Guangzhou City, Urgent Circular on Strengthening the Administration of Mass Layoffs by Employers
广州市关于加强对用人单位规模性裁员管理的紧急通知
January 31, 2008 | BY
clpstaff &clp articles &Guangzhou issued urgent circular to prevent companies from getting around the PRC Employment Contract Law.
Issued: December 14 2007
Applicability: This Circular shall apply to enterprises, family proprietorships, private non-enterprise work units, state authorities, public institutions and social organizations under Guangzhou city or under a level below the city (hereinafter collectively referred to as "Employers") that terminate or end employment contracts or terminate actual employment relationships (Terminate Employment Relationships) under guises such as dismissal, proposing resignation by the workers, changing the entity that acts as employer (including a change into a temp agency or labour contractor), or amending its employment contracts, in each case in order to carry out mass layoffs, regardless of whether the relevant workers are re-employed after such a layoff, or the relevant workers are used again by the same work unit after a different Employer enters into employment contracts with them (Article 1).
Main Contents: A mass layoff by an Employer must satisfy at least one of the following statutory conditions:
(1) the Employer is on the verge of bankruptcy or is ordered to undergo statutory reorganization by a people's court; or
(2) the Employer is facing serious difficulties in its production and operations and falling within the scope of troubled enterprises as determined by the city government.
If an Employer does not satisfy either of the foregoing statutory conditions for a mass layoff, it must continue to perform the employment contracts with its workers and may not Terminate the Employment Relationships with them.
In the event of a one-time mass layoff satisfying either of the conditions specified in Article 2 or the laying off, between the date of issuance hereof and December 31 2007, of at least 20 persons in the aggregate or although of less than 20 persons the number of persons laid off accounting for at least 10% of the enterprise's total workforce, the Employer must, in addition to carrying out the procedure specified in Article 27 of the PRC Labour Law, submit a written report in advance to the relevant labour and social security department.
Related Legislation:PRC Employment Contract Law, Jun 29 2007, CLP 2007 No.6 p.30; and PRC Labour Law, Jul 5 1994, CLP 1994 No.7 p.21
clp reference:2400/07.12.14/GZpromulgated:2007-12-14This premium content is reserved for
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