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Regulations on Labour Management for Foreign Inves
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1987.03.07
JIANGSU PROVINCE
  REGULATIONS  ON  LABOR  MANAGEMENT  FOR  FOREIGN  INVESTMENT
ENTERPRISES IN JIANGSU PROVINCE
 (Adopted  at  the 24th Session of the Standing Committee of the 6th
Jiangsu Provincial  People's  Congress  on  February 21, 1987 and
promulgated by the Standing Committee of Jiangsu Provincial People's
Congress on March 7)
  @@  Article  1.  The  present  Regulations are formulated in
accordance with the  "Law of the People's Republic of China on Joint
Ventures Using Chinese and  Foreign  Investment",  the  "Law  of
People's  Republic  of  China on Enterprises  Operated Exclusively
with  Foreign  Investment",  and  other  relevant  laws  and
regulations  of the State, with respect to the specific environment of
jiangsu province.
 @@  Article  2.  The  labor  management  departments  of the
provincial, municipal  and  county  people's governments shall be
the institutions to administer the labor management provisions over
those  Sino-foreign  equity  and   non-equity   joint   venture
enterprises  and  wholly  foreign-owned enterprises  (hereinafter
refer to as the foreign investment enterprise) in the province.
 @@ Article 3. Staff and workers of the foreign investment enterprise
shall have  the  rights  to establish trade unions and organize
activities in accordance with the relevant trade union laws of the
State.  The  foreign  investment  enterprise  shall  provide  the
necessary conditions for trade unions' activities.
 @@  Article  4. The foreign investment enterprise may determine on
its  own its labor plans, organizational structure and personnel
requirements.
 @@  Article  5.  The  foreign investment enterprise may, with the
assistance of  the  local labor and personnel management department,
recruit  and employ staff  and  workers  on its own through an
examination and selection process in which only the qualified are to be
hired.
 In  the  event  that  the  required  engineering  and technical
personnel or business  management  personnel  are  not  available
locally,  the  foreign investment enterprise concerned may recruit
from other localities after consent  from  the labor and personnel
management department of the locality concerned has been obtained
through  the  good  office  of the labor and personnel management
department  of the municipality or province where the enterprise is
located.
 With  respect  to  the  staff  and  workers whom the foreign
investment enterprise  has  decided to hire after examination, the
original  units where such  personnel  are  in  employment shall
actively support and permit their transfer to their new employment.
In  the  event that dispute arises, the labor  and  personnel
management department in their locality shall adjudicate.
 @@  Article  6. In the event that an equity or a non-equity joint
venture is established between a local enterprise and a foreign
party, staff and workers of the original local enterprise who are
not employed by the new joint venture enterprise shall be assigned
other work by the Chinese party. Other re-employment arrangements
shall be made by the authorities in charge of the local enterprise or
by the labor and personnel management department in the locality if
the  local  enterprise  has  indeed  difficulties in making such
arrangements.
  @@  Article  7.  The  foreign  investment  enterprise  shall
implement (the prevailing) labor contract system (when it is employing
staff and workers). The contracts shall be signed between the foreign
investment enterprise and the employee individually or the trade union
collectively.
 A  labor  contract  shall include the terms on the employment,
dismissal and resignation of staff and workers, their production or
job  responsibility,  wages,  awards  and  punishments,  working
schedules  and  holidays,  labor insurance  and  welfare,  labor
protection  and labor discipline, duration of the  contract, the
condition for alterating or terminating the contract, the obligations
for  breach  of  contract, and other items of which both sides agree
to be covered.
 @@  Article  8.  The foreign investment enterprise may, within the
duration of  the  labor  contract, dismiss staff or workers who have
become redundant as  a result of a significant change in production
operation, or technology, or in accordance with the dismissal clauses
stated in the labor contract. A notice concerning the dismissal
shall be given to the to-be-dismissed employee one month in advance.
  The  foreign  investment  enterprise  shall  compensate  the
above-mentioned staff  or worker who is dismissed

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