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Major Trends

1. The Individual Income Tax Threshold - RMB 3,500 Implemented Since September 2011

On June 30, 2011, the Chinese authorities approved the decision of revising the Law on Personal Income Tax. The new law came into effect on September 1, 2011, since then the individual income tax threshold is RMB 3,500 consequently.

2. U.S. Employee Rights Notifications Required to be Posted

On August 22, 2011, the National Labor Relations Board (NLRB) has issued a final rule requiring the majority of private-sector employers to post a notice in conspicuous places of each workplace notifying employees of their labor relations rights under the National Labor Relations Act (NLRA). For more information, please click here.

Industry Observation

3. Nantong Leads off the Implementation of Wage Warning Mechanism for Wage Arrears

On September 8, 2011, Wage Warning Mechanism Interim Measures Implementation Rules for corporations in Nantong was issued in Nantong, Jiangsu Province, applicable for all corporations in the city, stating that yellow level and red level warnings are to be imposed respectively due to not paying wage or not raising wage in accordance with the labor contract.

4. Minimum Wage Raised in Guizhou Province

On August 27, 2011, Guizhou Province raised its minimum wage standard. Details as below:

Province Minimum Wage Standard (RMB)Effective Date
Monthly (Full-Time) Hourly (Part-Time)
Guizhou 930 / 830 / 740 10 / 9 / 8 September 1, 2011

SGS has updated its Minimum Wages in China Map accordingly.

5. Guangxi Province: Sanitation Workers also Enjoy High Temperature Allowance

On September 6, 2011, Guangxi Social Security Ministry released a document to further explain related issues about the corporate high temperature allowance: employees including sanitation workers can enjoy appropriate allowance working under high humidity environment; corporations are required to set written allowance rules.

6. Dalian-based Employers to Face Higher Social Insurance Costs

On August 25, 2011, Dalian released a new policy set to come into effect on September 1, 2011, stating that the calculation of the employer contribution for social insurance costs on behalf of their employees will be changed. Such contribution of the employer for the social insurance payment will be based on the total previous month’s salary received by the employee.

7. China Human Rights Development Report NO.1 (2011) Released in Beijing

On September 8, 2011, China Human Rights Studies and Social Science Documentation Publishing House held a press conference in Beijing, releasing China Human Rights Development Report NO.1 (2011), the first blue book on China human rights development. As for the discrimination in employment, this book puts forward that Anti-employment Discrimination Laws should be made to guarantee labors’ fair employment rights.

8. The Ability of Drinking is Required in a Job Advertisement

On August 11, 2011, a newly established large cultural media company in Guizhou province released its hiring requirements on 40 female potential employees: standard Mandarin; decent appearance; over 160 cm.; age between 18 and 30; particularly able to drink at least 500 gm. of liquor. This practice actually is a kind of discrimination in employment, which violates associated laws.

9. Child Labor Found until Hospitalization

On September 3, 2011, an employee was found as child labor when he/she was hospitalized due to sudden illness during a training session in Shiyan, Hubei. Even if employees deliberately conceal their age, according to associated laws and regulations, they should have no responsibility with their limited recognition. In such case, corporations should strictly review their status before hiring in avoidance of illegal employment.

10. Fifteen (15) Corporations Being Punished due to Illegal Employment of Child Labor

On August 22, 2011, Labor Department of Lin’an, Zhejiang had an inspection to check whether the companies had complied with the provision of child labor and regulations on labor protection of women workers and young workers among corporations. So far, 15 corporations received administrative penalty for illegally hiring child labor and violating the provision of protection for young workers, which effectively leads corporations to arise the awareness of legal employment and standardize enterprise labor management so as to protect employees’ lawful rights.

11. A Man’s Left Hand Rolled into the Machine When Working Overtime at Night

At 5:00 am on September 9, 2011, Mr. He worked as usual in the workshop of a machine tool factory in Dongguan, Guangdong. Due to consistently working overtime at night, he felt exhausted. As a result, his left hand was rolled into the machine which was running up at high speed when he tried to pick up an accessory.

12. Fifteen (15) People Died in a Fire at a Ceramics Factory in Foshan

On August 23, 2011, a fire occurred in a ceramics factory in Foshan; 15 people were dead and 1 person was seriously injured. According to related departments’ analysis, that building lacked of fire protection facilities; fireproofing measures were not made between dormitories and working area and no closed stair well; no firefighting training and emergency drill.

13. Corporations Facing New Challenges of Environmental Protection

According to officials who are taking part in drafting Environmental Protection Law, Environmental Protection Law is under draft and Daily Penalty will be written in it, which means corporations will pay a lot if they violate the environmental law.

International News

14. GeSI and the EICC Launched Conflict Minerals Reporting Template and Dashboard

On August 3, 2011, GeSI and EICC announced the launch of the Conflict Minerals Reporting Template tool, developed to facilitate disclosure and communication of information regarding smelters that provide material to a company’s supply chain. Common tools reduce duplication in company due diligence practices, enabling a focus on the development of quality data, gathered once and available in a consistent format for multiple organizations and industries. For more information, please click here.

15. Online consultation on BSCI self-assessment questionnaires

On September 19, 2011, BSCI opens the new self-assessment questionnaires for consultation ahead of their adoption later this year. This process aims at gathering feedback from stakeholders, including BSCI participating companies, suppliers and other interested parties. Comments and recommendations received will be collected and considered for the final self-assessment questionnaires if necessary. For more information, please click here.

Hot Events

Exclusive Seminar for Knitting Industries - Worldwide Responsible Accredited Production

Date: October 21, 2011(Shenzhen)
October 28, 2011(Shanghai)
Time: 2:00 p.m. - 5:00 p.m.
Language:  Mandarin
Fee: Free
Contact: For registration inquiries:
Ms. Ge
0755-25328888 *8937

Business Social Compliance Initiative (BSCI) Requirement Training

Date: October 20, 2011
Place: Shanghai / Shenzen
Language:  Mandarin
Fee: RMB 880 / person / day
(Special discounts for early birds)
Contact: For registration inquiries:
Ms. Yin
021-61402666 *6735 (Shanghai)
Ms. Luo
0755-25328888 *8455 (Shenzhen)

Website: www.sgs.com.hk

ABOUT SGS

SGS is the world’s leading inspection, verification, testing and certification company. SGS is recognized as the global benchmark for quality and integrity. With more than 75,000 employees, SGS operates a network of over 1,500 offices and laboratories around the world.