EMPLOYMENT CONTRACT LAW OF CHINAAdopted at the 28th Session of the Standing mittee of the 10th National Peoples Congress on June 29, 20XXEffective from January 1, 20XXUnofficial Translation Prepared by Baker McKenzieCONTENTSAPTER 1 GENERAL PROVISIONS APTER 2 CONCLUSION OF EMPLOYMENT CONTRACTS APTER 3 PERFORMANCE AND AMENDMENT OF EMPLOYMENT CONTRACTS APTER 4 TERMINATION AND ENDING OF EMPLOYMENT CONTRACTS APTER 5 SPECIAL PROVISIONS SECTION 1 COLLECTIVE CONTRACTS SECTION 2 PLACEMENt APTER 6 MONITORING INSPECTIONS APTER 7 LEGAL LIABILITY APTER 8 SPLEMENTARY PROVISIONS APTER 1 GENERAL PROVISIONSArticle 1This Law has been formulated in order to improve the employment contract system, to specify the rights and obligations of the parties to employment contracts, to protect the lawful rights and interests of Employees and to build and develop harmonious and stable employment relationships. Article 2This Law governs the establishment of employment relationships between, and the conclusion, performance, amendment, termination and ending of employment contracts by, organizations su as enterprises, individual economic organizations and private non-enterprise units in the Peoples Republic of China (“Employers) on the one hand and Employees in the Peoples Republic of China on the other hand. The conclusion, performance, amendment, termination and ending of employment contracts by state authorities, institutions or social organizations on the one hand and Employees with whom they establish employment relationships on the other hand, shall be handled pursuant to this Law.Article 3The conclusion of employment contracts shall ply with the principles of lawfulness, fairness, equality, free will, negotiated consensus and good faith. A lawfully concluded employment contract is binding, and both the Employer and the Employee shall perform their respective obligations stipulated therein. Article 4Employers shall establish and improve internal rules and regulations, so as to ensure that Employees enjoy their labor rights and perform their labor obligations. When an Employer formulates, revises or decides on rules and regulations, or material matters, that have a direct bearing on the immediate interests of its Employees, su as those concerning pensation, work hours, rest, leave, work safety and hygiene, insurance, benefits, employee training, work discipline or work quota management, the same shall be discussed by the employee representative congress or all the employees. The employee representative congress or all the employees, as the case may be, shall put forward a proposal and ments, whereon the matter shall be determined through consultations with the Labor Union or employee representatives conducted on a basis of equality. If, during the implementation of an Employers rule or regulation or decision on a crucial decision, the Labor Union or an employee is of the opinion that the same is inappropriate, it or he is entitled to municate su opinion to the Employer, and the rule, regulation or decision shall be improved by making amendments after consultations. Rules and regulations, and crucial decisions, that have a direct bearing on the immediate interests of Employees shall be made public or be municated to the Employees by the Employer. Article 5The labor administration authorities of Peoples Governments at the county level and above, together with the Labor Union and enterprise representatives, shall establish a prehensive tri-partite meani for the coordination of employment relationships, in order to jointly study and resolve major issues concerning employment relationships. Article 6A Labor Union shall assist and guide Employees in the conclusion of employment contracts with their Employer and the performance thereof in accordance with the law, and establish a collective bargaining meani with the Employer in order to safeguard the lawful rights and interests of Employees. APTER 2 CONCLUSION OF EMPLOYMENT CONTRACTSArticle 7An Employers employment relationship with an Employee is established on the date it starts employing the Employee. An Employer shall keep a register of employees, for reference purposes. Article 8When an Employer employs an Employee, it shall truthfully inform him as to the content of the work, the working conditions, the place of work, occational hazards, production safety conditions, pensation and other matters whi the Employee requests to be informed about. The Employer has the right to learn from the Employee basic information whi directly relates to the employment contract, and the Employee shall truthfully provide the same. Article 9When employing an Employee, an Employer may not retain the Employees resident ID card or other certificates, nor may it require him to provide guarantee or collect property from him under some other guise. Article 10To est