Shanghai Municipality, Circular on Several Issues Concerning the Implementation of the «Shanghai Municipality, Labour Contract Regulations» (3)

Issued: October 17 2005

Main contents: Where the service term and liquidated damages for breach of contract are agreed upon by both parties to a labour contract in accordance with the prevailing related state and municipal provisions prior to implementation of the Shanghai Municipality, Labour Contract Regulations (the Regulations), the parties shall continue to perform the particulars of the contract after the implementation of the Regulations (Article 2). Employers whose business licences are revoked by the administrative departments for industry and commerce and in a state where production operations are impossible, if the employer or workers request to terminate the labour contract, it may be handled with reference to Item Three of the first paragraph of Article 37 and Item Six of the first paragraph of Article 42 of the Regulations (Article 6). Where a written labour contract shall have been concluded but was not concluded and the employer terminates the labour relationship in accordance with Article 40 of the Regulations, the employer shall pay compensation fees to workers for the period for which a labour contract was not concluded. However, in the case where workers comply with the conditions stipulated in Articles 30 and 33 of the Regulations, employers may withhold payment of economic compensation (Article 10).
Related legislation: Shanghai Municipality, Labour Contract Regulations, Nov 15 2001, CLP 2001 No.10 p.13; Shanghai Municipality, Circular on the Issue of the«Provisions Concerning the Standard for Medical Treatment Periods For Workers in the Municipality Suffering from Illness or non-work Related Injury While Performing the Labour Contract» , 2002 and PRC Labour Law, July 5 1994, CLP 1994 No.7 p.21