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Xiamen Labour Administration
Add East Park Road, Xiamen
Tel: 86-592-2022320Fax: 86-592-2057745

Xiamen Labor Regulations

In accordance with the Law of Labour of the People's Republic of China and the Administrative Regulations on Labour in Xiamen Special Economic Zone, foreign-funded enterprises are entitled to full decision-making power in personnel affairs, wage and salary arrangement, and rights and interests of independent lawful management. Details are as folIows:

1. Foreign-funded enterprises can independently determine, in light of the needs of operation and management, on the structures of organisations and personnel arrangement and can make independent decisions on the recruitment and dismissal of employees.

2. Foreign-funded enterprises shall practice labour contractual employment system without discrimination and with a probation period of 3-6 months. Labour contracts shall be made between the enterprises and the employees and one month notice shall be given before either side terminates the contracts and the subsequent procedures shall be made according to the relevant regulations.

3. Foreign-funded enterprises shall practice a system of less than 8 work hours daily and less than an average of 44 hours weekly. If necessary to the production and operations, overtime work can be allowed but not exceeding 3 hours daily and 36 hours monthly. Overtime pay shall be given and it shall not be less than 150%, 200% and 300% of the normal wages for overtime work at usual time, on rest days and on festival or holidays respectively.

4. Foreign-funded enterprises can independently determine on the wage arrangement and wage scale in light of the characteristics of production and operations and the economic performance and in accordance with the laws, but the wages shall not be the minimum wage scale published by Xiamen Municipality of the very year.

5. Enterprises shall take care of the labour protection and welfare of their employees during the period of employment. A certain amount of Employees' Welfare Fund shall be withdrawn from foreign-funded enterprises at the disposal of the enterprises, as the general welfare, medical and health care, difficulty subsidy and housing subsidy, etc..

6. Foreign-funded enterprises shall pay monthly to the labour administrative, or social security departments the pension fund, unemployment insurance fund and Insurance fund against work injuries for the local employees for the use of pension, unemployment subsidies and work injury expenses.

7. If employing overseas personnel, the foreign-funded enterprises shall then apply to Xiamen Labour Administration for the Employment Cards and then go through the temporary stay procedure with the municipal Public Security Bureau to get the Stay Permits and then sign employment contracts.

8. Labour disputes in foreign-funded enterprises shall generally be settled in the sequence of consultation, mediation, arbitrage and legal proceedings.

Labour Administrative Department: Xiamen Labour Administration is the competent department in charge of the management of the labour affairs of the foreign-funded enterprises of the whole city.

SEZ Labour Service Company: to take care of wholly foreign-owned enterprises, foreign-funded banks and some specially designated joint ventures.

Foreign Investment Division of municipal Labour Administration: to take care of Sinoforeign joint ventures and cooperative enterprises.

Labour Administrations of county and districts: to take care of foreign-funded enterprises in their respective county and districts.

The municipal Foreign Service Centre: to take care of the representative offices stationed in Xiamen set up by overseas enterprises.

©1996, Xindeco Business Information Company, all rights reserved



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