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Interim Regulations for Labour Management in the E
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1986.01.21
SHANDONG PROVINCE
 INTERIM  REGULATIONS FOR LABOUR MANAGEMENT IN THE ECONOMIC AND
TECHNOLOGICAL DEVELOPMENT ZONE OF SHANDONG PROVINCE
 (Promulgated  on  January  21,  1986 by People's Government of
Shandong Province)
 @@  Article  1.  These Interim Regulations are formulated in the
light of specific  conditions  and  in  accordance  with  the
relevant laws and regulations of the People's Republic of China.
 @@  Article  2. Foreign citizens, overseas Chinese, compatriots in
Taiwan, Hong  Kong  and Macao and their companies, enterprises and
other economic entities  shall,  when establishing enterprises in
the  Development Zone (hereinafter  referred to as the Development
Zone enterprises), report for the record to the Labour Bureau of
the  cities  where they are located the labour  plans  of  the
enterprises which shall be determined by the board of directors of the
enterprises.
 @@ Article 3. The Development Zone enterprises shall implement the
labor contract  system  in  employing  the  staff and workers. The
labour contract shall include the following items: the term of the
contract; the employment, dismissal and resignation of the staff and
workers; the production of the work tasks; labour service charges and
provisions of awards and punishment; work schedules and holidays;
labour  insurance  and  welfare  benefits, labour protection  and
discipline and other rights and obligations agreed upon by the parties.
 The labour contract shall be signed by the enterprise with the labour
union of the enterprise or directly with each of the staff and workers,
and shall become  effective after the examination and approval by the
Labour Bureau of the city where the enterprise is located.
 @@  Article 4. The Labour Service Company shall be established
in the Development  Zone  to  aid  the enterprise recruiting and
training the staff and  workers, direct the staff and workers in
seeking employment, guide them in signing labour contracts with the
enterprise and centrally control the social labour insurance funds of
the staff and workers.
 @@  Article 5. The staff and workers to be employed by an enterprise
may be recruited  by  the  Labour Service Company on behalf of the
enterprise or by the  enterprise  itself under the approval by the
Labour Bureau of the city. The probation period for newly employed
staff and workers will be three to six months. Those qualified
shall  go through the procedures for regular membership through the
Labour Service Company.
 @@ Article 6. The staff and workers to be employed by the enterprise
shall be over at least sixteen years of age. Students may not be
employed.
 @@ Article 7. The Development Zone enterprise shall pay wages to the
staff and  workers on individual basis. The wage standards shall be
settled in the labour  contract  according  to the category of the
enterprise and the types of  work  in  production, and shall be
increased  annually in accordance with the  individual  technical
competence  and the beneficial result of the enterprise. The range
of increase shall be determined by the enterprise and the labour union
through consultation.
 The types of wages and the system of bonuses and subsidies for the
staff and  workers shall be determined by the enterprise itself and
be reported for the record to the Labour Bureau of the city where it is
located.
 @@  Article  8. The Development Zone enterprise and its staff and
workers shall  pay  monthly social labour insurance funds to the
Labour Service Company respectively at 25% of the total amount of
wages of its Chinese staff  and  workers and at 2% of their wages
during the contract period. The funds shall be paid before the fifth
day of the following month. In case of failure  to  do so, a
surcharge  for  overdue  payment equal to 1% of the payable amount
shall be imposed for every day in arrears.
 The  social  labour insurance funds shall be used for the staff and
workers for  the following purposes: retirement pays, medical fees
after retirement, funeral expenses, pension for the disabled and the
deceased,  relief funds and subsidies for living expenses before
reemployment after dismissal.
 @@  Article  9.  The staff and workers of the enterprise have the
right to establish labour union in accordance with Chinese laws, to
organize union activities and to protect their rights and interests.
The enterprise shall support the work of the labour union and allot
money  as the union's funds in  accordance  with  the pertinent
regulations. The union shall support the proper business activities
of  the  enterprise  and educate the staff and workers to observe

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