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Effective ways on China workers recruitment #3

By Cyrus, on February 23rd, 2010
Number of View: 3751

China Labor contract only protects the locals instead on company, why? Due to China large population the burden on government support is heavy on their people, hence government using labor contract to restrict company but protects the locals in terms of termination, minimum wages and compensation, smart move!

Many labor intensive industries would choose China as their subsidiary because is easy to find skilled workers here compare to other underdeveloped countries. Example in garment industries, a high labor intensive factory causing many company suffer great losses on labor contract, why? For more information please refer to my previous article on “How to tackle China Labor Laws #1 and #2″ before you continue reading below to ease in your understandings.

If your company business registration in China using a foreigner you will have least advantages compare to a local. Reason because the locals always think that more compensation could receive from multinational or transnational enterprise instead on a local factory. Think about it, if you have notice why all McDonalds’ restaurants use locals’ names registered in their business registration, environmental permit or sanitary licence under every outlet instead registered under a foreigner name? As I mentioned before is always easier to use the locals to deal with the locals on legal or illegal cases, do you think is wisely to ask the boss to speak to the media during a food poisoning crisis or a local representative would be a better choice? Even if you lose a case the penalty charges or compensation using the locals would also be lower than a foreigner! This is a traditional culture in China even the United States couldn’t changed this culture and beliefs but force to accept to allow China enter WTO!

Once you understood my above explanation you should get a clearer picture on how to sign local labor contract. Firstly don’t use foreigner name but a local name signing on labor contract on the behalf of the company with company stamp, is legal with or without signature but when a local representative signing the contract could give him better responsibility and management to your company, trust me. Other terms and condition in the contract is either mandatory on one standard throughout the city or is alterable in condition comply with local laws. If is standardised labor contract provided by Labor Authority, to enforce your company rules and regulations you could create another written agreement reviewed by your legal advisor or put on record in Labor Authority to prevent future workers’ dispute. If your Labor Authority allowing you to amend, change or add onto the original labor contract, remember to have them chopped with Labor Authority stamp otherwise it would not be recognised and enforced by the local government.

Most troublesome situation is when your labor contract has to be reviewed by your buyer’s compliance on human rights, Non-goverment Organisation (NGO) in human rights protection or labor union. Few methodology you could consider, first is to fraud the contract by swapping (偷龙转凤) to different party, show original copy to Labor Authority and fake copy to NGO. Or you could obey all local Labor Laws in which easier for you to comply to all third parties evaluation, but is very technical and tedious to control, requires your trustworthy company personnel to run the entire show and on your regular monitoring and inspections, more details could refer to “China Office Politics #3″ and “Truth vs Lies”.


 

 

 

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