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Labor Contract Law in China and Legal Responsibility

The legal responsibilities are specified in the Chinese Labor Contract Law. The two parties of a labor contract should learn about the responsibilities and perform their obligations according to law. Here are some of the key legal responsibilities you must know.

1. If an employing unit makes its rules and regulations that have a direct bearing on the immediate interests of workers in violation of the law, or fails to provide the requisite terms stated by the Chinese Labor Contract Law in the labor contract or fails to deliver a copy of the labor contract to the worker, the administrative department of labor shall order it to rectify. If harm is done to the worker, the employer shall compensate him.

2. If an employing unit reaches an agreement with a worker on a probation period but violates the Chinese Labor Contract Law, the administrative department of labor shall order it to rectify. If such illegal agreement on a probation period is executed, the employing unit shall be liable for compensation.

3. If an employing unit illegally detains a worker’s resident identity card or other certificates, illegally collect money or things of value from the workers in the name of guaranty or in other names, or detains a worker’s personal file or other articles when the worker has his labor contract revoked or terminated in adherence to law, the administrative department of labor shall order it to return the same to the worker within a time limit and impose on it a penalty.

4. If an employing unit fails to pay a worker’s remuneration according to law, the administrative department of labor shall order it to pay the remuneration, give overtime pay or make other financial compensation within a time limit.

5. If a labor contract is confirmed to be invalid and causes harm to the other party, the party in default shall be liable for compensation.

6. If an employing unit revokes or terminates a labor contract illegally, it shall be liable for compensation.

7. If an employing unit damages the personal rights and interests of workers, it shall be liable for an administrative sanction according to law; if harm is done to a worker, the employing unit shall be liable for compensation.

8. If a worker revokes the labor contract illegally or breaches the confidentiality obligation or competition restriction stated in the labor contract, thereby causing losses to the employing unit, he shall be liable for compensation.

9. If a labor-dispatching unit violates the Labor Contract Law, it shall rectify at the order of the administrative department of labor concerned. If the circumstances are serious, it shall pay a fine and its business license shall be revoked. If harm is caused to the dispatched workers, the labor-dispatching unit and the labor-receiving unit shall bear joint and several liabilities for compensation.

10. If an administrative department of labor or another department concerned or its staff neglects its/his duties and fails to perform the statutory duties, or exercises its/his functions and powers in violation of law, thereby causing losses to a worker or an employing unit, it /he shall be liable for compensation.

Whether the employing unit, the worker, the dispatching unit or receiving unit, or relevant administrative departments, shall conduct their duties according to the Labor Contract Law and take respective legal responsibilities if they violate it. Want to know more details? INS will give you more insights with its official guides.

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DATE October 17, 2019
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