Long Credit Business Information

1 Labor employment
Foreign-invested enterprises must sign labor contracts with their employees, and are also required to sign labor agreements with their suppliers of labor.
a Employment
In employing permanent urban residents of Beijing, foreign-invested enterprises shall go through the normal procedures of employment. In employing Beijing`s rural laborers, foreign-invested enterprises shall go therougn the procedures at the labor and social insurance bureaus of the district or county where the laborers are registered.
In employing Chinese citizens from outside of Beijing, foreign-invested enterprises shall apply to the Beijing Municipal Labor and Social Insurance Bureau for work permits of their behalf. With approval of the bureau, the aforesaid Chinese citizens may be granted work permits for jobs at foreign-invested enterprises.
In employing personnel from Taiwan, Hong Kong and Macao for jobs in Beijing, foreign-invested enterprise shall apply to Beijing Municipal Bureau of Labor and Social Insurance for work permits for the aforesaid personnel within 15 days after their entry to the Chinese mainland.
b Termination of employment
Upon expiration of a labor contract and emergence of other conditions for termination of employ ment, the labor contract shall terminate. With consensus of opinion reached through consultation be teen the employer and employee, the labor contract may continue upon its expiration. If any of the parties involved does not agree to continue the labor contract upon its expiration, the relations of labor
shall be renounced.
While the labor contract is still in force, the employer and employee may cancel the labor contract with consensus of opinion reached through consolation. Upon emergence of statutory conditions
for cancellation of the labor contract, the parties involved shall have the right to cancel the labor contract.

c Economic indemnity and compensation
Upon expiration of the labor contract, the enterprise may pay indemnity to the employee.
The employer may not pay indemnity to the employee if, during the period of the employee`s trial use, the employee fails to meet the recruitment standards set by the employer or it the labor contract is cancelled due to error of the employee. In both cases the circumstances should conform to the stipu lations in the Labor Law.
The enterprise shall,in accordance with the relevant state and municipal legislation, pay the em ployee indemnity for cancellation of the labor contract not error on the part of the employee
.In a given enterprise, the party that causes economic losses to the other should compensate the victim ized party.
2 Labor protection
a The system of work hours and vacation
The employee shall, under normal circumstances, work for not longer than eight hours per day, and for not longer than 40 hours per week. The New Year`s Day, the Spring Festival (the New Year`s Day by China`s lunar calendar), the International Labor Day and the National Day of the People`s Republic of China are statutory holidays for the general public. Employees who have worked in an enterprise for a period longer than one year are entitled to an annual period of vacation with pay. However, the duration of the annual vacation is subject to decision by the enterprise.
b Protection of female and under-age laborers
Foreign-invested enterprises shall be obliged to implement the Beijing Municipal Government rules and regulations on protection of female and under-age laborers.
3 Wages, social insurance and fringe benefits
a Wages
Foreign-invested enterprises may independently decide their own ways of distribution and the rates and scales of wages paid to their employees. Nevertheless, wages paid to the laborers must on no account be lower than the lowest raters prescribed by the Municipal Government, that is, RMB2.46per hour and RMB4012 per month. Under normal circumstances, the government-set minimum wage is adjusted every year.
Fringe Benefits and Welfare for Workers and Staff Members of Foreign-Invested
Enterprises Operation in China

Social Insurance and other Welfare Fees
Items Deductions Base for fees
Insurance against old age 19%The average wage of the preceding year for all those insured in a given enterprise
Insurance against unemployment 1.5% The average monthly wage of the preceding year for the Chinese employees in a given enterprises
Insurance against work site injuries 0.3-1.6, depending on conditions of each industry The average monthly wage of the preceding year for all those insured in given enterprise
Overall insurance for treatment of serious disease 2.5% The average monthly wage of the preceding year for workers and staff in Beijing
Basic medical insurance 9% The average wage of the preceding year for the Chinese employees in a given enterprises
Mutual-aid fund to cover large sums of medical expenses 1% The average monthly wage of the preceding year for the Chinese employees in a given enterprises
Collective housing fund 10%The average monthly wage of the preceding year for the Chinese employees in a given enterprises

Remarks: At present, the reform in china`s basic medical care system is still going on.
Enterprises that are implementing the reform shall pay the fees for basic medical care insurance
And for the mutual-aid fund to cover large sums of medical expenses. Such enterprises do not have to pay for overall insurance for
Treatment of serious diseases.
Fees that have to be paid by individual employees are calculated with the average monthly wage of the preceding year for each as the
Base figure. Their enterprises shall deduct the sums from their wages and pay to the concerned sides on their behalf. For them, the fee
For insurance against old age accounts for 7% of their wages, for basic medical insurance, 2%, and for insurance against
Unemployment, 0.5%. each employees in a given enterprise shall pay RMB3 yuan a month to the enterprise’ mutual-aid fund to cover
Large sums of medical expenses.