Beijing labour union measures add to compliance burden

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New labour measures adopted by the Standing Committee of the Beijing Municipal People’s Congress are likely to impose additional costs and further administrative burdens on companies in Beijing.

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Some of the key components in the Measures for Implementing the Labour Union Law, which took effect at the beginning of this year, include the following:

Penalties for violation

If a company breaches the measures – for example, by obstructing employees from establishing a union, refusing to engage in the collective bargaining process, etc. – the authorities may demand that the company rectify the breach. If the company still fails to comply, the labour bureaus may include this information in their records, and the administrations for industry and commerce may include this in the public credit information index. This may potentially limit the company’s ability to participate in government procurement activities, bid for government projects and receive government subsidies.

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Business Law Digest is compiled with the assistance of Baker & McKenzie. Readers should not act on this information without seeking professional legal advice. You can contact Baker & McKenzie by e-mailing Danian Zhang (Shanghai) at:[email protected]