When In China …. China Labor Law Controls (chinalawblog.com)
By Dan Harris on March 7th, 2013
http://www.chinalawblog.com/2013/03/when-in-china-china-labor-law-controls.html
Just received an email from a friend stating/asking the following (note that I have changed some elements of the email to strip it of any even potentially identifying information):
I am heading off again to work for a few years at our China Rep Office. My new employment contract with the head office says that [foreign country] law will apply. Will it? And what if there is a conflict between [the foreign country] law and China’s laws, which will control?
We get this question far too frequently and we have seen way too many employment contracts written as though U.S. law (it was actually not a U.S. company in the above instance) applies all around the world. The reality is that if you are working for a Chinese company in China (be it a Rep Office, a WFOE, a JV, or whatever), Chinese law is going to apply to your employment relationship. I know of no country that would allow otherwise. I mean, imagine if a United States subsidiary of a Pakistani company were to claim in a U.S. court that it should not be required to pay overtime because their contract with the employee calls for Pakistani law and Pakistani law does not provide for that, or that it can discriminate against women because there is no such law prohibiting that in Pakistan? Even if the employee at issue were a Pakistani citizen, there is absolutely no way in the world a U.S. court would go along with any of those arguments. In fact, the argument is so bizarre I am not even aware of anyone ever having made it.
Any employer-employee relationship between a Chinese company and an employee working in China is going to be governed by China law, no matter what the contract says. So in China there would be no conflict of laws because Chinese law would simply apply. This is why we also advocate for drafting China employment contracts and employee manuals with Chinese as the official language. Chinese courts and Chinese administrative bodies are the only rightful jurisdiction for China labor law disputes stemming from employment in China (yes, this is true for expats too) and so it only makes sense to have these documents in the language they are sure to understand.
Here is a more interesting/complicated related question: what would happen if a U.S. company had a contract with a U.S. citizen and that contract provided that the U.S. citizen would go work at the U.S. company’s WFOE for a few years and that contract called for application of U.S. law. Now as I have said above, no Chinese court would apply anything but Chinese law to this relationship, but what would happen if the U.S. citizen were to flip around and sue the U.S. company in a U.S. court for failing to abide by some particular U.S. law? I do not know the answer to this question (any U.S. employment lawyers out there), but I can tell you that if it were to benefit my client, I would argue that Chinese law applies and I think I would prevail on that. But, I can also tell you that if it were to benefit my client, I would argue that U.S. law applies.
Anyone know how a U.S. court would rule?
Shanghai Party Bosses Believes License Plates Are Too Expensive (chinacartimes.com)
Mar 7, 2013 Posted By Administrator
http://www.chinacartimes.com/2013/03/shanghai-party-bosses-believes-license-plates-are-too-expensive/
How much is a Shanghai license plate? 80,000rmb as of this month, that’s 12,865USD for two slices of blue painted tin, or basically four Chery QQ’s. Would you pay it? I wouldn’t. The Shanghai Daily has a report from the National Congress on the Shanghai Party Boss’s views that the Shanghai license plates are just too darn high.
SHANGHAI Party chief Han Zheng has admitted that vehicle license plates cost too much, and pledged to use the funds raised from the auctions for local residents.
“I agree that car plates are too expensive,” Han told a group discussion of the Shanghai delegation at the annual session of China’s legislature in Beijing yesterday.
Prices recently reached more than 80,000 yuan (US$12,698), enough to buy an economy car.
The Shanghai government started an auction for vehicle license plates in 1994, as part of moves to address the heavy traffic problem in the metropolis of 23.8 million residents.
Han promised to make public the income generated by vehicle license plates.
“The incomes are raised from the people and should be used to serve the people,” Han said.
While agreeing license plates were expensive, Han said demand still exceeded supply.
“If we want to keep the prices in line, we have to grant more license plates,” Han said.
“At present, Shanghai releases 9,000 plates each month. We hope to do the job better through enhancing supervision and improving the system,” Han said.
Han also said new property restrictions announced last Friday by the central government were designed to promote healthy development of the industry and stifle unreasonable increases in house prices.
“It is a long-term mission and (we) believe the policies can lead the market to a sound way of growth,” Han said.
Han said: “Shanghai is standing at a new point of growth, and we should rely on restructuring and innovation to drive that growth.”
He said effective management of relationships among businesses, government, market and society was fundamental.
Responding to a reporter from Hong Kong on the limit on baby formula people can take to the mainland from Hong Kong, Han said both the government and the producers had a responsibility for food safety.
He called on the two cities to enhance cooperation in this regard and said domestic companies should draw a lesson and make improvements.
Han told a reporter from Taiwan that Shanghai was confident the city’s cooperation with the island in both manufacturing and service sectors had a bright future.
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