Shanghai Municipality, Several Issues Concerning the Implementation of the «Shanghai Municipality, Labour Contracts Regulations»Circular (2)

Issued: January 5 2004

Main contents: If a worker has been working with the same employer continuously for 10 years or more and both parties agree to continue the labour contract upon expiry, the worker may request to conclude a labour contract with an open term and the employer shall conclude such contract with the worker (Section One). In the case of change to another organizational structure, restructuring or asset reorganization, the labour contract may be continued with the new employer, or may be changed or terminated after consultation of the two parties, or otherwise agreed by both parties (Section Two). Section Four states that a worker may terminate the non-compete clause if the employer fails to pay the agreed economic compensation. The Circular also clarifies issues where the period of service is longer than the term of the labour contract (Section Three), on compensation for failure to complete the formalities for withdrawal from work in a timely manner (Section Five), and on informing the labour union when the employer unilaterally terminates the labour contract (Section Six).
Related legislation: Shanghai Municipality, Labour Contracts Regulations, Nov 15 2001, CLP 2001 No.10 p13