The Decision of the Standing Committee of the National People’s Congress on the Revision of the PRC Labour Contract Law was published on 28 December 2012. In particular, the Amendment modifies the rules on labour dispatch contained in Articles 57, 63, 66, and 92 of the Labour Contract Law. The amendment will formally come into effect on 1 July 2013, although some of its new rules will not take effect immediately. We review the key changes below.
The amendment makes it more difficult to operate a labour dispatch enterprise by increasing the requirements for conducting labour dispatch business. The new, more onerous thresholds are: 1) a minimum registered capital of RMB2 million (US$324,000), up from RMB500,000; 2) a special licence is required from the labour administrative authority. The deadline for this change is 30 June 2014.
Equal pay for equal work
The principle of ‘equal pay for equal work’ is not new. It appeared in the Women’s Protection Law in 1992 to protect female employees, then in the Labour Law in 1995 to protect employees generally, and in the Labour Contract Law in 2008 to protect labour dispatch employees in particular. The amendment re-emphasises the requirement, and sets a deadline of 1 July 2013 for providing equal pay for equal work to employees retained through labour dispatch.
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Gillian Miao is a counsel at Pinsent Masons in Shanghai. She can be contacted on +86 21 6138 2525 or by email at gillian.miao@pinsentmasons.com
