Regulations of Jiangsu Province on Labor Contracts
Announcement of the Standing Committee of Peoples’ Congress of Jiangsu Province
No.124
Regulations of Jiangsu Province on Labor Contracts, revised and adopted at the Thirty-second Meeting of the Standing Committee of the Eleventh People’s Congress of Jiangsu Province on January 15, 2013, are hereby promulgated and shall enter into effect as of May 1, 2013.
The Standing Committee of the People’s Congress of Jiangsu Province
Regulations of Jiangsu Province on Labor Contracts
(Adopted at the Sixth Meeting of the Standing Committee of the Tenth People’s Congress of Jiangsu Province on October 25, 2003; revised at the Thirty-second Meeting of the Standing Committee of the Eleventh People’s Congress of Jiangsu Province on January 15, 2013)
Chapter I General Provisions
Article 1 These Regulations are enacted in accordance with the Labor Law of the People’s Republic of China, the Labor Contract Law of the People’s Republic of China and The Regulation on the Implementation of the Labor Contract Law of the People"s Republic of China, and other relevant laws and administrative regulations, in light of the specific situation of this Province, and for the purposes of improving the labor contract regulations, specifying the rights and obligations of both parties to the labor contracts, safeguarding the legitimate rights and interests of the workers, standardizing the administration of labor use, and constructing and developing a harmonious and steady employment relationship.
Article 2 These Regulations shall apply to the establishment of employment relationship between enterprises, individual economic organizations, non-enterprise private entities and other entities (hereinafter referred to as the employers) and the workers thereof, as well as the conclusion, performance, alteration, discharge or termination of labor contracts there between.
Organizations such as foundations, accountant firms and law firms founded according to laws shall be included into the employers referred to in the previous paragraph.
These Regulations shall also apply to state organs, public institutions, social organizations and workers bound up by labor contracts concerning the conclusion, performance, alteration, discharge or termination of labor contracts.
Article 3 The labor contract is the agreement reached by the worker and the employer to clarify the rights and duties of the two parties of employment relationship.
Where an employer establishes employment relationship with a worker, a labor contract in a written form shall be concluded.
Article 4 Employers shall ensure workers’ dignity, safety and health and their rights to gain remuneration, participate in democratic management, etc., and shall not disclaim their legal liability, enhance the workers’ obligation or deny workers" rights by formulating bylaws.
Workers shall abide by the bylaws stipulated by the employer according to law, perform the rights and duties according to the provisions of labor laws and regulations, agreement of collective contracts and labor contracts, and shall not impair the legal rights of employers.
Where employers formulate, revise or decide the bylaws and important matters in direct relation to the vital interests of workers, they shall actively and authentically inform workers, or publicize them in such forms as bulletin boards, written texts, emails, the website of the unit, which are convenient for workers to know.
Article 5 The local people’s government at or above the county level shall regard maintaining and promoting harmonious and steady employment relationship as their major duties, widely solicit opinions from employers, workers or the labor union and relevant delegate organizations of employers, research and formulate policies and measures related to employment relationship.
Article 6 The labor administrative department of the local people’s government at or above the county level shall be responsible for guidance, coordination, administration, supervision and inspection of the implementation of the labor contract regulations within its administrative region, coordinate employment relationship according to law and properly deal with labor disputes.
Public service organizations of employment and social security at the grass-roots level shall assist in relevant work on implementation of the labor contract regulations within its administrative region.
Article 7 The labor administrative department of the local people’s government at or above the county level shall set up a committee for coordinating labor relationship in collaboration with the labor union and delegate organizations of employers, and coordinate to deal with major issues in labor relationship.
Article 8 The labor union shall safeguard workers’ legitimate rights and interests in accordance with relevant laws and surveil the employer’s performance on following labor laws and regulations, formulating labor bylaws, and carrying out labor contracts and collective contracts, etc.
Article 9 The Communist Youth League, Women’s Federation, Federation of the Disable People and other social groups shall promote fair employment, discard employment discrimination, and safeguard employees’ legal rights and interests.
Article 10 The local people’s government at or above the county level shall reward the employers and individuals that abide by labor laws and regulations, and construct a harmonious labor relationship.
Chapter II Conclusion of Labor Contracts
Article 11 When hiring workers, the employer shall faithfully notify them of job contents, position requirements, working time and place, remuneration, occupational hazard, working conditions, etc. related to labor contracts. For positions which may cause occupational disease, it shall notify them of the preventative measures against and treatment of occupational disease, and clarify them in the labor contract.
The workers shall authentically provide information in direct relation to labor contracts such as employment status, health conditions, business strife limitation,and authentically provide certificates such as their residential identification, academic degrees, work experiences, professional skills as required by the employer.
Article 12 A labor contract shall be concluded upon unanimity through consultation between the employer and the worker, and it shall become effective upon the signatures or seals on the text of the labor contract by the employer and the worker.
Where a labor contract uses texts in Chinese and other languages at the same time, the contents shall be consistent; where the contents are inconsistent, the contract in Chinese shall prevail.
The employer and the worker shall hold one copy of the text of the labor contract respectively. The employer shall deliver the text to the worker within five working days since the conclusion of the labor contract and shall not detain it.
Article 13 The employer establishes labor relationship with the worker as of the date when the worker starts to work for the employer.
Where an employer arranges the worker to participate in pre-post training and learning, labor relationship shall be established as of the date when the worker starts to participate.
Article 14 Where the worker on an extended break due to production suspension of the enterprise, the worker who fails to reach the statutory retirement age but leaves the post to recuperate, and other workers who do not assume the post but sustain the employment relationship through consultation, when they establish employment relationship with a new employer to conduct a full-time job, they shall inform the new employer of the reserved employment relationship with the former employer. Both parties shall conclude a written labor contract, but may stipulate exceptional provisions on the conclusion of the labor contract without fixed period, and on the payment for economic compensation.
Article 15 The probation period shall be contained in the term of labor contracts.
Where the worker who falls ill or gets injured for a non-work-related reason needs to stop work for medical treatment during the probation, the probation shall be suspended within the medical treatment period as prescribed.
Article 16 Where the labor contract has expired and the employer fails to renew the labor contract with the worker, but the worker continues to work for the employer, the employer shall renew the written labor contract with the worker within one month. Where the worker refuses to renew the labor contract with the employer after receiving the written notification from the employer, the employer shall inform the worker of the termination of the employment relationship in a written form.
In case any employer fails to sign a labor contract in a written form with the worker after the extension of one full year as of the date of employing him but the worker still works for the employer, it shall be regarded that the employer and the worker has concluded a labor contract without a fixed period.
Article 17 In case a labor contract is automatically extended after it expires, as agreed by the employer and the worker, it shall be regarded that both parties conclude the labor contract continuously.
Where the term of a labor contract is extended over six months cumulatively through consultations between the employer and the worker, it shall be regarded that both parties have concluded the labor contract continuously.
Article 18 Where the employer and the worker continuously conclude a labor contract with a fixed period twice after the implementation of Labor Contract law of the People’s Republic of China, and the worker is not under any of the circumstances as prescribed in Article 39 and Subparagraphs (1) and (2) of Article 40 in the Labor Contract Law of the People’s Republic of China, the employer shall inform the worker in a written form that a labor contract without a fixed period may be concluded, thirty days before the expiration of the second labor contract.
Where the worker has worked for an uninterrupted term of ten years for the employer, the employer shall inform the worker in a written form that a labor contract without a fixed period may be concluded thirty days before the expiration of the labor contract.
Article 19 Before the expiration of the labor contract, in case the worker who meets the conditions to conclude a labor contract without a fixed period fails to propose to conclude a labor contract with a fixed period in a written form, or fails to propose to terminate the labor contract in a written form, but continues to work for the employer after the expiration of the labor contract, it shall be regarded that the worker agrees to conclude a labor contract without a fixed period with the employer.
Chapter III Performance and Alteration of the Labor Contract
Article 20 Employers and workers shall fully perform their obligations respectively as stipulated in the labor contract.
Article 21 The employer shall pay the worker thereof the full amount of remunerations in a timely manner in accordance with the contractual stipulations and the provisions of the State.
The employer shall follow the principle of equal pay for equal work, and carry out the same remuneration distribution system for workers of the same or similar posts.
Article 22 In case the employer and worker fail to stipulate or stipulate unclearly the remunerations and working conditions etc., both parties may have negotiation; if there is no agreement upon the negotiations, they shall be determined according to the following provisions:
(1) if the actual remuneration and working conditions are higher than the standard stipulated by the bylaws of the employer or collective contract, they shall be determined according to the content actually performed;
(2) if the content actually performed is lower than the standard stipulated by the bylaws of the employer or collective contract, they shall be determined according to the highest standard in favor of the worker;
(3) if there is no bylaw or collective contract, or the bylaw or collective contract fails to stipulate the remuneration, it shall follow the principle of equal pay for equal work;if there is no standard on working conditions etc., relevant provisions of the State shall prevail.
The remuneration and working conditions, etc., stipulated by the bylaws of the employer or collective contract shall not be lower than the standard stipulated by the State.
Article 23 Where an employer arranges the worker to carry out work in the weather of high temperature or under high temperature, it shall take measures for heatstroke prevention and lower temperature, and pay the worker allowances for high temperature and allowances for the post.
The allowances for high temperature paid by the employer shall not be lower than the standard stipulated by the State and this Province.
Article 24 Where an employer arranges the worker to work at the post of special working hour system approved by the labor administrative department, it shall stipulate it in the labor contract or ask the worker for permission in a written form.
Where the employer arranges the assigned worker to work at the post of special working hour system, it shall stipulate it in the labor contract and labor assignment contract or ask the worker and unit which assigns the worker for permission in a written form.
Article 25 In any of the following situations, the worker is transferred to a new employer for reasons not attributable to himself, his working time with the original employer shall be consolidated into his working time with the new employer; If the original employer has made economic compensations for his working time, the new employer shall not consolidate the worker"s working time with the original employer when calculating economic compensations for discharging or terminating the labor contract with him:
(1) the employer alters the post of the worker in the form of delegation;
(2) the post of the worker is altered due to the transfer of asset business, merger and reconstruction of asset of the employer;
(3) the employer arranges the worker to circulate in its subordinate branches or related enterprises;
(4) the employer and its related enterprises take turns to conclude a labor contract with the worker;
(5) other situations stipulated by law and regulations.
Article 26 Where the term of service stipulated by law is longer than the expiration of the term of the labor contract, the labor contract shall be performed until the expiration of the term of service. Where there are others provisions stipulated by both parties, those provisions shall apply.
Article 27 The employer and the worker may stipulate items on keeping confidential the business secrets of the employer and information related to intellectual property in the labor contract.
With respect to the worker who has the obligation of keeping secrets, the employer may stipulate the period for advance notification when the worker requests to discharge the labor contract and the post adjustment and remuneration during the period for advance notification with the worker in the labor contract or in the confidentiality agreement. The period for advance notification shall not be more than six months.
Article 28 The employer shall give the worker who leaves the post economic compensations within the period of business strife limitation on a monthly basis, and the monthly compensation shall not be lower than one third of the average salary over the past twelve months before the worker leaves.
Where the employer fails to give the worker economic compensation as stipulated, the worker may not perform the duty of business strife limitation, but where the worker has performed the duty, he is entitled to ask the employer for economic compensation.
The products of the same category or business of the same category stipulated in the business strife limitation are only limited to the relevant products and business actually conducted or operated by the employer before the worker leaves the post. The period of business strife limitation shall be stipulated by both parties and shall not be more than two years.
Article 29 The labor contract shall be altered upon unanimity through consultation by both parties. The alteration to the labor contract shall be made in a written form, and the date of alteration shall be clarified except in the circumstances in favor of the worker such as increasing the remuneration.
Where one party requires the alteration to the labor contract, it shall deliver the request to the other party in a written form, and where the other party fails to give a written reply within fifteen days upon receiving it, it shall be regarded as refusal to the alteration to the labor contract.
Article 30 In any of the following cases, the labor contract may be suspended:
(1) both parties reach an agreement through consultation;
(2) the personal freedom of the worker is restricted due to suspect of criminal offense;
(3) the labor contract cannot be performed temporarily due to force majeure;
(4) other circumstances stipulated by laws and regulations.
During the suspension of the labor contract, employment relationship shall be maintained and the performance of the labor contract shall be suspended. The employer may not pay the worker remuneration and stop paying social insurance premiums. The period during the suspension of the labor contract shall not be included into the employment time of the worker working at the employing unit.
Where circumstances for the suspension of the labor contract disappear, the performance of the labor contract shall be resumed except for what cannot be performed.
Chapter IV Discharge and Termination of the Labor Contract
Article 31 The discharge or termination of the labor contract by the employing unit shall meet statutory conditions and procedures.
Any employing unit that discharges a labor contract unilaterally shall notify the labor union of relevant reasons; where the labor union is not set up in the employing unit, it shall notify the labor union where it is located.
Article 32 Where the employing unit decides to discharge the labor contract with the worker by paying the latter an additional month"s salary,the amount of the additional month"s salary shall be determined according to the worker’s salary in the last month. If the salary in the last month cannot reflect the normal salary level, it shall be determined according to the average monthly salary of the last twelve months before the discharge of the labor contract; if the employmeng period is less than twelve months, it shall be determined according to the actual average monthly salary. Where the average monthly salary is lower than local minimum salary, it shall be determined according to the minimum salary standard.
Article 33 According to provisions of the Labor Contract Law of the People’s Republic of China and relevant provisions before the enactment of this law, in case of suspension of the labor contract or termination of the labor contract by the employer, economic compensation shall be made and the number of years shall be calculated to pay for economic compensation according to the conditions before and after the enactment of the Labor Contract Law of the Peoples’ Republic of China respectively. The monthly wage standard planned to distribute for economic compensation shall be the average monthly salary of the worker for the twelve months before the discharge or termination of the labor contract, and if the average monthly salary is lower than the local minimum salary, it shall be determined according to the minimum salary standard.
Article 34 Where the worker falls ill or is injured for a non-work-related reason, who is not able to bear the original post after the expiration ofmedical treatment period, nor can he assume any other position as arranged by the employer, the employer may discharge or terminate the labor contract according to law and give economic compensation. Where the worker has lost or partially lost his labor capacity as confirmed by the Labor Capacity Examination Committee, the employer shall give the worker a medical subsidy not less than the worker’s total salary of six months. Any worker who suffers from severe diseases or fatal diseases shall be given an additional medical subsidy. The additional subsidy for the worker who suffers from severe diseases shall not be less than fifty percent of the medical subsidy, and the additional subsidy for the worker who suffers from fatal diseases shall not be less than 100 percent of the medical subsidy.
Article 35 When the labor contract is discharged or terminated, the worker shall return belongings and technical materials to the employer and handle transfer procedures according to the bylaws of the employer and stipulations by both parties.
Where the labor contract is terminated because the worker gets retired, confidential agreements and business strife limitation remain binding.
Chapter V Special Rules
Article 36 The dispatched workers shall assume the temporary, assistant or substitute posts only.
The proportion of the dispatched workers to the total numbers of workers at the employing unit shall not be over the proportion stipulated by the State.
Where the enterprise lets contract to other units, but the workers of the contractors use the facilities and equipment at the production and operation places of the enterprise and provide labor according to the arrangement of the enterprise or provide labor in the name of the enterprise, or implement labor dispatch services in the name of outsourcing, the number of workers shall be taken into account of the proportion stipulated in the previous provision.
Article 37 The labor-dispatch service provider shall conclude a labor contract with a fixed term of more than two years with the worker to be dispatched. Where both parties have agreed to conclude a labor contract without a fixed period, they shall apply.
Article 38 Where the labor-dispatch service provider designates a worker to another region, it shall pay social insurance premiums where it is located for the dispatched worker at the place.
Article 39 The labor-dispatch service provider shall pay remuneration and due economic compensation to the worker and pay social insurance premiums in full amount timely according to law, regulations and the agreement on labor-dispatch service. No labor-dispatch service provider may withhold any remuneration and economic compensation that shall be paid to the worker, fail to pay or underpay social insurance premiums.
The employer shall pay remuneration, social insurance premiums, etc. in full amount to the labor-dispatch service provider according to provisions of law and regulations and agreements on labor-dispatch service.
Article 40 The dispatched worker may conclude a collective contract with the labor-dispatch service provider in terms of remuneration, working hours, skill training, work safety, health care, social insurance and welfare, and the protection on women workers’ interests and rights, etc. through collective consultations.
When the employer carries out collective consultation, it shall solicit dispatched workers’ opinions. Dispatched workers may select representatives for consultation, and carry out collective consultations on the aspects of equal pay for equal work, labor standard, overtime remunerations, performance bonuses, benefits relevant to the post, post training and wage adjustment mechanism, etc.
Article 41 Non-full-time labor refers to the 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.
Non-full-time labor does not apply to provisions on paid annual leave, overtime work and medical treatment period, etc. except as otherwise agreed by the employer and the worker.
Article 42 If the employer accepts full-time students as interns, it shall abide by law, regulations and relevant provisions of the State, provide necessary working conditions and safe and healthy working environment, and may not arrange students to carry out labor of high-altitude and underground operation which has nothing to do with their majors, labor with exposure to radioactive, high toxic, and inflammable and explosive materials, and labor at the fourth level of labor intensity prescribed by the State.
No school may organize, arrange and administrate internship through agencies or labor-dispatch service providers. No enterprise may arrange post practice with a total length over twelve months, and arrange students to carry out post practice over eight hours a day, and over forty hours a week. Where it is otherwise prescribed by the State, such provisions shall prevail.
The employer shall educate students on labor safety and health, and prevent accidents in the process of labor. Enterprises shall insure students in the post practice against accidental injury according to the internship agreement.
Enterprises shall directly pay students in post practice internship remuneration according to the stipulated standard and it shall not be lower than the local minimum salary rates. Enterprises and schools shall not deduce or default the internship remuneration of the students in post practice.
Chapter VI Surveillance and Administration of the Labor Contract
Article 43 The labor administrative department of the local people’s government at or above the county level shall guide the employer to establish and perfect the bylaws matching the labor contract system, perfect the text of labor contract, set up a roll of employees, standardize the conclusion, performance, transfer, discharge and termination of the labor contract.
Article 44 The labor administrative department of the local people’s government at or above the county level shall establish and perfect the system of investigation into and publication of enterprise remuneration, guide the employer to carry out collective consultations on wage and establish and perfect the system of normal rise in employees’ wages.
Article 45 The ;abor administrative department of the local people’s government at or above the county level shall establish an inspection system on written materials of the employer and carry out supervision on the employer’s implementation of labor contracts.
The employer shall submit materials on information such as the employer’s establishment according to law, recruitment of employees, observation of the provisions of labor contracts and collective contracts, payment for remuneration, providing labor conditions, participation in social insurance, etc., upon request by the labor administrative department of the local people’s government at or above the county level.
Article 46 The labor administrative department of the local people’s government at or above the county level shall establish a mechanism of investigation into the dispute in labor relationship, carry out administrative mediation according to law, promote both parties to reach a mediation agreement. It shall report serious dispute in labor relationship to the people’s government of the same level and inform relevant departments.
Article 47 The labor administrative department of the local people’s government at or above the county level shall establish a law-abiding and credit archive on labor relationship of the employer.
The labor administrative department of the local people’s government at or above the county level may announce to the public the employer whose acts seriously violate the labor law and regulations and inform relevant departments of relevant information.
Article 48 The labor administrative department of the local people’s government at or above the county level shall establish a responsibility system of administrative law enforcement, reinforce the training, evaluation, supervision and administration of working personnel.
The labor administrative department of the local people’s government at or above the county level shall carry out administrative duties according to law, enforce the law impartially, and perform functions and duties according to the statutory authority and procedures.
Article 49 Relevant departments such as economy and information, education, public security, housing and urban and rural construction, health, industrial and commercial administration, safety production supervision of the local people’s government at or above the county level shall carry out supervision and administration on the employer’s implementation of labor contract regulations within their respective functions and duties.
Article 50 The labor union shall help and guide the worker to conclude and perform the labor contract according to law with the employer, negotiate with the employer on the formulation, revision and decision, etc. of important regulations and significant issues in direct relation to workers’ personal interests and and report the workers’ opinions and requests to the employer.
Where the employer infringes on the worker’s legitimate rights, the labor union has the right to urge the employer to make correction timely; if the employer refuses to make correction, the labor union may bring it to relevant departments such as labor administration to deal with it according to law.
Article 51 The labor relationship coordination committee shall hold coordination meetings on a regular basis, carry out consultation on the formulation of labor policy, decision on labor standard, and significant issues involving labor relationship such as collective consultation controversy and handling of labor dispute, etc.; guide the employer to abide by labor law and regulations, perform social responsibility, and safeguard workers’ legal rights; guide workers to perform labor obligations, abide by work ethics and improve professional skills.
Chapter VII Legal Liabilities
Article 52 In the case of any of the following circumstances, the employer, in violation the provisions of these Regulations, shall make up by the conclusion of the labor contract in a written form timely and pay the worker double amount of his monthly salary:
(1) employing people on an extended break for production suspension of the enterprise, people who do not reach the statutory retirement age but leave the post to recuperate, and other people who do not assume the post but sustain the employment relationship after consultation, and failing to conclude the labor contract in a written form in more than one month but less than one year after the date of employment of the worker;
(2) continuing to employ the worker after the expiration of the labor contract, but failing to continue the labor contract in a written form in more than one month but less than one year after the date of employment of the worker.
The date when an employer pays the worker double amount of his monthly salary prescribed in the previous paragraph shall be the next day of the one month after the expiration of the labor contract, and the deadline shall be one day before making up by the conclusion of the labor contract in a written form.
Where the employer refuses to make up by the conclusion of the labor contract in a written form and discharge the labor relationship, it shall pay double amount of economic compensation standard.
Article 53 Where the employer, in violation of the provisions in these Regulations, fails to pay the work remuneration in full amount timely, the labor administrative department of the local peoples’ government at or above the county level shall order it to pay it within a time limit; if a crime is constituted, the criminal liabilities shall be investigated according to law.
Article 54 where the employer chooses to discharge the labor contract after it pays the worker an extra month’s salary, but fails to pay or fails to pay for it in full amount, the labor administrative department of the local peoples’ government at or above the county level shall order it to pay it within a time limit; where payment is not made within the time limit, the employer shall 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.
Article 55 Where the worker, in violation of the provisions of these Regulations, fails to return belongings and technical materials to the employer during the discharge or termination of the labor contract, or fails to handle transfer procedures according to the bylaws of the employer and stipulations by both parties, he shall bear a liability of compensation according to law.
Article 56 Where the employer, in violation of the provisions in these Regulations, fails to pay a labor-dispatch service provider remunerations and social insurance premiums, etc. in full amount to the dispatched worker timely, and causes the labor-dispatch service provider’s failure to pay the dispatched worker remunerations and social insurance premiums in full amount, the labor administrative department of the local people’s government at or above the county level shall order the employer to pay the dispatched worker remunerations and pay the labor-dispatch service providers social insurance premiums within the amount of the not-fully-paid fees.
Article 57 Where the employer, in violation of the provisions in these Regulations, arranges students in post practice to work over twelve months in all, and more than eight hours a day or more than forty hours a week, the labor administrative department of the local people’s government at or above the county level shall order it to make correction, and may give a fine according to the standard of not less than RMB 100 yuan but not more than RMB 150 yuan for each infringed student.
Where the enterprise, in violation of the provisions in these Regulations, deduces or defaults the internship remunerations of students in post practice, the labor administrative department of the local people’s government at or above the county level shall order it to pay internship remunerations; if the internship remuneration is lower than the local minimum salary, it shall pay for the shortfall; if it fails to pay it, it shall order the enterprise to pay full amount of internship remuneration, and pay an extra compensation to students in post practice at the rate of not less than 50 percent and not more than 100 percent of the payable amount.
Article 58 Where students in post practice are injured accidentally during work, and fail to get insured against accidental injury as stipulated, or the accidental injury insurance cannot cover the compensation, the enterprise shall bear the responsibility for compensation; where the school which organizes the internship fails to bear the responsibility of administration, it shall bear the liability of paying an extra compensation.
Article 59 Where the labor administrative department of the local people’s government at or above the county level, other relevant competent departments and the personnel thereof fail to perform statutory functions, duties or exercise its/his duties in violation of law, if any damage occurs to the worker or the employer, it/he shall bear the liability for compensation; the person directly in charge and other persons directly responsible shall be given administrative punishment; where a crime is constituted, the criminal liabilities shall be investigated according to law.
Chapter VIII Supplementary Provisions
Article 60 These Regulations shall enter into effect as of May 1, 2013.