Regulations of Shanghai Municipality on Labour Contract

(Adopted at the Thirty-third Session of the Standing Committee of the Eleventh Shanghai

Municipal People's Congress on November 15, 2001)

Chapter ⅠGeneral Provisions

Article 1

For the purpose of adjusting labor relationship, establishing and upholding the labor contract system adapted to the socialist market economy, these Regulations are formulated in accordance with "The Labor Law of the People's Republic of China" and other relevant laws and administrative regulations with consideration of the actual situations in this Municipality.

Article 2

These Regulations apply to the employer units in the administrative area of this Municipality, including enterprises, self-employed workers, economic organizations, and state organs and institutions, and mass organizations, etc., (hereinafter jointly referred to as employer units), that establish or form labor contract relationship with the employees.

Article 3

The labor contract is the agreement concluded between the employee and the employer-unit that establishes labor relationship and specifies the rights and obligations of both parties.

Article 4

The labor contract shall be concluded in writing with the exception that is specially stipulated in these Regulations.

Article 5

The conclusion and alteration of the labor contract shall follow the principle of equality and negotiation to reach uniformity on one's own will, and shall satisfy the stipulations of laws, regulations and relevant rules.

A labor contract shall have immediately binding force once it is legally concluded, and the parties to the contract shall perform the obligations stipulated in the labor contract.

Article 6

The trade union shall provide guidance and help to the employee concerning the labor contract, and supervise the employer-units in their performance of the labor contract. In case that an employer-unit infringes an employee's legitimate rights and interests, the trade union shall negotiate with the employer-unit on behalf of the employee, and protect the legitimate rights and interests of the employee in the conclusion and performance of the labor contract according to law.

Article 7

The administrative department of labor security shall have the duty to guide, supervise and inspect the carrying out of the labor contract system.

Chapter ⅡThe Conclusion of the Labor Contract

Article 8

Before the conclusion of a labor contract, the employee has the right to know the relevant regulations and rules, labor conditions and payments of the employer-unit. The employer-unit shall illustrate them strictly according to the facts.

When employing laborers, the employer-unit has the right to know the health condition, knowledge and ability, and working experience of the employee. The employee shall state them strictly according to the facts.

Article 9

The text of the labor contract may be provided by the employer-unit, or be drawn up by both the employer and the employee. In case that the employer-unit provides the text, the principle of fairness shall be followed and shall not infringe upon the legitimate rights and interests of the employee.

The labor contract shall be written in Chinese, and may be coupled with a copy in a foreign language. If both parties to the contract have otherwise agreed, their agreement may be respected. In case that the labor contract is written in both Chinese and a foreign language, and their content differs, the Chinese version shall prevail. The labor contract shall have two identical copies, each party to the contract shall hold one copy.

Article 10

The labor contract shall contain the following clauses:

1. The valid period of the labor contract;

2. The job descriptions;

3. The labor protections and labor conditions;

4. The payments of remuneration for labor;

5. The labor disciplines;

6. The conditions for the termination of the labor contract; and

7. The liabilities for violation of the stipulations of the labor contract.

Apart from the compulsory clauses provided in the preceding clause, the parties to the contract may form other terms through negotiation in the labor contract.

Article 11

The valid period of employment in the labor contract shall be classified as fixed period, no fixed period, and task/project completion period. The valid period of the labor contract shall be fixed by the employer-unit and the employee through consultation.

Article 12

The labor contract shall become effective upon the date of signature. In case that the parties to the contract have otherwise agreed on the effective date and conditions of the labor contract, such agreement shall be respected.

Article 13