Withholding wages is a punishable crime
April 14, 2011 | BY
Candice MakAmendment to criminal law targets malicious employers
Avoid trouble by resolving wage payment disputes with employees through arbitration, say counsel.
On February 25 2011, the National People's Congress promulgated the Amendment Act for the PRC Criminal Law (8) (中华人民共和国刑法修正案 (八)) (the Amendment), which will take effect on May 1 2011. Article 41 of this amendment addresses criminal liabilities for employers that fail to pay wages.
The Amendment stipulates that employers that withhold wages by means of transferring assets, going into hiding or simply refusing payment and failing to heed government correction orders could be subject to criminal punishment. This includes fines or imprisonment, or both.
This premium content is reserved for
China Law & Practice Subscribers.
A Premium Subscription Provides:
- A database of over 3,000 essential documents including key PRC legislation translated into English
- A choice of newsletters to alert you to changes affecting your business including sector specific updates
- Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
Already a subscriber? Log In Now