Sergio M. Moccia  The level of protection provided by Chinese labour law compared to   German labour law                                                                IGEL Verlag 

                                                          Sergio M. Moccia  The level of protection provided by Chinese labour law compared to  German labour law  1.Auflage 2008  |  ISBN: 978‐3‐86815‐946‐2  © IGEL Verlag GmbH , 2008. Alle Rechte vorbehalten. 

   

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Table of Contents I. Table of Figures II. List of Abbreviations III. Executive summary

Page VII VIII IX

1. Introduction

1

2. The German Labour Law

3

2.1 The Contract of employment

3

2.1.1 Probation

3

2.1.2 Termination of employment

4

2.1.3 Extraordinary dismissal

5

2.2 Trade union and employers' association regulation

6

2.2.1 Trade unions

6

2.2.2 Employers' associations

7

2.3 Collective Bargaining and Agreements

7

3. The Development of the Chinese Labour Law

10

3.1 The Contract employment system and its position in the Labour Code

10

3.2 Difficulties and scant attempts to alleviate the situation

12

3.2.1 Reward based on status rather than performance

12

3.2.2 Skills did not meet the job requirements

13

3.2.3 Disequilibrium of Labour and Supply

14

3.3 The Way to the Contract Employment System

14

3.3.1 The Ministry Notice

15

3.3.2 The Contract Employment Regulations

16

3.4 The Chinese Labour Law from 1994

19

3.4.1 Legal Bases

19

3.4.2 Foreign employees

20

3.4.3 Representative office

20

3.4.4 The justification of a working relation

20

3.4.5 Duration of the working relation

22

3.4.6 Dismissal by the employer

23

3.4.7 Resignation by the employee

25

3.4.8 Compensation

26

3.4.9 Working time, recuperation days and vacation

28

IV

3.4.10 Wages

31

3.4.11 Illness and accident

33

3.4.12 Non-competition clause

34

3.4.13 Particular protection for female and minor employees

35

3.5 Labour disputes

35

3.6 Unions and collective agreement

36

3.6.1 Trade Union Law from 1992

36

3.6.2 Collective contracts of employment

38

3.6.3 The Union Law from 2001 and its practical experience

38

3.6.4 Conclusion

42

3.7 The Local implementation of the Employment Contract System

42

3.7.1 National objectives vs. priorities of local governments

43

3.7.3 The Contract Employment System and its local implementation

44

3.7.4 Conclusion and current situation

48

4. Cases

50

4.1 Shanghai Otis Elevator Company Ltd.

50

4.2 Li Kai Di Chang shoe manufacturer

54

4.3 Beijing Olympics

57

4.4 Commentary

60

5. Labour Law in Taiwan

62

5.1 Historical background

62

5.2 Comparisons to continental china

62

5.3 Future perspective

64

6. Labour Law in Hong Kong

65

6.1 Historical Background

65

6.2 Current situation

66

6.3 Future perspective

66

7. China’s New Labour Contract Law

67

7.1 Development

67

7.2 Controversial points of view and the altered regulations

67

7.3 Résumé and Expectations

71

8. Chinese Labour Law and its implications on companies

74

8.1 Domestic Employees and the Chinese Labour Law

74

8.2 Foreign Employees in China and the Chinese Labour Law

76

V

8.3 Ramifications on German and FDI enterprises

78

9. Conclusion

83

IV. References

85

Literature

85

Internet Sources

85

Law Sources

87

VI

I. Table of Figures

Page

Figure 1: Working time period and cancellation period

4

Figure 2: Duration of contracts and probation

22

Figure 3: Relation between working time and treatment period

33

Figure 4: Continuation of payment I

34

Figure 5: Continuation of payment II

34

Figure 6: Working day schedule

58

VII

II. List of Abbreviations

FDI

Foreign Direct Investment

BDI

Bundesverband der deutschen Industrie

BDA

Bundesvereinigung der deutschen Arbeitgeber

ACFTU

All-China Federation of Trade Unions

CCP

Chinese Communist Party

FESCO

Foreign Enterprise Service Company

PRC

People’s Republic of China

SEZ

Special Economic Zone

GDP

Gross Domestic Product

FIE

Foreign Invested Enterprise

USA

United States of America

RMB

Renminbi

IOC

International Olympic Committee

LSL

Labour Standard Law

ITUC

International Trade Union Cooperation

HR

Human Resource

VIII