Global employment briefing: China, January 2018

• China

• Employment law

31-01-2018

For a detailed update on the issues summarized in this briefing, please click here.

Public holiday for 2018

The General Office of the State Council published the official national holiday and the adjusted holiday arrangement in China for 2018. The adjusted holiday arrangement permits switching nonworking days with working days to grant longer consecutive period of days off for the employees (most private companies also follows the adjusted holiday arrangement but they are not legally required to do so). For full details on holiday dates for 2018, click here.

Repeal of Document 481 on employee compensation

On 24 November 2017, the Ministry of Human Resources and Social Security repealed the Measures on Economic Compensation for Violating or Terminating of Employment Contracts 1994 (违反和解除劳动合同的经济补偿办法) (“Document 481”).

Document 481 was issued to provide detailed calculations on the economic compensation, including penalties for underpayment of labour compensation such as salary and overtime payment, statutory severance and medical subsidiary. It was partially superseded in 2008. On its repeal, it is unclear how statutory severance for services provided pre-2008 and medical subsidy will be calculated. It is suggested that local labour bureaus should be consulted.

China’s SAFEA implements changes to work authorisation policies to bring in more foreign talent

On 1 April 2017, the State Administration of Foreign Experts Affairs (the “SAFEA”) extended its new unified employment visa pilot scheme from selected regions such as Beijing, Shanghai and Guangdong to nationwide. The purpose of the new system is to streamline the work permit application process for foreigners and simplify the materials needed to attract high-level foreign talent to China. Click here to read the details and for reflections on using the system.

New guidance on the application of R Visa (for top talent)

On 28 November 2017, Implementation Measures regarding Foreign Talent Visa System (the “Implementation Measures”) was jointly promulgated by SAFEA, the Ministry of Foreign Affairs and the Ministry of Public Security to clarify application conditions and procedures for R Visa. Prior to this, there were no specific implementation guidance as to how R Visa(s) are to be applied. Click here to read further details.