China Employment Law Update - September 2015

30 September 2015

Ying Wang, Pádraig Walsh, Susan de Silva, Lesley Maclou

  1. Shanghai Human Resource Bureau releases data on the basic Status of Shanghai Social Insurance
  2. ACFTU releases a notice to enforce the State Council's opinions on legal aid
  3. The 9th Amendment of Criminal Law prohibits individuals from reengaging in jobs where they have been sentenced for profession-related crimes

Basic Status of Shanghai Social Insurance released
A report issued by the Shanghai Human Resource and Social Security Bureau on 7 September 2015 has summarised the status of the social insurance fund in Shanghai as detailed below:

Item
(1 Billion)

Pension Insurance

Medical Insurance

Unemployment Insurance

Work-Related Injury Insurance

Maternity Insurance

Total

The total amount of the fund at the end of 2014

100.645

88.285

15.703

5.224

0.676

210.533

The fund earnings in 2014

164.865

68.944

8.976

3.224

4.315

484.1.33

The fund expenses in 2014

146.241

49.234

8.359

2.818

3.759

405.886


Last year, the pension scheme for retired urban employees in Shanghai paid an average monthly pension sum of approximately RMB 2964. 98,100 people received unemployment insurance benefit at the end of 2014 and the per capita insurance was paid at a monthly rate of RMB 991.

57,700 people were verified as suffering from a work-related injury and 68,600 people enjoyed work-related insurance benefit at the sum of RMB 41,191 per person. Employed women received maternity insurance benefits totalling RMB 124,000. The insurance benefit was paid at an average of RMB 30,000 per capita per month.


ACFTU Releases Notice on Legal Aid
On 22 September 2015, the All-China Federation of Trade Unions (ACFTU) released a notice requiring all levels of trade unions to enforce the State Council's recently issued opinions on improving the legal aid system (the "Notice"). The key points of the Notice are as follows:
  • Industries in which labour disputes occur frequently, and where employees' rights and interests are easily infringed, should be identified as key areas for legal aid;
  • Rural workers who are incapable of protecting their rights and poverty-stricken employees should be treated as the highest priority for legal aid;
  • Delayed payment of salaries and compensation for work-related injuries should be handled as priority cases;
  • Legal aid should be rolled out and extended to towns, counties, communities and industrial parks;
  • The financial assessment of rural workers when they make applications for payment of salary or compensation for work-related injuries should be removed; and
  • Efforts should be made to accept, assess, and handle applications made by rural workers and impoverished employees within one day.

The 9th Amendment of Criminal Law prohibits individuals from reengaging in jobs where they have been sentenced for profession-related crimes
The 9th Amendment of Criminal Law introduces new sub-section to Article 37 which could prohibit individuals who have been sentenced for crimes committed in violation of their professional obligations or in abuse of their position from engaging in the relevant profession for three to five years after the sentence has been served. The amendment, which was formulated on 29 August 2015 by the Standing Committee of the National People's Congress, comes into effect on 1 November 2015. Article 37 sets out the exemptions from criminal punishment in the event of minor criminal activity. In such circumstances criminal penalties are replaced with reprimands, repentances, apologies or compensation payments. The amendment aims to prevent individuals from reoffending.

Authors

Walsh-Pádraig

Pádraig Walsh

Partner
China and Hong Kong

Call me on: +852 2248 6000
Image of Ying Wang

Ying Wang

Partner
China and Hong Kong

Call me on: +86 21 2312 1288
de Silva-Susan

Susan de Silva

Consultant
Singapore

Call me on: +65 6534 5266