mart, some have claimed that their companies have long been employing workers in accordance with or even beyond the new law, such as Vanke, some have campaigned for policy-making authorities, such as Fujitsu, and some have closed their doors and quit.
According to an interview with China Entrepreneur, a number of entrepreneurs interviewed estimated that under the Labor Contract Law, companies will generally face a 5%-40% increase in wage costs. Those feeling the most pressure are obviously those labor-intensive enterprises and small and medium-sized enterprises.
The standards for dismissal compensation, overtime compensation and paid leave compensation under the Labor Contract Law are all directly linked to employee wages, which gives the concept of "employee wages" room for revision. The concepts of lump-sum salary and annual salary have been decisively discarded, and the wage scale of the planned economy era, which consists of basic salary and various subsidies and bonuses, has been reintroduced. Almost all of the 10 entrepreneurs in the Yangtze River Delta interviewed have revised their employees' wages. It's the story of "three days in a row", the total number of wages remains unchanged, but it is clear that only a part of the basic salary, and the rest is overtime pay." Ling Lanfang, chairman of Zhejiang Huzhou Silk Road, told reporters frankly that he no longer had to worry about overtime pay for workers who worked six days a week. Wang Licheng, chairman of Hangzhou Huali Group, has also re-tuned the salary scales of the four companies under the group, ranging from 70% to 30% of the total original salary for each of the basic salary items from the bottom staff to the management. "Dismissal, overtime, paid leave compensation are a number of multiples of the basic salary, can not say that I give the staff bonus subsidies should also be doubled to compensate the staff." It is understood that employees can understand this adjustment.
In the big city foreign enterprises are regarded as "natural" paid annual leave is still difficult to be accepted by most of the Yangtze River Delta manufacturing enterprise owners understand. Foreign trade-oriented enterprises are under even greater pressure: "The list came to hate can not be done in one day, all the vacation to go what I do?" China's largest sock manufacturing enterprises located in Yiwu, Zhejiang Province, a listed company Longsha socks vice chairman of the interview with the reporter in overalls, he came up with a solution is the peak season (when there are more export orders) overtime, off-season shifts and vacation. "My boiler, generator are working continuously, everyone takes annual leave, I'm a business in disarray." Silk Road Ling Lanfang came up with a way to "turn the whole into zero": "the 15 days of annual leave broken up, and other holidays together. For example, the 11th holiday put 3 days, I became put 7 days. In addition, in the hottest time, focus on the whole factory vacation for a week. That breaks up the 15 days."
For companies engaged in simple service industries, employee insurance is likely to be "unaffordable". Hangzhou's largest domestic service company three for the general manager of the group Tao Xiaoying made a calculation, a nanny's monthly salary of 1,200 yuan, 10% of the company for 120 yuan, the company if she has to pay more than 300 yuan of insurance, then a nanny will have to lose more than 200 yuan. "Can I raise the nanny's monthly salary to 3,000 yuan in order to pay more than 300 yuan of insurance for employees? What person can accept such a high nanny's salary?" Moreover, even if the enterprise is willing to give employees insurance, the employees have not seen to appreciate. Most workers who go out to work are not willing to give part of their wages to the city they will soon leave. For such employees, companies, under the requirements of the Labor Contract Law, need to do the work of their employees and convince them to agree to insurance. "Those who really don't want to be insured will sign a written contract to prove that the enterprise has already handed over to the employee the insurance they should pay." Tao Xiaoying said. Now, Shanghai has introduced a policy to subsidize insurance for service companies, precisely out of a desire to take care of the plight of such companies.
And on the "open-ended contract," the most headache for business owners, most companies are now taking a wait-and-see attitude, as Huawei's "letting employees resign and then re-sign the contract" to "circumvent" the "open-ended contract," said Tao Xiaoying, a senior executive at the company. The method of "letting employees resign and then re-sign the contract" as Huawei did to circumvent the "open-ended contract" has been stopped and declared invalid by the official order, and they said that the two timeframes of "the employee is about to serve for 10 years" and "the employee signs a fixed-term contract for the second time" will be abolished. They said that they would "repeatedly weigh" the two points of time "when an employee is about to serve for 10 years" and "when an employee signs a fixed-term contract for the second time", otherwise they "will have to keep the employee forever". Jeremy, chairman of Juli Precision Equipment Manufacturing (Dongguan) Co., Ltd. said, "We have a principle of doing business, can not hire those who can not be dismissed. Now the open-ended contract is not asking us to violate this? I will tell the HR department that people in their 40s and 50s should not be considered in future. Is this promoting employment or cutting it?"
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