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The US-China Business Law Conference at UCLA Jiang Junlun, Ph.D. Partner King & Wood PRC Lawyers

The US-China Business Law Conference at UCLA Jiang Junlun, Ph.D. Partner King & Wood PRC Lawyers October 24, 2008 UCLA School of Law. Latest PRC Legislation. PRC Employment Contract Law ( effective Jan. 1, 2008 ) PRC Employment Promotion Law ( effective Jan. 1, 2008 )

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The US-China Business Law Conference at UCLA Jiang Junlun, Ph.D. Partner King & Wood PRC Lawyers

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  1. The US-China Business Law Conference at UCLA Jiang Junlun, Ph.D. Partner King & Wood PRC Lawyers October 24, 2008 UCLA School of Law

  2. Latest PRC Legislation • PRC Employment Contract Law (effective Jan. 1, 2008) • PRC Employment Promotion Law (effective Jan. 1, 2008) • PRC Conciliation and Arbitration Law on Labor Disputes (effective May 1, 2008)

  3. Social Background and Legislative Intent • Labor employment disputes have been increasing at about 20% per year in the last decade. • In 2006, Labor Dispute Arbitration Committees at all levels received over 447, 000 labor arbitration filings. • Rising labor costs • The model of “harmonious society” • International labor standard and corporate social responsibility

  4. Frequently Litigated Issues( 1) • Overtime, backpay, salary reduction • Social insurance, work-related injury • Wrongful termination, severance • Employment handbook and internal rules • Restrictive covenant, non-competition

  5. Frequently Litigated Issues( 2) • Employee training agreement • Workforce reduction due to M&A or re-structuring • Labor dispatch and staffing agencies • Written employment contract • Non-fixed term employment contract

  6. Trade Union • All-China Federation of Trade Unions (“ACFTU”) • Important roles • directly involvement in collective negotiation, collective contract • forming an enterprise labor dispute mediation committee • representation in official arbitration committee • function in lay-off process and procedures • function in formulating and revising employment handbook and internal rules • role in terminating individual employment contract

  7. Dispute Resolution • Mediation • Arbitration • mandatory • arbitrator free of charge, no filing fee • 1-year statute of limitations • final award for certain cases, with limited right to appeal, such as small claims, working hours, holiday and vacation, and social insurances • right to appeal for other cases • Litigation • appeal of arbitration decision • petition for enforcement

  8. Q & A Thank You! Jiang Junlu, Ph.D. Partner King & Wood PRC Lawyers Tel: +86-10-5878-5055 Fax: +86-10-5878-5599 Email: jiangjunlu@kingandwood.com Website: www.kingandwood.com

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