（新劳动法合同）劳动合同法LAWOFTHEPEOPLE'SREPUBLICOFCHINAONEMPLOYMENTCONTRACTS Adoptedatthe28thSessionoftheStandingCommitteeofthe10thNationalPeople'sCongressonJune29,2007EffectivefromJanuary1,2008ByBaker&MCKenzieCHAPTER1GENERALPROVISIONSArticle1ThisLawhasbeenformulatedinordertoimprovetheemploymentcontractsystem,tospecifytherightsand obligationsofthepartiestoemploymentcontracts,toprotectthelawfulrightsandinterestsofEmployeesandtobui ldanddevelopharmoniousandstableemploymentrelationships.Article2ThisLawgovernstheestablishmentofemploymentrelationshipsbetween,andtheconclusion,performan ce,amendment,terminationandendingofemploymentcontractsby,organizationssuchasenterprises,individu aleconomicorganizationsandprivatenon-enterpriseunitsinthePeople’sRepublicofChina(“Employers”)onthe onehandandEmployeesinthePeople’sRepublicofChinaontheotherhand.Theconclusion,performance,amendment,terminationandendingofemploymentcontractsbystateauth orities,institutionsorsocialorganizationsontheonehandandEmployeeswithwhomtheyestablishemploymentr elationshipsontheotherhand,shallbehandledpursuanttothisLaw.Article3Theconclusionofemploymentcontractsshallcomplywiththeprinciplesoflawfulness,fairness,equality,freewill,negotiatedconsensusandgoodfaith.Alawfullyconcludedemploymentcontractisbinding,andboththeEmployerandtheEmployeeshallperformtheirrespectiveobligationsstipulatedtherein.Article4Employersshallestablishandimproveinternalrulesandregulations,soastoensurethatEmployeesenjoytheirlaborrightsandperformtheirlaborobligations.WhenanEmployerformulates,revisesordecidesonrulesandregulations,ormaterialmatters,thathavea directbearingontheimmediateinterestsofitsEmployees,suchasthoseconcerningcompensation,workhours,r est,leave,worksafetyandhygiene,insurance,benefits,employeetraining,workdisciplineorworkquotamanage ment,thesameshallbediscussedbytheemployeerepresentativecongressoralltheemployees.Theemployeer epresentativecongressoralltheemployees,asthecasemaybe,shallputforwardaproposalandcomments,whe reuponthemattershallbedeterminedthroughconsultationswiththeTradeunionoremployeerepresentativesconductedonabasisofequality.If,duringtheimplementationofanEmployer’sruleorregulationordecisiononacrucialmatter,theTradeuni onoranemployeeisoftheopinionthatthesameisinappropriate,itorheisentitledtocommunicatesuchopiniontot heEmployer,andtherule,regulationordecisionshallbeimprovedbymakingamendmentsafterconsultations.Rulesandregulations,anddecisionsonmaterialmatters,thathaveadirectbearingontheimmediateintere stsofEmployeesshallbemadepublicorbecommunicatedtotheEmployeesbytheEmployer.Article5ThelaboradministrationauthoritiesofPeople’sGovernmentsatthecountylevelandabove,togetherwitht heTradeunionandenterpriserepresentatives,shallestablishacomprehensivetri-partitemechanismforthecoo rdinationofemploymentrelationships,inordertojointlystudyandresolvemajorissuesconcerningemploymentrelationships.Article6ATradeunionshallassistandguideEmployeesintheconclusionofemploymentcontractswiththeirEmplo yerandtheperformancethereofinaccordancewiththelaw,andestablishacollectivebargainingmechanismwith theEmployerinordertosafeguardthelawfulrightsandinterestsofEmployees.CHAPTER2CONCLUSIONOFEMPLOYMENTCONTRACTSArticle7AnEmployer’semploymentrelationshipwithaEmployeeisestablishedonthedateitstartsusingtheEmplo yee.AnEmployershallkeeparegisterofemployees,forreferencepurposes.Article8WhenanEmployerhiresaEmployee,itshalltruthfullyinformhimastothecontentofthework,theworkingco nditions,theplaceofwork,occupationalhazards,productionsafetyconditions,laborcompensationandotherma tterswhichtheEmployeerequeststobeinformedabout.TheEmployerhastherighttolearnfromtheEmployeeba sicinformationwhichdirectlyrelatestotheemploymentcontract,andtheEmployeeshalltruthfullyprovidethesame.Article9WhenhiringaEmployee,anEmployermaynotretaintheEmployee’sresidentIDcardorotherpapers,norm ayitrequirehimtoprovidesecurityorcollectpropertyfromhimundersomeotherguise.Article10Toestablishanemploymentrelationship,awrittenemploymentcontractshallbeconcluded.Intheeventthatnowrittenemploymentcontractwasconcludedatthetimeofestablishmentofanemployme ntrelationship,awrittenemploymentcontractshallbeconcludedwithinonemonthafterthedateonwhichtheEmployerstartsusingtheEmployee.WhereanEmployerandaEmployeeconcludeanemploymentcontractbeforetheEmployerstartsusingth eEmployee,theemploymentrelationshipshallbeestablishedonthedateonwhichtheEmployerstartsusingtheEmployee.Article11IntheeventthatanEmployerfailstoconcludeawrittenemploymentcontractwithaEmployeeatthetimeitsst artstousehim,anditisnotclearwhatlaborcompensationwasagreeduponwiththeEmployee,thelaborcompensationofthenewEmployeeshallbedecidedpursuanttotheratespecifiedinthecollectivecontract;wherethereisno collectivecontractorthecollectivecontractissilentonthematter,equalpayshallbegivenforequalwork.Article12Employmentcontractsaredividedintofixed-termemploymentcontracts,open-endedemploymentcontr actsandemploymentcontractstoexpireuponcompletionofacertainjob.Article13A“fixed-termemploymentcontract”isanemploymentcontractwhoseendingdateisagreeduponbytheEmployerandtheEmployee.AnEmployerandaEmployeemayconcludeafixed-termemploymentcontractuponreachinganegotiatedconsensus.Article14An“open-endedemploymentcontract”isanemploymentcontractforwhichtheEmployerandtheEmployeehaveagreednottostipulateadefiniteendingdate.AnEmployerandaEmployeemayconcludeanopen-endedemploymentcontractuponreachinganegotia tedconsensus.IfaEmployeeproposesoragreestorenewhisemploymentcontractortoconcludeanemploymen tcontractinanyofthefollowingcircumstances,anopen-endedemploymentcontractshallbeconcluded,unlesst heEmployeerequeststheconclusionofafixed-termemploymentcontract:(1)TheEmployeehasbeenworkingfortheEmployerforaconsecutiveperiodofnotlessthan10years;(2)whenhisEmployerintroducestheemploymentcontractsystemorthestateownedenterprisethatempl oyshimre-concludesitsemploymentcontractsasaresultofrestructuring,theEmployeehasbeenworkingforthe Employerforaconsecutiveperiodofnotlessthan10yearsandislessthan10yearsawayfromhislegalretirementage;or(3)priortotherenewal,afixed-termemploymentcontractwasconcludedontwoconsecutiveoccasionsan dtheEmployeeisnotcharacterizedbyanyofthecircumstancessetforthinArticle39anditems(1)and(2)ofArticle40hereof.IfanEmployerfailstoconcludeawrittenemploymentcontractwithaEmployeewithinoneyearfromthedate onwhichitstartsusingtheEmployee,theEmployerandtheEmployeeshallbedeemedtohaveconcludedanopen-endedemploymentcontract.Article15An“employmentcontractwithatermtoexpireuponcompletionofacertainjob”isanemploymentcontractin whichtheEmployerandtheEmployeehaveagreedthatthecompletionofacertainjobisthetermofthecontract.AnEmployerandaEmployeemay,uponreachinganegotiatedconsensus,concludeanemploymentcontractwithatermtoexpireuponcompletionofacertainjob.Article16AnemploymentcontractshallbecomeeffectivewhentheEmployerandtheEmployeehavereachedaneg otiatedconsensusthereonandeachofthemhassignedorsealedthetextofsuchcontract.TheEmployerandtheEmployeeshalleachholdonecopyoftheemploymentcontract.Article17Anemploymentcontractshallspecifythefollowingmatters:(1)Thename,domicileandlegalrepresentativeormainpersoninchargeoftheEmployer;(2)Thename,domicileandnumberoftheresidentIDcardorothervalididentitydocumentoftheEmployee;(3)Thetermoftheemploymentcontract;(4)Thejobdescriptionandtheplaceofwork;(5)Workinghours,restandleave;(6)Laborcompensation;(7)Socialinsurance;(8)Laborprotection,workingconditionsandprotectionagainstoccupationalhazards;and(9)Othermatterswhichlawsandstatutesrequiretobeincludedinemploymentcontracts.Inadditiontotherequisitetermsmentionedabove,anEmployerandaEmployeemayagreetostipulateothe rmattersintheemploymentcontract,suchasprobationperiod,training,confidentiality,supplementaryinsuranceandbenefits,etc.Article18Ifadisputearisesduetothefactthattherateorstandardsforlaborcompensationorworkingconditions,etc.a renotexplicitlyspecifiedintheemploymentcontract,theEmployerandtheEmployeemayrenegotiate.Ifthenego tiationsareunsuccessful,theprovisionsofthecollectivecontractshallapply.Ifthereisnocollectivecontractorthe collectivecontractissilentontheissueoflaborcompensation,equalpayshallbegivenforequalwork;ifthereisnoc ollectivecontractorthecollectivecontractissilentontheissueofworkingconditions,therelevantregulationsofthestateshallapply.Article19Ifanemploymentcontracthasatermofnotlessthanthreemonthsbutlessthanoneyear,theprobationperio dmaynotexceedonemonth;ifanemploymentcontracthasatermofmorethanoneyearandlessthanthreeyears,t heprobationperiodmaynotexceedtwomonths;andifanemploymentcontracthasatermofnotlessthanthreeyea rsorisopen-ended,theprobationperiodmaynotexceedsixmonths.AnEmployermaystipulateonlyoneprobationperiodwithanygivenEmployee.Noprobationperiodmaybespecifiedinanemploymentcontractwithatermtoexpireuponcompletionoface rtainjoboranemploymentcontractwithatermoflessthanthreemonths.Theprobationperiodshallbeincludedinthetermoftheemploymentcontract.Ifanemploymentcontractpro videsforaprobationperiodonly,thenthereisnoprobationperiodandthetermconcernedshallbethetermoftheemploymentcontract.Article20ThewagesofaEmployeeonprobationmaynotbelessthanthelowestwagelevelforthesamejobwiththeE mployerorlessthan80percentofthewageagreeduponintheemploymentcontract,andmaynotbelessthanthem inimumwagerateintheplacewheretheEmployerislocated.Article21AnEmployermaynotterminateanemploymentcontractduringtheprobationperiodunlesstheEmployeei scharacterizedbyanyofthecircumstancessetforthinArticle39anditems(1)and(2)ofArticle40hereof.IfanEmpl oyerterminatesanemploymentcontractduringtheprobationperiod,itshallexplainthereasonstotheEmployee.Article22IfanEmployerprovidesspecialfundingforaEmployee’strainingandgiveshimprofessionaltechnicaltraini ng,itmayconcludeanagreementspecifyingatermofservicewithsuchEmployee.IftheEmployeebreachestheagreementonthetermofservice,heshallpayliquidateddamagestotheEmpl oyerasagreed.ThemeasureoftheliquidateddamagesmaynotexceedthetrainingexpensespaidbytheEmploy er.TheliquidateddamagesthattheEmployerrequirestheEmployeetopaymaynotexceedtheportionofthetraini ngexpensesallocabletotheunperformedportionofthetermofservice.ThereachingofagreementonatermofservicebetweentheEmployerandtheEmployeedoesnotaffectther aisingoftheEmployee’slaborcompensationduringthetermofserviceaccordingtothenormalwageadjustme ntmechanism.Article23AnEmployerandaEmployeemayincludeintheiremploymentcontractprovisionsonconfidentialitymatter srelatingtomaintainingtheconfidentialityofthetradesecretsoftheEmployerandtointellectualproperty.IfaEmployeehasaconfidentialityobligation,theEmployermayagreewiththeEmployeeoncompetitionre strictionprovisionsintheemploymentcontractorconfidentialityagreement,andstipulatethattheEmployershall payfinancialcompensationtotheEmployeeonamonthlybasisduringthetermofthecompetitionrestrictionaftert heterminationorendingoftheemploymentcontract.IftheEmployeebreachesthecompetitionrestrictionprovisi ons,heshallpayliquidateddamagestotheEmployerasstipulated.Article24ThepersonnelsubjecttocompetitionrestrictionsshallbelimitedtotheEmployer’sseniormanagement,se niortechniciansandotherpersonnelwithaconfidentialityobligation.Thescope,territoryandtermofthecompetiti onrestrictionsshallbeagreeduponbytheEmployerandtheEmployee,andsuchagreementshallnotviolatelawsandregulations.Theterm,countedfromtheterminationorendingoftheemploymentcontract,forwhichapersonasmention edintheprecedingparagraphissubjecttocompetitionrestrictionsintermsofhisworkingforacompetingEmploye rthatproducesthesametypeofproductsorisengagedinthesametypeofbusinessashiscurrentEmployer,orinter msofhisestablishinghisownbusinesstoproducethesametypeofproductsorengageinthesametypeofbusiness,shallnotexceedtwoyears.Article25WiththeexceptionofthecircumstancesspecifiedinArticles22and23hereof,anEmployermaynotstipulat ewithaEmployeeprovisionsonthebearingofliquidateddamagesbytheEmployee.Article26Anemploymentcontractshallbeinvalidorpartiallyinvalidif:(1)Apartyusessuchmeansasdeceptionorcoercion,ortakesadvantageoftheotherparty’sdifficulties,toc ausetheotherpartytoconcludeanemploymentcontract,ortomakeanamendmentthereto,thatiscontrarytothatparty’strueintent;(2)TheEmployerdisclaimsitslegalliabilityordeniestheEmployeehisrights;or(3)Mandatoryprovisionsoflawsoradministrativestatutesareviolated.Iftheinvalidityorpartialinvalidityoftheemploymentcontractisdisputed,itshallbeconfirmedbyalabordisputearbitrationinstitutionoraPeople’sCourt.Article27Ifcertainprovisionsofanemploymentcontractareinvalidandsuchinvaliditydoesnotaffectthevalidityofth eremainingprovisions,theremainingprovisionsshallremainvalid.Article28IfanemploymentcontractisconfirmedasinvalidandtheEmployeehasalreadyperformedlabor,theEmplo yershallpaytheEmployeelaborcompensation.Theamountoflaborcompensationshallbedeterminedwithrefer encetothelaborcompensationofEmployeesinthesameorasimilarpositionwiththeEmployer.CHAPTER3PERFORMANCEANDAMENDMENTOFEMPLOYMENTCONTRACTSArticle29TheEmployerandtheEmployeeshalleachfullyperformits/hisobligationsinaccordancewiththeemploymentcontract.Article30EmployersshallpaytheirEmployeeslaborcompensationontimeandinfullinaccordancewiththeemploymentcontractsandstateregulations.IfanEmployerfallsintoarrearswiththepaymentoflaborcompensationorfailstomakepaymentinfull,theE mployeemay,inaccordancewiththelaw,applytothelocalPeople’sCourtforanordertopay;andthePeople’sCourtshallissuesuchorderinaccordancewiththelaw.Article31Employersshallstrictlyimplementtheworkquotastandardsandmaynotcompelorinadisguisedmannerc ompelEmployeestoworkovertime.IfanEmployerarrangesforaEmployeetoworkovertime,itshallpayhimovertimepayinaccordancewiththerelevantstateregulations.Article32Employeesshallnotbeheldinbreachoftheiremploymentcontractsiftheyrefusetoperformdangerousope rationsthatareinstructedinviolationofregulationsorperemptorilyorderedbymanagementstaffoftheEmployer.Employeeshavetherighttocriticize,reporttotheauthoritiesorlodgeaccusationsagainsttheirEmployersi nrespectofworkingconditionsthatendangertheirlivesorhealth.Article33Changessuchachangeinthename,legalrepresentativeormainpersoninchargeof,oran(the)investor(s)i n,anEmployershallnotaffecttheperformanceofitsemploymentcontracts.Article34IfanEmployerismergedordivided,etc.,itsexistingemploymentcontractsshallremainvalidandcontinuet obeperformedbytheEmployer(s)whichsucceededtoitsrightsandobligationsArticle35AnEmployerandaEmployeemayamendtheprovisionsoftheiremploymentcontractiftheysoagreeafterc onsultations.Amendmentstoanemploymentcontractshallbemadeinwriting.TheEmployerandtheEmployeeshalleachholdonecopyoftheamendedemploymentcontract.CHAPTER4TERMINATIONANDENDINGOFEMPLOYMENTCONTRACTSArticle36AnEmployerandaEmployeemayterminatetheiremploymentcontractiftheysoagreeafterconsultations.Article37AEmployeemayterminatehisemploymentcontractupon30days’priorwrittennoticetohisEmployer.Duri nghisprobationperiod,aEmployeemayterminatehisemploymentcontractbygivinghisEmployerthreedays’priornotice.Article38AEmployeemayterminatehisemploymentcontractifhisEmployer:(1)Failstoprovidethelaborprotectionorworkingconditionsspecifiedintheemploymentcontract;(2)Failstopaylaborcompensationinfullandontime;(3)FailstopaythesocialinsurancepremiumsfortheEmployeeinaccordancewiththelaw;(4)Hasrulesandregulationsthatviolatelawsorregulations,therebyharmingtheEmployee’srightsandinterests;(5)causestheemploymentcontracttobeinvalidduetoacircumstancespecifiedinthefirstparagraphofArticle26hereof;(6)GivesrisetoanothercircumstanceinwhichlawsoradministrativestatutespermitaEmployeetoterminatehisemploymentcontract.IfanEmployerusesviolence,threatsorunlawfulrestrictionofpersonalfreedomtocompelaEmployeetowo rk,orifaEmployeeisinstructedinviolationofrulesandregulationsorperemptorilyorderedbyhisEmployertoperfo rmdangerousoperationswhichthreatenhispersonalsafety,theEmployeemayterminatehisemploymentcontractforthwithwithoutgivingpriornoticetotheEmployer.Article39AnEmployermayterminateanemploymentcontractiftheEmployee:(1)Isprovedduringtheprobationperiodnottosatisfytheconditionsforemployment;(2)MateriallybreachestheEmployer’srulesandregulations;(3)Commitsseriousderelictionofdutyorpracticesgraft,causingsubstantialdamagetotheEmployer;(4)hasadditionallyestablishedanemploymentrelationshipwithanotherEmployerwhichmateriallyaffect sthecompletionofhistaskswiththefirst-mentionedEmployer,orherefusestorectifythematterafterthesameisbroughttohisattentionbytheEmployer;(5)causestheemploymentcontracttobeinvalidduetothecircumstancespecifiedinitem(1)ofthefirstparagraphofArticle26hereof;or(6)Hashiscriminalliabilitypursuedinaccordancewiththelaw.Article40AnEmployermayterminateanemploymentcontractbygivingtheEmployeehimself30days’priorwrittennotice,oronemonth’swageinlieuofnotice,if:(1)afterthesetperiodofmedicalcareforanillnessornon-work-relatedinjury,theEmployeecanengageneitherinhisoriginalworknorinotherworkarrangedforhimbyhisEmployer;(2)TheEmployeeisincompetentandremainsincompetentaftertrainingoradjustmentofhisposition;or(3)Amajorchangeintheobjectivecircumstancesrelieduponatthetimeofconclusionoftheemploymentco ntractrendersitunperformableand,afterconsultations,theEmployerandEmployeeareunabletoreachagreementonamendingtheemploymentcontract.Article41Ifanyofthefollowingcircumstancesmakesitnecessarytoreducetheworkforceby20personsormoreorby anumberofpersonsthatislessthan20butaccountsfor10percentormoreofthetotalnumberoftheenterprise’sem ployees,theEmployermayreducetheworkforceafterithasexplainedthecircumstancestoitsTradeunionortoall ofitsemployees30daysinadvance,hasconsideredtheopinionsoftheTradeunionortheemployeesandhassubs equentlyreportedtheworkforcereductionplantothelaboradministrationdepartment:(1)RestructuringpursuanttotheEnterpriseBankruptcyLaw;(2)Seriousdifficultiesinproductionand/orbusinessoperations;(3)Theenterpriseswitchesproduction,introducesamajortechnologicalinnovationorrevisesitsbusinessmethod,and,afteramendmentofemploymentcontracts,stillneedstoreduceitsworkforce;or(4)Anothermajorchangeintheobjectiveeconomiccircumstancesrelieduponatthetimeofconclusionoftheemploymentcontracts,renderingthemunperformable.Whenreducingtheworkforce,theEmployershallretainwithprioritypersons:(1)WhohaveconcludedwiththeEmployerfixed-termemploymentcontractswitharelativelylongterm;(2)Whohaveconcludedopen-endedemploymentcontractswiththeEmployer;or(3)Whoaretheonlyonesintheirfamiliestobeemployedandwhosefamilieshaveanelderlypersonoraminorforwhomtheyneedtoprovide.IfanEmployerthathasreduceditsworkforcepursuanttothefirstparagraphhereofhiresagainwithinsixmo nths,itshallgivenoticetothepersonsdismissedatthetimeofthereductionand,allthingsbeingequal,hirethemonapreferentialbasis.Article42AnEmployermaynotterminateanemploymentcontractpursuanttoArticle40orArticle41hereofiftheEmployee:(1)isengagedinoperationsexposinghimtooccupationaldiseasehazardsandhasnotundergoneapre-de partureoccupationalhealthcheck-up,orissuspectedofhavingcontractedanoccupationaldiseaseandisbeingdiagnosedorundermedicalobservation;(2)Hasbeenconfirmedashavinglostorpartiallylosthiscapacitytoworkduetoanoccupationaldiseasecontractedorawork-relatedinjurysustainedwiththeEmployer;(3)Hascontractedanillnessorsustainedanon-work-relatedinjury,andthesetperiodofmedicalcarethereforehasnotexpired;(4)Isafemaleemployeeinherpregnancy,confinementornursingperiod;(5)HasbeenworkingfortheEmployercontinuouslyfornotlessthan15yearsandislessthan5yearsawayfromhislegalretirementage;(6)Findshimselfinothercircumstancesstipulatedinlawsoradministrativestatutes.Article43WhenanEmployeristoterminateanemploymentcontractunilaterally,itshallgivetheTradeunionadvance noticeofthereasontherefore.IftheEmployerviolateslaws,administrativestatutesortheemploymentcontract,th eTradeunionhastherighttodemandthattheEmployerrectifythematter.TheEmployershallstudytheTradeunio n’sopinionsandnotifytheTradeunioninwritingastotheoutcomeofitsh andlingofthematter.Article44Anemploymentcontractshallendif:(1)Itstermexpires;(2)TheEmployeehascommenceddrawinghisbasicoldageinsurancepensioninaccordancewiththelaw;(3)TheEmployeedies,orisdeclareddeadormissingbyaPeople’sCourt;(4)TheEmployerisdeclaredbankrupt;(5)TheEmployerhasitsbusinesslicenserevoked,isorderedtocloseoriscloseddown,ortheEmployerdecidesonearlyliquidation;or(6)Anothercircumstancespecifiedinlawsoradministrativestatutesarises.Article45IfanemploymentcontractexpiresandanyofthecircumstancesspecifiedinArticle42hereofapplies,thetermoftheemploymentcontractshallbeextendeduntiltherelevantcircumsta nceceasestoexist,atwhichpointthecontractshallend.However,mattersrelatingtotheendingoftheemploymen tcontractofaEmployeewhohaslostorpartiallylosthiscapacitytoworkasspecifiedinitem(2)ofArticle42hereofsh allbehandledinaccordancewithstateregulationsonwork-relatedinjuryinsurance.Article46Inanyofthefollowingcircumstances,theEmployershallpaytheEmployeeseverancepay:(1)TheemploymentcontractisterminatedbytheEmployeepursuanttoArticle38hereof;(2)TheemploymentcontractisterminatedaftersuchterminationwasproposedtotheEmployeebytheEmployerpursuanttoArticle36hereofandthepartiesreachedagreementthereonafterconsultations;(3)TheemploymentcontractisterminatedbytheEmployerpursuanttoArticle40hereof;(4)TheemploymentcontractisterminatedbytheEmployerpursuanttothefirstparagraphofArticle41hereof;(5)Theemploymentcontractisafixed–termcontractthatendspursuanttoitem(1)ofArticle44hereof,unlesstheEmployeedoesnotagreetorenewthecontracteventhoughtheconditionsoffer edbytheEmployerarethesameasorbetterthanthosestipulatedinthecurrentcontract;(6)Theemploymentcontractendspursuanttoitem(4)or(5)ofArticle44hereof;(7)Othercircumstancesspecifiedinlawsoradministrativestatutes.Article47AEmployeeshallbepaidseverancepaybasedonthenumberofyearsworkedwiththeEmployerattherateo fonemonth’swageforeachfullyearworked.Anyperiodofnotlessthansixmonthsbutlessthanoneyearshallbeco untedasoneyear.TheseverancepaypayabletoaEmployeeforanyperiodoflessthansixmonthsshallbeone-halfofhismonthlywages.IfthemonthlywageofaEmployeeisgreaterthanthreetimestheaveragemonthlywageofemployeesinthe Employer’sareaaspublishedbythePeople’sGovernmentatthelevelofmunicipalitydirectlyunderthecentralgov ernmentormunicipalitydividedintodistrictsofthearea1wheretheEmployerislocated,theratefortheseverancep aypaidtohimshallbethreetimestheaveragemonthlywageofemployeesandshallbefornotmorethan12yearsofwork.ForthepurposesofthisArticle,theterm“monthlywage”meanstheEmployee’saveragemonthlywageforth e12monthspriortotheterminationorendingofhisemploymentcontract.Article48IfanEmployerterminatesorendsanemploymentcontractinviolationofthisLawandtheEmployeedemandscontinuedperformanceofsuchcontract,theEmployershallcontinueperf ormingthesame.IftheEmployeedoesnotdemandcontinuedperformanceoftheemploymentcontractorifcontinuedperformanceoftheemploymentcontracthasbecomeimpossible,theEmployershallpaydamagespursuanttoArticle87hereof.Article49ThestatewilltakemeasurestoestablishacomprehensivesystemthatenablesEmployees’socialinsur an ceaccountstobetransferredfromoneregiontoanotherandtobecontinuedinsuchotherregion.Article50Atthetimeofterminationorendingofanemploymentcontract,theEmployershallissueaproofofterminatio norendingoftheemploymentcontractand,within15days,carryouttheproceduresforthetransferoftheEmployee’sfileandsocialinsuranceaccount.TheEmployeeshallcarryouttheproceduresforthehandoverofhisworkasagreedbytheparties.Ifrelevant provisionsofthisLawrequiretheEmployertopayseverancepay,itshallpaythesameuponcompletionoftheproceduresforthehandoverofthework.TheEmployershallkeepterminatedorendedemploymentcontractsonfilefornotlessthantwoyears,forreferencepurposes.CHAPTER5SPECIALPROVISIONSSECTION1COLLECTIVECONTRACTArticle51Afterbargainingonanequalbasis,enterpriseemployees,asoneparty,andtheirEmployermayconcludea collectivecontractonsuchmattersaslaborcompensation,workinghours,rest,leave,worksafetyandhygiene,in surance,benefits,etc.Thedraftofthecollectivecontractshallbepresentedtotheemployeerepresentativecongressoralltheemployeesfordiscussionandapproval.AcollectivecontractshallbeconcludedbytheTradeunion,onbehalfoftheenterprise’semployees,andthe Employer.IftheEmployerdoesnotyethaveaTradeunion,itshall1Translator’snote:Thephrase“ofthearea”doesnotappearintheChinesetext.Ithasbeenaddedbyusinviewofthecontext.ConcludethecollectivecontractwitharepresentativeputforwardbytheEmployeesundertheguidanceoftheTradeunionatthenexthigherlevel.Article52Enterpriseemployees,asoneparty,andtheirEmployermayenterintospecializedcollectivecontractsadd ressinglaborsafetyandhygiene,protectionoftherightsandinterestsoffemaleemployees,thewageadjustmentmechanism,etc.Article53Industry-wideorarea-widecollectivecontractsmaybeconcludedbetweentheTradeunionontheonehan dandrepresentativesonthesideoftheenterprisesontheotherhandinindustriessuchasconstruction,mining,cateringservices,etc.withinareasbelowthecountylevel.Article54。