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Guangdong Prohibits Fines or Salary Deduction as Disciplinary Measures

  • China
  • Employment law - HR E-Brief


New regulations on the supervision of labour security came into force in Guangdong Province 1 May 2013 (the “Regulations”). The Regulations expressly prohibit fines or salary deduction as a means of labour discipline in a company’s internal rules and regulations.

In case of violation, companies may be ordered to amend its internal rules and regulations by labour administration, make rectification, i.e., refund the fine or salary deduction or even be fined.

Eversheds Comments:

In general, fines or salary deduction may not be used as a means of labour discipline following the abolition of their legislative basis in 2008. Companies should check their internal rules and regulations and amend their employee handbooks accordingly, implementing only legal content and following the required procedures.