Draft Implementation Rules of PRC Labor Contract Law (Consultation Paper) circulated by State Council on 9 May 2008

After a quick look, some points that drew my attention:

-          Articles wrt. the termination of employment mirror those in the LCL. (hmmm)

-          Note Article 9 on calculation of term of employment

-          Note Article 18 on remuneration during probation

-          Article 19 on special training fund

-          Article 21 on senior management eligible for non-compete

-          Article 26 on invalidity of existing provisions in an employment contract contradicting with the LCL wef. 1 Jan 2008

-          Article 38 restrictions on use and return of seconded workers (note: too stringent)

In a nutshell, the Draft Implementation Rules did clarify a few things and has specific guidance in relation to termination, compensation and retroactivity. However, some clauses, for example those set out above might be subject to debate or beefing up. 

The full-text of the Paper (in Chinese) is available here: ttp://yijian.chinalaw.gov.cn/lismsPro/law_download/fulltext/1210293139250.doc

Feedback should be reverted back to State Council by 20 May 2008. I’m wondering who will send in their feedback…say American Chamber of Commerce?