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Greater China HR Update

Greater China HR Update is produced by our Hong Kong office, and provides analysis of legal developments in human resources law in Hong Kong and China.

The Minimum Wage Bill has been a source of controversy in Hong Kong since it was gazetted in June 2009. We consider keys point of contention, including the exclusion of live-in domestic helpers and student interns, and special arrangements for disabled persons. 

Under the law, an employer cannot force an employee to enter into a release document, and if an employer is aware that the employee was mentally disordered when executing the release, the document may be set aside in the future.  These principles were analysed in the recent case of Knight John Lee v. Global Force Limited trading as The Mix.

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Previous issues:
2008 brings with it some major changes for labour related laws and regulations in the People's Republic of China. This article summarises some of these changes so that employers can obtain a better understanding of what to expect this year.

Staffing issues in the PRC currently raise a number of challenges for both domestic and foreign enterprises, ranging from the fair recruitment of staff, through to the cost and complexities involved in ending unsatisfactory employment relationships. These issues arise from the country's complex legal environment, which varies from region to region. With the introduction of the PRC Labour Contract Law and the Employment Protection Law (both effective from 1 January 2008), the situation becomes even more challenging for an employer. This article highlights the difficulties employers may face in China, while providing practical tips to avoid the high penalties associated with non-compliance of China's labour law.

Effective since 13 July 2007, The Employment (Amendment) Ordinance was introduced to better assist Hong Kong employers in determining which payments to employees should (and should not) be included in the calculation of 'wages'. In spite of this, the Amendment Ordinance appears to have left a number of questions unanswered. This article addresses the practical issues businesses are facing when seeking to apply the Amendment Ordinance.

The much awaited new Labour Contract Law of the People's Republic of China has finally been passed. The new Labour Contract Law requires every employer based in the PRC to grapple with its changes, in order to ensure compliance with its obligations, and avoid facing financial and reputational risks.

The Employment (Amendment) Ordinance will come into effect on 13 July 2007, bringing with it a number of practical implications for Hong Kong employers. Introduced to address the concerns over the controversial judgment in the case of Lisbeth Enterprises Limited v Mandy Luk, the new law will force Hong Kong employers to follow a prescribed statutory formula when calculating an employee's statutory entitlements to holiday leave pay, annual leave pay, sickness leave pay, maternity allowance and payments in lieu of notice.

In the wake of Wal-Mart's recent compromise on its 'no-union' position in the People's Republic of China, and the proposed changes under the Draft Labour Contract Law which, if implemented, would strengthen the role of trade unions - is an employer obliged to establish a trade union, and what are the practical implications of working with an established trade union?
The broad range of changes proposed by China's Draft Labour Contract Law has provoked numerous responses, including concern from various multinational corporations established in China.

Following on from our previous update, which explained the background to the Draft Labour Contract Law, this is the first of two legal updates aimed at providing an overview of the proposed changes in the Draft Law.

China's Draft Labour Contract Law released on 20 March 2006 has provoked numerous responses and a great deal of interest, including concern from numerous multinational corporations established in China.

The proposed draft legislation on race discrimination in Hong Kong is expected to be enacted in the coming months. Once released, it will be the first Hong Kong law to prohibit racial discrimination, harassment and vilification in the private sector.
In this special World Cup edition of our HR newsletter, we look at issues that Hong Kong employers might wish to consider, and measures to put in place to ensure a balance between the needs of the business with those of the football fans amongst your staff, for the duration of the month of football madness.



© Minter Ellison 2010

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