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New Implementation Regulations for the Labor Contract Law - State Council 新劳动合同法实施条例颁布 - 国务院

December 10, 2008

Edward J. Epstein

Olivia Lee

Released on September 18, and effective as of the same date

These regulations clear up several issues arising from the Labor Contract Law, but remain silent on others that are debated among scholars, lawyers and HR managers.

Notably, the regulations clarify that:

  • the Labor Contract Law applies to partnerships and foundations;
  • seniority is not broken if an employee is assigned by his/her original employer to another one for reasons not attributable to the employee; and
  • local regulations in the place of actual work performance shall apply to the location where the employer is registered in connection with minimum wage, labor protection, working conditions and occupational hazards.

However, these regulations still do not address:

  • which “temporary, ancillary or dispensable” positions are eligible for labor secondment; and
  • which procedures employers should follow with regard to consulting with employees on company policies.

Lastly, the Implementation Regulations re-state that all legal grounds for employment termination are stipulated in the Labor Contract Law.

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