compensation and working conditions shall be in line with the rates and standards of the place where the Accepting Unit is located. Article 62
Accepting Units shall perform the following obligations:
(1) Implement state labor standards and provide the corresponding working conditions and labor protection;
(2) communicate the job requirements and labor compensation of the Employees placed;
(3) Pay overtime pay and performance bonuses and provide benefits appropriate for the job positions; (4) Provide the placed Employees who are on the job with the training necessary for their job positions; and
(5) In case of continuous placement, implement a normal wage adjustment system. Accepting Units may not in turn place the Employees with other Employers. Article 63
Placed Employees shall have the right to receive the same pay as that received by Employees of the Accepting Unit for the same work. If an Accepting Unit has no Employee in the same position, the labor compensation shall be determined with reference to the labor compensation paid in the place where the Accepting Unit is located to Employees in the same or a similar position. Article 64
Placed Employees have the right to lawfully join the Trade union of their staffing firm or the Accepting Unit or to organize such unions, so as to protect their own lawful rights and interests. Article 65
Placed Employees may terminate their employment contracts with their staffing firms pursuant to Article 36 or 38 hereof.
If any of the circumstances provided for in Article 39 and items (1) and (2) of Article 40 hereof applies to a placed Employee, his Accepting Unit may return him to the staffing firm, which may terminate its employment contract with him in accordance with the relevant provisions of this Law. Article 66
The placement of Employees shall generally be practiced for temporary, auxiliary or substitute job positions. Article 67
Employers may not establish staffing firms to place Employees with themselves or their subordinate units.
Section 3 Part-Time Labor Article 68
The term “part-time labor” means a form of labor for which the compensation is chiefly calculated by the hour and where the Employee generally averages not more than 4 hours of work per day and not more than an aggregate 24 hours of work per week for the same Employer. Article 69
The two parties to part-time labor may conclude an oral agreement.
A Employee who engages in part-time labor may conclude an employment contract with one or more Employers, but a subsequently concluded employment contract may not prejudice the performance of a previously concluded employment contract. Article 70
The two parties to part-time labor may not stipulate a probation period. Article 71
Either of the two parties to part-time labor may terminate the use of the labor by notice to the other party at any time. No severance pay shall be payable by the Employer to the Employee upon termination of the use of the labor. Article 72
The hourly compensation rate for part-time labor may not be lower than the minimum hourly wage rate prescribed by the People’s Government of the place where the Employer is located.
The labor compensation settlement and payment cycle for part-time labor may not exceed 15 days.
CHAPTER 6 MONITORING INSPECTIONS Article 73
The State Council’s labor administration authority shall be responsible for overseeing the implementation of the employment contract system nationwide. The labor administration authorities of local People’s Governments at the county level and above shall be responsible for overseeing the implementation of the employment contract system in their respective jurisdictions.
In the course of overseeing the implementation of the employment contract system, the labor
administration authorities of People’s Governments at the county level and above shall consider the opinions of the Trade unions, the representatives on the side of the enterprises and the authorities in charge of the industries concerned. Article 74
The labor administration authorities of local People’s Governments at the county level and above shall conduct monitoring inspections of the implementation of the following aspects of the employment contract system, in accordance with the law:
(1) Employers’ formulation of rules and regulations that have a direct bearing on the immediate interests of Employees, and the implementation thereof;
(2) The conclusion and termination of employment contracts by Employers and Employees; (3) Compliance with relevant regulations on placement by staffing firms and Accepting Units; (4) Employers’ compliance with state regulations on Employees’ working hours, rest and leave; (5) Employers’ payment of labor compensation as specified in the employment contracts and compliance with minimum wage rates;
(6) Employers’ enrollment in the various types of social insurance and payment of social insurance premiums; and
(7) Other labor matters requiring monitoring inspections, as specified in laws and administrative statutes. Article 75
When the labor administration authority of a local People’s Government at the county level or above conducts a monitoring inspection, it has the authority to review materials relating to the employment contracts and collective contracts and conduct an on the-spot inspection of the work premises. Both the Employer and the Employees shall truthfully provide relevant information and materials.
When working personnel of a labor administration authority conduct a monitoring inspection, they shall show their IDs, exercise their functions and powers according to law and enforce the law in a well-disciplined manner. Article 76
Such competent authorities as construction authorities, health authorities, production safety regulators, etc. of People’s Governments at the county level and above shall, to the extent of their respective purviews, oversee the implementation of the employment contract system by Employers. Article 77
A Employee whose lawful rights and interests have been infringed upon shall have the right to request that the relevant authority deal with the infringement according to law, or to apply for arbitration and institute an action according to law. Article 78
Trade unions shall safeguard the lawful rights and interests of Employees in accordance with the law and monitor the performance of the employment contracts and collective contracts by Employers. If an Employer violates labor laws or statutes or breaches an employment contract or collective contract, the Trade union has the right to voice its opinion or require that the matter be rectified. If a Employee applies for arbitration or institutes an action, the Trade union shall provide support and assistance in accordance with the law. Article 79
All organizations and individuals are entitled to report violations of this Law.
The labor administration authorities of People’s Governments at the county level and above shall timely check and handle the violations reported and reward those persons whose reports are valuable.
CHAPTER 7 LEGAL LIABILITY Article 80
If an Employer’s rule or regulation with a direct bearing on the immediate interests of Employees violates laws or administrative statutes, the labor administration authority shall order rectification and give a warning. If the said rule or regulation caused a Employee to suffer harm, the Employer will be liable for damages. Article 81
If the text of an employment contract provided by an Employer lacks any of the mandatory clauses which this Law requires to be included in such contracts or if an Employer fails to deliver the text of the employment contract to the Employee, the labor administration authority shall order rectification; if the Employee suffered harm as a result thereof, the Employer will be liable for damages. Article 82
If an Employer concludes a written employment contract with a Employee more than one month but less than one year after the date on which it started using him, it shall each month pay to the Employee twice his wage.
If an Employer fails, in violation of this Law, to conclude an open-ended employment contract with a Employee, it shall each month pay to the Employee twice his wage, starting from the date on which an open-ended employment contract should have been concluded. Article 83
If the probation period stipulated by an Employer with a Employee violates this Law, the labor administration authority shall order rectification. If the illegally stipulated probation has been performed, the Employer shall pay compensation to the Employee according to the time worked on probation beyond the statutory probation period, at the rate of the Employee’s monthly wage following the completion of his probation. Article 84
If an Employer violates this Law by retaining a Employee’s resident ID card or other papers, the labor administration authority shall order the same returned to the Employee within a specified period of time and impose a penalty in accordance with the provisions of relevant laws.
If an Employer violates this Law by collection property from Employees as security or under some other guise, the labor administration authority shall order the same returned to the Employees within a specified period of time and impose a fine on the Employer of not less than RMB￥500 and not more than RMB￥2,000 for each person; If the Employees suffered harm as a result of the said conduct on the part of the Employer, the Employer will be liable for damages. If an Employer retains a Employee’s file or other Article after the Employee has terminated or ended his employment contract in accordance with the law, a penalty shall be imposed in accordance with the preceding paragraph. Article 85 If an Employer:
(1) Fails to pay a Employee his labor compensation in full and on time as stipulated in his employment contract or prescribed by the state;
(2) Pays labor compensation below the local minimum wage rate; (3) Arranges overtime without paying overtime pay; or
(4) Terminates or ends an employment contract without paying the Employee severance pay pursuant to this Law; then the labor administration authority shall order it to pay the labor compensation, overtime pay or severance pay within a specified period of time; if the labor compensation is lower than the local minimum wage rate, the Employer shall pay the shortfall. If payment is not made within the time limit, the