State Administration for Taxation (SAT) issued Announcement 19, [2013] No. 19, with effect from June 1, 2013, providing guidance on seconding expatriates to China. Many U.S. companies send expatriate employees to work in China on a temporary basis. If considered employees of the U.S. company while rendering services in China for more than six months in a year,
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The State Council issued the draft Administration for Regulation of Entry and Exit of Foreigners, expected to become effective July 1, 2013, building on the Exit-Entry Administration Law of China [see June 2012 China Bulletin] increasing the number of types of ordinary visas from eight to 12. The most significant change will be that these regulations add an R In November, the State Intellectual Property Office released the Draft Service Invention Regulations (reviewed in the November-December China Bulletin). Of particular concern in the regulations is an expansion of the scope of service inventions to know-how, requiring employers to track inventions and inventors themselves post-employment and potentially across generations. Several provision in the regulations also introduce potential new claims by The Employment Contract Law (ECL) was revised on December 28, 2012, with effect from July 1, 2013. It restricts employers’ use of secondees, a widespread practice in China, by 1) clarifying that “temporary” means no more than six months, 2) limiting “substitute” secondments to periods of time when another employee is unable to work or is on leave, and 3) defining “auxiliary” According to the 2012 China Business Environment Survey released by the US-China Business Council in October, 2012, the top challenge faced by its members operating in China is talent recruitment and retention. The survey noted that demand for qualified employees, particularly skilled technical and managerial employees, is often greater than supply. Labor costs are the rising cost of most concern, A recent Interpretation issued by the Supreme People’s Court (SPC) clarified when an employer must give an employee credit for prior years of service with a prior employer, compensation for post-employment non-competes, oral modification of labor contracts, and notification to the labor union of a labor contract termination. The final version did not include several provisions in an earlier, draft version that were especially challenging, including non-compete payments of 100% Amendments to the Civil Procedure Law (see September China Bulletin) that came into effect on January 1, 2013, provide that a court can grant preliminary injunctive relief if a party’s actions may make enforcement of a final judgement difficult or cause significant harm. This development is notable to employers and employees because Chinese jurisprudence did not traditionally provide for preliminary injunctions, The Amendment (VIII) to the Criminal Law of the PRC, effective May 1, 2011, added the crime of evading payment of a relatively large amount of wages as Article 276A of the Criminal Law. The crime includes evading payment by transferring property or hiding, or refusing to pay, although capable, after being ordered to do so by a relevant authority. The parties to a contract with a foreign element can generally agree to interpret their contract according to the law of a non-Chinese jurisdiction, such as California. However, the Supreme People’s Court’s recent Interpretation of the Law on Choice of Law in Foreign-Related Civil Relationships, effective January 7, 2013, lists several kinds of relationships where the use of PRC law is mandatory, including employment relationships. This means In November, the State Intellectual Property Office (SIPO) released the Draft Service Invention Regulations for a comment period, which ended on December 3rd. The draft regulations have attracted considerable attention and comment because of their potential to impose an unreasonable cost burden on R&D in China. The burden arises less from compensation awarded to inventors than from the notice, accounting and administrative burdens the draft |
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