(6) Other circumstances as prescribed in laws or administrative regulations occur.

Article 45 Where a labor contract expires, if it is under any of the circumstances as prescribed in Article 42 of this Law, the term of labor contract shall be correspondingly extended to the time when the relevant circumstance disappears. However, the issues concerning termination of the labor contract of a worker who has lost or partially lost his capacity to work as prescribed in Subparagraph (2) of Article 42 of this Law shall be handled under the relevant provisions regarding occupational injury insurance.

Article 46 In the case of any of the following circumstances, employers shall make an economic compensation to the workers:

(1) Any worker cancels the labor contract according to Article 38 of this Law;

(2) Any employer intends to cancel the labor contract with the worker according to Article 36 of this Law and reaches consensus with the worker by consultation;

(3) The employer cancels the labor contract pursuant to Article 40 of this Law;

(4) The employer cancels the labor contract subject to the Paragraph 1 of Article 41 of this Law;

(5) The labor contract is a contract with a fixed period, which is terminated in accordance with Paragraph 1 of Article 44 of this Law, except that the worker disagrees to renew the contract even though the conditions offered by the employer are the same as or better than those stipulated in the current contract;

(6) The labor contract is terminated in accordance with Subparagraphs (4) and (5) of Article 44 of this Law; or

(7) Other circumstances as prescribed by laws and administrative regulations.

Article 47 The economic compensation shall be paid to workers according to the number of years he has worked for the employer by the rate of one month'S salary for each full year he worked. Any period of above six months but less than one year shall be deemed as one year. The economic compensations that are paid to a worker for any period of less than six months shall be half of his monthly salary.

If the monthly salary of a worker is more than three times higher than the average monthly salary of workers as announced in the previous year by the people'S government at the municipal level directly under the Central Government or at the level of districted city where the entity is situated, the rate for the economic compensations paid to him shall be three times the average monthly salary of workers and the period subject to compensation may not exceed 12 years.

Monthly salary as mentioned in this Article means the average monthly salary of the worker for the 12 months before cancellation or termination of the labor contract thereof.

Article 48 In the case of any employer cancels or terminates a labor contract that violates this Law, if any worker requests for continual performance of the contract, the employer shall do so as required. If the worker does not request so or continual performance of the labor contract is impossible, the employer shall pay damages to the worker in accordance with Article 87 of this Law.

Article 49 The state shall adopt relevant measures to establish and perfect a system which ensures that the workers?social security relationship can be transferred from one region to another and can be continued in other regions.

Article 50 When canceling or terminating a labor contract, the employer shall issue a certification for the cancellation or termination of the labor contract simultaneously and shall complete the procedures for the transfer of the worker'S archives and social security relationship within 15 days.

The worker shall go through the procedures for the handover of his work as stipulated between both parties. In case the employer shall pay an economic compensation to the worker as required by relevant provisions of this Law, it shall make a payment upon completion of the procedures for the handover of the work.

The text of the cancelled or terminated labor contracts shall be preserved by the employer for at least two years for reference.

Chapter V Special Rules

Section 1 Collective Contracts

Article 51 The enterprise workers, as one party, may conclude a collective contract with the employer in terms of remuneration, working hours, rest and vacation, work safety and healthy care, social insurance and welfare, etc. upon equal consultation. The draft of the collective contract shall be presented to workers?congress or all the workers for discussion and approval.

A collective contract shall be concluded between the labor union that is on behalf of the enterprise workers and the employer. In case of any employer that may not have a labor union yet, the contract shall be concluded between the employer and the representatives as chosen by the workers upon the guidance of the labor union at the next higher level.

Article 52 The enterprise workers, as one party, may conclude specialized collective contracts with the employer with respect to the work safety and sanitation, protection of the rights and interests of female workers, the salary adjustment mechanism, etc.

Article 53 In regions of county level or below, the labor unions may conclude industrial or regional collective contracts with the representatives of enterprises in such industries as construction, mining, catering services, etc.

Article 54 After the conclusion of a collective contract, it shall be submitted to the labor administrative department. Where the labor administrative department raises no objection within 15 days as of the receipt of the collective contract, the collective contract shall become effective.

A collective contract that has been concluded according to law is binding upon both the employers and the workers. An industrial or regional collective contract is binding upon both the employers and workers in the industry or in the region.

Article 55 Such standards as remunerations, working conditions, etc. as prescribed in a collective contract shall not be lower than the minimum standards as prescribed by the local people'S government. The standards such as remunerations, working conditions, etc. as prescribed in the labor contract between an employer and a worker shall not be lower than those as prescribed in the collective contract.

Article 56 In case an employer breaches the collective contract and infringes upon the labor rights and interests of the workers, the labor union may demand the employer to bear the liability according to law. Where any dispute arises from the performance of the collective contract and no agreement is reached upon consultation, the labor union may apply for arbitration or bring a lawsuit according to law.

Section 2 Labor Dispatch

Article 57 Labor dispatch service providers shall be established as prescribed by the Company Law and have registered capital of no less than 500,000 yuan.

Article 58 Labor dispatch service providers are employers as mentioned in this Law and shall perform obligations toward workers. The labor contract between a labor dispatch service provider and a worker to be dispatched shall specify the issues as prescribed in Article 17 of this Law, and shall also indicate issues such as the entity to which the worker will be dispatched, the dispatched term, post, etc.

The labor contract between the labor dispatch service provider and the dispatched workers shall be a labor contract with a fixed term of more than two years, and the remunerations thereof shall be paid by the labor dispatch service provider on a monthly basis. During periods when there is no work for the workers, relevant remunerations shall be paid to such workers by the labor dispatch service provider on a monthly basis at the minimum salary as prescribed by the people'S government of the region where the labor dispatch service provider is situated.

Article 59 When dispatching workers, a labor dispatch service provider shall conclude a labor dispatch agreement with the entity that accepts the workers in a labor dispatch manner (hereinafter referred to as the accepting entity). Relevant issues shall be stipulated in the dispatch agreement regarding the posts for dispatched workers, the number of dispatched workers, the term of dispatch, the amount and payment of remunerations and social security premiums, and the liability for breach of agreement.

An accepting entity shall determine the term of dispatch with the labor service dispatch provider in light of the actual requirements of the posts, and shall not divide a continuous term of labor use into a couple of short-term dispatch agreements.

Article 60 A labor dispatch service provider shall notify the dispatched workers concerning the content of the dispatch agreements.

No labor dispatch service provider may withhold any remuneration that is paid to the workers by the accepting entity under the dispatch agreement.

No labor dispatch service provider or accepting entity may charge any fee against any dispatched workers.

Article 61 Where a labor dispatch service provider designates a worker to an accepting entity in another region, the worker'S remuneration and working conditions shall be subject to relevant standards of the location where the accepting entity is situated.

Article 62 The following obligations shall be performed by an accepting entity:

(1) Carrying out labor standards of the state and providing relevant working conditions and labor protection;

(2) Informing the dispatched workers of job requirements and labor remuneration;

(3) Paying overtime remunerations and performance bonuses and providing benefits relevant to the post;

(4) Providing the dispatched workers who assume the posts with corresponding training as required; and

(5) Adopting a normal salary adjustment system in the case of continuous placement.

No accepting entity may reassign the dispatched workers to any other employer.

Article 63 The dispatched workers shall enjoy the right to obtain the same pay as that received by workers of the accepting entity for the equal work. In case there is no worker in the same post in the accepting entity, the remunerations thereof shall be determined by referring to the payment in the place where the accepting entity is situated to workers at the same or a similar post.

Article 64 The dispatched workers are entitled to join the labor union or to organize such unions in the labor dispatch service provider or in the accepting entity according to law, in order to safeguard their lawful rights and interests.

Article 65 A dispatched worker may cancel the labor contract with the labor dispatch service provider as prescribed in Articles 36 and 38 of this Law.

Where a dispatched worker is under any of the circumstances as mentioned in Article 39 and Subparagraphs (1) and (2) of Article 40, the accepting entity may return the worker back to the labor dispatch service provider, and the labor dispatch service provider may cancel the labor contract thereof as prescribed in this Law.

Article 66 The dispatched workers shall assume the temporary, assistant or substitute posts in general.

Article 67 No accepting entity may establish a labor dispatch service provider to dispatch workers to itself or its subordinates.

Section 3 Non-Full-Time Labor

Article 68 Non-full-time labor refers to a form of labor for which the remuneration is generally calculated on hourly basis, the average working hours of a worker per day shall not be more than four hours and the cumulative working hours per week for the same employer shall not be more than 24 hours.

Article 69 Both parties related to non-full-time labor may conclude an oral agreement.

Any worker that conducts non-full-time labor may conclude labor contracts with one employer or more, but no labor contract concluded later may influence the performance of the labor contract concluded previously.

Article 70 No probation period may be stipulated for non-full-time labor by both parties.

Article 71 Either of the parties related to non-full-time labor may notify the other party to terminate the labor at any time. When terminating any non-full-time labor, the employer shall pay no economic compensation to the worker.

Article 72 The standards for the remuneration for non-full-time labor on hourly basis shall be no less than the minimum hourly salary rates as prescribed by the people'S government of the region where the employer is situated.

The period of remuneration settlement and payment for non-full-time labor shall not be more than 15 days.

Chapter VI Supervison and Inspection

Article 73 The labor administrative department of the State Council shall have the responsibility of the surveillance and inspection on the implementation of the labor contracts system all over the country.

The labor administrative departments of the local people'S governments at or above the county level shall have the responsibility of surveillance and inspection on the implementation of the labor contracts system within their administrative areas respectively.

During the surveillance and inspection on the implementation of the labor contracts system, the labor competent authorities of the people'S governments at or above the county level shall consult the labor unions, enterprise representatives and relevant industrial competent authorities.

Article 74 The labor administrative departments of the local people'S governments at or above the county level shall perform surveillance and inspection on the following implementation of the labor contract system according to laws:

(1) The employers?constitution of bylaws and regulations in direct relation to the interests of workers, and the implementation conditions thereof;

(2) The conclusion and cancellation of labor contracts by employers and workers;

(3) The abidance by relevant regulations concerning labor dispatch by labor dispatch service providers and the accepting entities;

(4) The employers?abidance by provisions of the state regarding working hours, rest and vacation of the workers;

(5) The employers?payment for remuneration as specified in the labor contracts and abidance by the minimum salary standards;

(6) The employers?participation in the social insurance and payment for social insurance premiums; and

(7) Other labor surveillance issues as prescribed by relevant laws and regulations.

Article 75 When conducting the surveillance and inspection, the labor administrative department of the people'S government at or above the county level is entitled to consult relevant materials with respect to the labor contracts and collective contracts and it has the rights to carry out spot inspections on the work places. The employers and workers shall provide relevant information and materials faithfully.

When performing an inspection, the functionaries of the labor administrative department shall show the certificates, exercise their powers according to laws and enforce the law in a courteous way.

Article 76 The relevant competent authorities of construction, sanitary, work safety surveillance and administration, etc. of the people'S governments at or above the county level shall surveil and administer the employers?implementation of the labor contracts system under their respective responsibilities.

Article 77 With respect to any worker whose lawful rights and interests is infringed, he is entitled to require the relevant department to deal with the case, or apply for an arbitration or bring a lawsuit according to law.

Article 78 A labor union shall maintain the workers?legitimate rights and interests in accordance with relevant law and surveil the employer'S performance of the labor contracts and collective contracts. In the case of any violation of any law or regulation or any breach of labor contract or collective contract by any employer, the labor union has the rights to bring forward opinions and require this employer to make a correction. Where the worker applies for arbitration or brings a lawsuit, the labor union shall support and assist him according to law.

Article 79 Any organization or individual has the right to report any violations of this Law. The labor competent authorities of the people'S governments at or above the county level shall timely verify and handle such violations and shall grant awards to the person worthy of merit in reporting the violations.

Chapter VII Legal Liabilities

Article 80 In case an employer'S bylaws in direct relation to the workers?interests are inconsistent with any law or regulation, it shall be order to make a correction by the labor administration department and shall be given a warning. If any damage occurs to the workers by the aforesaid bylaws, the employer shall assume the liability for compensation.

Article 81 If a labor contract provided by an employer fails to specify any of the mandatory clauses as requires to be contained in such contracts by this Law or if an employer fails to deliver the document of the labor contract to the worker, it shall be ordered to make a correction by the labor administration department. If any damage occurs to the worker, the employer shall assume the liability for compensation.

Article 82 If an employer fails to conclude a labor contract in written form with a worker in more than one month but less than one year after the date of starting to use him, it shall pay the worker double amount of his salary every month.

If an employer fails to conclude a labor contract without a fixed period with a worker against this Law, it shall pay the worker double amount of his salary every month, starting from the date on which a labor contract without a fixed period should have been concluded.

Article 83 If any employer stipulates the probation period with any worker in violations of this Law, it shall be ordered to make a correction by the labor administration department. If the illegally stipulated probation has been performed, the worker shall be paid compensation by the employer in light of the time worked on probation beyond the statutory probation period, at the rate of the worker'S monthly salary after probation.

Article 84 Where an employer violates this Law due to detaining any worker'S identity card or other certificates, it shall be ordered by the labor administrative department to return the aforesaid certificates to the worker within a time limit and shall be punished according to law.

Where an employer is in violation of this Law due to collecting property from workers in form of guaranty or in any other excuse, it shall be ordered by the labor administrative department to return the aforesaid property to the workers within a time limit and shall be imposed upon a fine of no less than 500 yuan but not more than 2,000 yuan for each person. If any damage occurs to the workers, the employer shall bear the liability for compensation.

In the case of any lawful cancellation or termination of the labor contract by a worker, if the employer retains the archives or other articles of the worker, it shall be punished under the provisions of the preceding paragraph.

Article 85 In the case of any of the following circumstances occurring to any employer, it shall be ordered by the labor administrative department to pay the remunerations, overtime remunerations or economic compensations within a time limit. If the remuneration is lower than the local minimum salary, the employer shall pay the shortfall. If payment is not made within the time limit, the employer shall be ordered to pay an extra compensation to the worker at a rate of not less than 50 percent and not more than 100 percent of the payable amount:

(1) It fails to timely pay a worker full remunerations as stipulated in the labor contract or prescribed by the state;

(2) It pays a worker the salary that is lower than the local minimum salary;

(3) It arranges overtime work but does not pay overtime remunerations; or

(4) It cancels or terminates a labor contract without paying the worker the economic compensation in accordance with this Law.

Article 86 Where a labor contract has been confirmed as invalid in accordance with Article 26 of this Law, if any damage occurs to the other party, the party at fault shall be liable for compensation.

Article 87 Where any employer cancels or terminates the labor contract in violation of this Law, a compensation shall be paid to the worker at the rate of twice of the economic compensations as prescribed in Article 47 of this Law.

Article 88 In the case of any of the following circumstances, an employer shall be given an administrative punishment. If any crime is constituted, it shall be investigated for criminal liabilities. If any damage occurs to the worker, the employer shall bear the liability for compensation:

(1) Forcing the worker to work by way of violence, threat or illegal limitation of personal freedom;

(2) Illegally directing or ordering any worker to conduct dangerous operations that may imperil the worker'S personal safety;

(3) Affronting, physically punishing, beating, illegally searching or detaining any worker; or

(4) Providing bad working conditions or a seriously polluted environment, leading to severe damages to the physical or mental health of workers.

Article 89 Where any employer is in violation of this Law because of failing to issue a certificate in written form for the cancellation or termination of a labor contract to a worker, the labor administrative department shall order it to make a correction. If any damage occurs to the worker, it shall bear the liability for compensation.

Article 90 With respect to any worker cancels the labor contract in violation of this Law, or is in violation of relevant stipulations of the labor contract concerning the confidentiality obligation or non-competition, he shall bear the liability for compensation if any loss occurs to the employer.

Article 91 Where any employer hires a worker that has not cancelled or terminated a labor contract with other employer, if any loss occurs to the former employer, the new employer shall bear joint liability of compensation.

Article 92 In case any labor dispatch service provider is in violation of this Law, the labor administrative department and other relevant competent authorities shall order it to make a correction. In the case of any severe circumstances, it shall be imposed a fine of not less than 1,000 but not more than 5,000 per person and its business license shall be revoked by the administrative department for industry and commerce. If any damage occurs to the dispatched workers, the labor dispatch service provider and the accepting entity shall be jointly liable for compensation.

Article 93 In the case of any committed violation or crime by an employer without lawful business operation qualifications, it shall be investigated for legal liabilities. If the workers have already worked for the employer, the employer or its capital contributors shall pay the workers remunerations, economic compensations or indemnities as prescribed in this Law. If any damage occurs to the worker, they shall bear the liability for compensation.

Article 94 In case any worker is hired by an individual as a business operation contractor in violation of this Law, if any damage occurs to the worker, the contract-letting organization and the individual business operation contractor shall bear joint liability for compensation.

Article 95 Where the labor administrative department, other relevant administrative department, or any of the personnel thereof neglects its/his duties, fails perform the statutory duties or exercises its/his powers in violation of law, if any damage occurs to the worker or the employer, it/he shall bear the liability for compensation. The directly liable principal and other directly liable persons shall be given an administrative sanction. In the case of any constituted crime, they shall be investigated for criminal liabilities.

Chapter VIII Supplementary Rules

Article 96 With respect to any conclusion, performance, alteration, cancellation or termination of labor contract between a public institution and a worker under the labor system, it shall be subject to this Law, except that it is otherwise prescribed by any law, administrative regulation or by the State Council.

Article 97 With respect to any labor contract that has been concluded before the implementation of this Law and continues to exist on the implementation date of this Law, it shall be kept on performing. According to Subparagraph (3) of the Paragraph 2 of Article 14 of this Law, the number of consecutive times on which a labor contract with a fixed period is concluded shall be calculated from the first renewal of such contract after the implementation of this Law.

If a labor relationship has been established before the implementation of this Law without concluding a labor contract in written form, the aforesaid contract shall be concluded within one month as of the date on which this Law comes into force.

Where a labor contract that exists on the implementation date of this Law is cancelled or terminated after the implementation of this Law, if any economic compensation shall be paid to the worker under Article 46 of this Law, the number of years for which the economic compensation is payable shall be calculated from the implementation date of this Law. If an employer shall pay economic compensation to a worker under relevant effective regulations before the implementation of this Law, it shall be handled subject to the relevant effective regulations at that time.

Article 98 This Law shall enter into force as of January 1, 2008. n

(Not the official translation. Source: www.fdi.gov.cn)