Guangdong delays labour law implementation
December 18, 2008 | BY
clpstaff &clp articlesLocal rules rolled out first in hope of easing business pressures
Enterprises in the Pearl Delta will feel less pressure, at least for a while, as the Guangdong government has decided to delay its formal application of the Implementing Regulations for the PRC Employment Contract Law (中华人民共和国劳动合同法实施条例 ).
The authorities' decision is to allow cities in the province, such as Shenzhen and Dongguan, to issue their own local rules. After an unspecified trial period, Guangdong will consider issuing provincial regulations.
Companies in Guangdong welcome such an approach, as the national Implementing Regulations threaten to increase their operational expenses, loading excessive burdens onto employers.
“Companies' burden will only be increased if the Guangdong government insists on issuing the provincial regulations under the current economic situation,” says Jay Chen, an associate at Fangda Partners. “By allowing cities to continue to apply their existing rules, the Guangdong government aims to at least help enterprises to pass their critical economic difficulties.”
Chen added that the delay in the issuance of provincial implementing regulations is a good step as it also gives local government some time to make adjustments.
The national Implementing Regulations for the PRC Employment Contract Law were issued on September 18 2008, but so far only Guangdong province has made an official announcement regarding plans on local implementation.
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