The
foreign business owner in China like you probably have not been to
labor court at least once. Therefore, former employees who bring these
complaints tend to be financially focused – many believe that a company
will settle just to stay out of the courts.
Many
Western companies have taken a stance of going to court and not
settling these disputes to avoid earning a reputation for caving in.
Frustratingly, the thing you ignore will one day become the danger you
will face.
One
companies’ first auctioneer at iPai — the Chinese subsidiary of the
Phoenix-based auction company — offered his resignation, telling the
boss that he wanted to leave Shanghai to return to his hometown to work.
He gave the customary 30 days’ notice and continued to work until his
last day. The boss hired another auctioneer and thought no more of the
matter. Then the company received notice that he had filed a labor
dispute.
In the dispute, he said he had never signed the agreement with the company. If
the judge were to rule for the former employee, the company would owe
him one full year of his substantial pay for not having a signed labor
contract.
Fortunately, the company arrived at court with an original and copy of the document.
If you choose to navigate the rocks and shoals of Chinese employment contracts, here are three tips to keep in mind:
1. Know the labor law and stay on top of changes.
2. Have very specific, detailed job descriptions for your labor contracts.
3. Keep original labor agreements, and keep them secured like the valuable assets they are – or may someday become.
2. Have very specific, detailed job descriptions for your labor contracts.
3. Keep original labor agreements, and keep them secured like the valuable assets they are – or may someday become.
Legal risks are hiding everywhere.
Since China's existing laws and regulations has related to
imperfections, Touch Law Firm suggests you should do the prevention for
your business.
Touch Law Firm provide annual legal counselor service for you. Professional legal advice and solutions can help you avoid all the different risk in China. If you are interested in our annual legal counselor service or other legal service, do not hesitate to contact us at 8620-8355 5515 or email to info@touchlawfirm.com
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