| TRIAL MEASURES GOVERNING THE ALLOCATION BY SINO-FOREIGN JOINT EQUITY ENTERPRISES OF UNEMPLOYMENT INSURANCE FUNDS FOR CHINESE PERSONNEL AWAITING EMPLOYMENT AND THE RECEIPT OF UNEMPLOYMENT RELIEF FUNDS BY THE CHINESE PERSONNEL |
| Sunday,January 31,1988 Posted: 14:38 BJT(0638 GMT) |
(Valid From:1988.01.31) These Trial Measures are formulated in accordance with the provisions of Article 33 of the Regulations of Shanghai Municipality on Labour and Personnel Administration in Sino-foreign Joint Equity Enterprises, promulgated by the Shanghai Municipal People's Congress, to outline procedures for issues such as the payment of unemployment insurance premiums by Sino-foreign joint equity enterprises in Shanghai Municipality (hereinafter referred to as joint enterprises), the termination of joint enterprise, the dismissal of employees under the labour contract system and the receipt of unemployment relief funds by persons awaiting employment. 1. Unemployment insurance premiums shall be paid by joint enterprises in accordance with regulations in order to ensure that the basic living requirements of Chinese personnel awaiting employment are met. A joint enterprise shall each month pay the local district or county labour service centre an unemployment insurance premium sufficient to cover all of its Chinese employees. 2. The amount of the premium payable shall be based on the number of Chinese personnel who received labour remuneration from the enterprise at the end of the previous month, with the calculation being the number of persons multiplied by 1% of the average monthly wage paid by the various enterprises owned by the State throughout the Municipality (a monthly figure of 85 yuan in 1988). 3. Payments shall be made monthly from 1 April 1988, with each payment to be made before or on the 10th of each month. 4. With regard to payment procedures, a joint enterprise shall use a Bank Commission Payment Slip to pay the unemployment insurance premium for its personnel and shall clearly write the number of Chinese personnel which it employed at the end of the previous month in the column titled "usage". After receiving the unemployment insurance premium paid by a joint enterprise, the bank with which the enterprise holds an account shall promptly transfer the amount into the unemployment insurance fund deposit account of the local district or county labour service centre. 5. If a joint enterprise fails to pay the unemployment insurance premium on time, an additional late payment fine, to be calculated daily from the 11th day of each month at 0.1% of the amount owing, shall also be collected. In this case, when completing the Bank Commission Payment Slip, the late payment fine to be imposed in addition to the unemployment insurance premium payment shall be clearly stated in the column titled "usage" to enable the bank to carry out fund transfer procedures. The additional late payment fine shall be listed as expenses in the enterprise's after-tax profits. 6. In the case of a small minority of enterprises which repeatedly fail to pay the unemployment insurance premium, the Municipal Labour Bureau, after investigation and verifying the details, may authorise the withholding of the necessary funds by issuing the relevant bank with an official letter stating the name of the enterprise, its bank account number, the amount to be deducted, the reason and the collection certificate of the recipient organ on which is stated the respective organ's name and band account number. In individual cases of fraud, non-payment or insufficient payment of unemployment insurance premiums by joint enterprises, the requisite fines shall be imposed in accordance with the seriousness of the case. 7. A joint enterprise which terminates its operations or dismisses personnel employed under the labour contract system shall, in accordance with the relevant provisions of the Regulations, complete in triplicate a Notice of Employment Termination which is uniformly drafted and printed by the Municipal Labour Bureau. It shall also state clearly the nature of the enterprise and the source of recruitment of the contracted employees. One copy of the Notice shall be kept by the enterprise, one copy shall be given to the individual person contracted under the labour contract system and one copy shall be kept together with other personal background information on the employee and, depending on the source of recruitment, shall be sent to the local district labour service company in the area of domicile of the dismissed employee or to the Chinese party to the investment project, which in turn shall submit the information to its higher level department in charge. 8. On the termination of an enterprise or dismissal of personnel employed under the labour contract system, in addition to the joint enterprise undertaking worker unemployment registration procedures with the local district administration by completing a Notice of Employment Termination, it shall also fill in on the Public Labour Force Registration form and the Labour Manual such details as the date of commencement and termination of the labour contract, the reason for employment termination, the average monthly wage received by the employee over the past two years, his technical grade and the amount of the living allowance provided. In the absence of a Public labour Force Registration Form or Labour Manual, the neighbourhood, township or village labour service centre shall add the relevant details to the Notice of Employment Termination when the person previously employed under the labour contract system goes to the neighbourhood, township or village labour service centre to undertake worker unemployment registration procedures. 9. When the position of personnel employed under the labour contract system is terminated or their labour contract is cancelled, a person who held local residential registration when originally recruited shall register or undertake worker unemployment registration with the labour service centre in his local residential district, based on the Notice of Employment Termination issued by the enterprise and the individual's own permanent residence booklet. A person who was originally recruited from a rural area shall return to work in the countryside. If a person was originally employed by the Chinese party to the joint venture or was recommended by the enterprise's higher level department in charge for recruitment, the aforesaid units shall make arrangements for employment elsewhere, based on the Notice of Employment Termination. Persons with academic qualifications at the level of polytechnic school or above may also register with the Personnel Bureau's Qualified Persons' Exchange Service Centre by presenting their formal schooling records. 10. All persons with Shanghai Municipality residence registration who were employed by a joint enterprise which terminated its operations or who have had their labour contract terminated and have already registered with the labour service centre or undertaken procedures for worker unemployment registration may, in accordance with regulations, receive unemployment relief funds and a medical treatment subsidy from the neighbourhood, township or village labour service centre in the area of their residency registration. 11. The standard for unemployment relief funds shall be based on an individual's average monthly wage for the two years prior to their leaving a joint enterprise. If the base amount exceeds the average monthly employee wage which the enterprise pays as an unemployment insurance premium, it shall be calculated uniformly on the average monthly wage of enterprises in Shanghai Municipality owned by the State (currently 85 yuan per month) and shall be issued in the following manner: In accordance with the relevant provisions, personnel with a service record of five years or more who are unemployed as the result of the termination of an enterprise or the cancellation of a labour contract shall receive unemployment relief funds for a maximum of 24 months, of which the payment each month for the period between one month and 12 months shall be 75% of the individual's average monthly wage and the period between 13 months and 24 months shall be 50% of the individual's average monthly wage. A person with a record of service of less than five years shall receive unemployment relief funds for a maximum of 12 months, with the amount paid each month being 75% of the individual's average monthly wage. In the case of persons whose labour contracts are cancelled as the result of their violating labour discipline, those with a record of service of five years or more shall receive unemployment relief funds for a maximum of 24 months, of which the payment for each month for the period between one month and 12 months shall be 60% of the individual's average monthly wage and the period between 13 months and 24 months shall be 50% of the individual's average monthly wage. Those with a record of service of less than five years shall receive unemployment relief funds for a maximum of 12 months, with the amount paid each month being 60% of the individual's average monthly wage. The monthly living allowance paid by a joint enterprise shall be deducted from the amount of unemployment relief funds issued. If the amount of unemployment relief funds to be paid each month is less than 30 yuan, a uniform amount of 30 yuan shall be issued. 12. If a person awaiting employment undertakes temporary or seasonal work, the payment of unemployment relief funds shall be suspended temporarily. At the end of the period of employment, unemployment relief funds may continue to be received in line with the original period of unemployment relief granted. 13. A person receiving unemployment relief funds who becomes ill during this period, may receive medical treatment at the local district hospital in the area of his residency registration (or usual place of residence) or at a designated hospital and may apply for a reimbursement of 70% of the medical costs from the neighbourhood, township or village labour service centre. In the event of a person having difficulty paying the remaining 30% of costs, the circumstances shall be taken into consideration and in a small number of cases assistance may be granted. 14. Unemployment relief funds and medical treatment subsidies shall not be issued in any of the following instances: (1) if person leaves a position without the approval of the joint enterprise; (2) if a person's name is removed from the list of employees of the enterprise, or the person is discharged, undergoes labour re-education or receives a sentence; (3) if a person is continuously employed for less than one year before unemployment. 5. Unemployment relief funds shall be discontinued in any of the following instances: (1) if a person is already re-employed (including involvement in the various types of collective economic organisations or self-employment); (2) if participation in signing on for recruitment or employment introductions by the labour and personnel bureau are twice refused without valid reason; (3) if the person undergoes labour re-education or receives a sentence during the period of unemployment. 16. If a person awaiting employment uses illegal means to obtain unemployment relief benefits, the total amount of illegal income received through unemployment relief funds and medical treatment subsidies shall be recovered. 17. These Measures shall also apply to Sino-foreign co-operative enterprises and foreign investment enterprises, as well as Overseas Chinese, Hong Kong, Macao and Taiwanese companies, enterprises, other economic entities and individuals who invest in and establish enterprises in Shanghai Municipality. 18. The Shanghai Municipal Labour Bureau shall be responsible for the interpretation of these Measures. |
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