• Area of Law： Contract
• Level of Authority： Local Government Rules
• Date issued：12-24-2001
• Effective Date：02-01-2002
• Issuing Authority： People's Government of Beijing Municipality
• Status： Effective

Order of the People's Government of Beijing Municipality
(No. 91)
The "Provisions of Beijing Municipality on Labor Contracts", which were adopted at the 43rd executive meeting of the Municipal People's Government on December 13, 2001, are hereby promulgated, and shall come into force on February 1, 2002.
Mayor Liu Qi
December 24, 2001
Provisions of Beijing Municipality on Labor Contracts
Contents
Chapter I General Provisions
Chapter II Conclusion of Labor Contracts
Chapter III Modification of Labor Contracts
Chapter IV Rescission of Labor Contracts
Chapter V Termination and Renewal of Labor Contracts
Chapter VI Legal Liabilities
Chapter VII Supplementary Provisions
Chapter I General Provisions
Article 1 The present Provisions are formulated in accordance with the "Labor Law of the People's Republic of China" and other relevant provisions, and in light of the actual circumstances of this Municipality for the purpose of regulating labor contracts, and protecting the lawful rights and interests of workers and employers.
Article 2 All enterprises, individual industrial and commercial business households and non-enterprise private entities (hereinafter uniformly referred to as employers) within the jurisdiction of this Municipality shall, if establishing labor relationships with workers, conclude labor contracts in accordance with the present Provisions.
State organs, public institutions and social organizations shall, if establishing contractual labor relationships with workers, comply with the present Provisions.
Article 3 A labor contract is an agreement whereby the worker and the employer establish the labor relationship, and clarify the rights and obligations of both parties.
Article 4 The conclusion and modification of labor contracts shall observe the principles of equality, free will, and unanimity through consultation. The conclusion, modification, rescission, termination or renewal of a labor contract shall not violate any law, regulation or rule.
A labor contract shall be legally binding once it is concluded in accordance with the law, and the parties must perform their respective obligations under the labor contract.
Article 5 The administrative department of labor and social security of the Municipality, or that of each district or county shall take charge of supervising and administering the labor contract institution.
Article 6 An employer shall, in accordance with the law, establish and improve relevant labor rules in respect of working hours, labor remunerations, rests and holidays, occupational trainings, safety and sanitation, insurances, welfares, labor disciplines, etc., and protect the lawful rights and interests of the workers.
Article 7 A labor union shall, in accordance with the law, help and guide workers in concluding and performing labor contracts, and supervise the employer's conclusion and performance of labor contracts. If the employer violates any labor law, regulation or rule or any labor contract, the labor union shall have the right to propose its opinions or request the matter to be settled anew; if any worker applies for arbitration or brings a lawsuit, the labor union shall provide support and assistance in accordance with the law.
Chapter II Conclusion of Labor Contracts
Article 8 An employer shall, as of the first day of employing a worker, establish the labor relationship with the workers. For the sake of establishing the labor relationship, a labor contract shall be concluded.
Article 9 An employer shall be established in accordance with the law, be capable of paying wages and social insurance premiums in accordance with the law, providing labor protection conditions, and bearing corresponding civil liabilities.
A worker shall reach the statutory age for employment, and have the capacity suitable for performing his obligations under the labor contract.
Where an employer intends to employ minors or workers coming from other places to work in Beijing, it shall conform to the relevant provisions of the state and this Municipality.
Article 10 An employer shall truthfully describe to the worker the employment requirements for the position, the contents of work duties, the working hours, the labor remunerations, the working conditions, and the social insurances, etc.; while the worker shall have the right to inquire about the employer's relevant information, and shall truthfully provide the employer with the attestations such as his own identity certificate and diploma, his employment situation, work experience, and occupational skills, etc.
Article 11 A labor contract shall be concluded in written form. A labor contract shall be in two original copies, with one copy kept by each party.
Article 12 A labor contract shall state the employer's name, address and the worker's basic information such as his name, gender and age, etc., and shall include the following clauses:
(1) term of the labor contract;
(2) contents of work duties;
(3) labor protection and labor conditions;
(4) labor remunerations;
(5) social insurances;
(6) labor disciplines;
(7) conditions for termination of labor contracts; and
(8) liabilities for breaching the labor contract.
Article 13 In addition to the clauses prescribed in Article 12 of the present Provisions, the parties may, after reaching an agreement through negotiation, set forth the following contents in the labor contract:
(1) probation period;
(2) trainings;
(3) maintenance of commercial secrets;
(4) supplementary insurances and welfare treatments; and
(5) other particulars.
Article 14 The terms of labor contracts may be divided into fixed terms, non-fixed terms, and terms for completion of certain amount of work.
Article 15 Where any of the following circumstances arises, the employer shall conclude a non-fixed-term labor contract if the worker so requires:
(1) The worker is a national model worker, an advanced worker, or a May Day Medal winner;
(2) The worker is a demobilized serviceman or a retired serviceman who is transferred to civilian work, and is assigned to the job position for the first time;
(3) The worker is converted from a farmer due to requisition of land for construction and is assigned to the job position for the first time;
(4) The employer that has never adopted the labor contract approach adopts it for the first time, while the worker has worked for 10 consecutive years and is less than 10 years from the statutory age for retirement; and
(5) Other circumstances prescribed by the state or this Municipality.
Article 16 A labor contract may set forth a probation period. If the term of a labor contract is less than 6 months, the probation period shall not exceed 15 days; if the term of a labor contract is more than 6 months but less than 1 year, the probation period shall not exceed 30 days; if the term of a labor contract is more than 1 year but less than 2 years, the probation period shall not exceed 60 days; if the term of a labor contract is more than 2 years, the probation period shall not exceed 6 months.
The probation period shall be included in the term of a labor contract.
Article 17 Where the probation period of a labor contract exceeds the term prescribed in Article 16 of the present Provisions, the worker may require modification of the corresponding term of the labor contract, or require the employer to pay wages regarding the excessive term at the wage rate for the non-probationary period. The employer shall timely modify the term of the labor contract, or pay the wages at the wage rate for the non-probationary period.
Where a labor contract sets forth only the probation period but does not set forth the term, and the worker requires a term be set forth therein, the employer shall negotiate with the worker to determine the term of the labor contract. If both parties fail to reach an agreement on the term of the labor contract through negotiation, the term of the labor contract shall be determined in accordance with Article 16 of the present Provisions.
Article 18 An employer may, when concluding a labor contract with a worker who is required by his position to maintain the employer's commercial secrets, determine through negotiation a time period for prior notice for rescinding the labor contract. The time period for prior notice shall not exceed 6 months, and during such a period, the employer may take corresponding de-confidentiality measures.
Article 19 The parties concerned may stipulate in the labor contract the worker's liabilities for breach due to advance rescission of the labor contract, and the breach penalties paid by the worker to the employer shall not exceed the total amount of his wages for 12 months before the labor contract is rescinded, unless the labor contract is rescinded upon agreement through negotiation between the worker and the employer.
Article 20 The parties concerned may set forth the time of effectiveness in the labor contract. If they have not so set forth, the time when the parties sign their names or affix their seals shall be the time of effectiveness. If the time when one party signs the name or affixes the seal is different from that of the other, the time when the party who signs the name or affixes the seal at a later time shall be the time of effectiveness.
Article 21 The legal representative (person-in-charge) of an employer or its agent authorized in writing shall represent the employer to conclude labor contracts with workers. A labor contract shall be signed or affixed with seals by both parties, and also be affixed with the employer's seal.
Article 22 The following labor contracts shall be void and null:
(1) those which violate any labor law or regulation;
(2) those which are concluded by fraud, by menace or by other means;
(3) those whose contents are obviously unfair; and
(4) those whose standards on relevant labor remunerations or labor conditions, etc. are lower than those prescribed in the collective contract.
The ineffectiveness of a labor contract shall be confirmed by the labor dispute arbitration committee or the people's court. A void and null labor contract shall have no legal binding force as of its conclusion. For a labor contract confirmed to be partially ineffective, if the effectiveness of the remaining part is not affected, the remaining part shall still be effective.
Where a labor contract is confirmed as ineffective, and the worker has performed the labor contract, the employer shall pay corresponding labor remunerations, and provide corresponding treatments.
Article 23 Where there exists a labor relationship between an employer and a worker, but no labor contract is concluded, and the worker requires the conclusion of a labor contract, the employer shall not rescind the labor relationship, and shall conclude a labor contract with the worker. If both parties fail to reach agree upon the term of the labor contract through negotiation, the term of the labor contract shall be no less than 1 year as of the date of signature.
Article 24 An employer shall not charge in any form any deposit or mortgage, guaranty bond, caution money or any other fee, or distrain any worker's identity certificate or other credentials.
Chapter III Modification of Labor Contracts
Article 25 Upon agreement through negotiation, the parties to a labor contract may modify a labor contract.
Article 26 Where any law, regulation or rule in accordance with which a labor contract is concluded is changed, the relevant contents in the labor contract shall be modified in accordance with the law.
Article 27 Where an employer is merged or divided or is under any other similar circumstance, the original labor contract shall continue to be effective, and shall continue to be performed by the employer who succeeds the rights and obligations thereunder. If the employer modifies its name, the employer's name on the labor contract shall be modified accordingly.
Article 28 Where, due to a major change with the objective situation on which a labor contract is concluded, the original labor contract is unable to be preformed, and one party requires modification of the relevant contents, he/it shall submit the requirement for modification in writing to the other party. The other party shall make a reply within 15 days, or if it/he fails to make a reply within the time limit, it/he shall be deemed as not consenting to the modification of the labor contract.
Chapter IV Rescission of Labor Contracts
Article 29 Upon agreement through negotiation, the parties to a labor contract may rescind a labor contract.
Article 30 Where a workers is under any of the following circumstances, the employer may rescind the labor contract:
(1) He is proved to fail the employment standards within the probation period;
(2) He has seriously violated the labor disciplines or the rules laid down by the employer, and the labor contract may be rescinded in accordance with the provisions of the employer or the stipulations in the labor contract, unless the rules laid down by the employer are in conflict with any law, regulation, or departmental or local rule;
(3) He has committed serious dereliction of duty or practices frauds in favor of himself or his relative, and has caused serious losses to the interests of the employer; or
(4) He is subject to criminal liabilities in accordance with the law.
Article 31 Where any of the following circumstances arises, the employer may rescind the labor contract, provided that it shall notify the worker himself 30 days in advance in writing:
(1) The worker is unable to, after a treatment of disease or non-work-related injury, do his original job or another job arranged by the employer; or due to his inconformity with the provisions of the state or this Municipality on engaging the relevant industry or work position, the employer is unable to arrange another job for him;
(2) The worker is not competent for the job assigned to him and remains as so after being trained or being assigned other jobs;
(3) Due to a major change with the objective situation on which the labor contract is concluded, the original labor contract is unable to be preformed, and the parties fail to reach an agreement after negotiations regarding modification of the labor contract.
Article 32 Where an employer is under any of the following circumstances, and really needs to lay off some of its staff, it shall explain the situation to the labor union or all the workers 30 days in advance, listen to the opinions of the labor union or workers, and may lay off the staff after reporting to the administrative department of labor and social security:
(1) It is on the verge of bankruptcy and during the period of statutory rectification;
(2) It is moved to any other place due to prevention and control of industrial pollution; and
(3) Its production and business operation meets with any serious difficulty.
Where the employer lays off any of its staff in accordance with the preceding paragraph and then recruits staff within 6 months, it shall first recruit those that have been laid off.
Article 33 Where a worker is under any of the following circumstances, the employer shall not rescind the labor contract in accordance with Article 31 or Article 32 of the present Provisions:
(1) He suffers from an occupational disease or a work-related injury and has been confirmed to reach the corresponding disability grade;
(2) He suffers from a disease or an injury, and is in the prescribed period of medical treatment;
(3) A female worker is in the pregnancy, lying-in or breast-feeding period;
(4) He is recruited and enters the service, and is in the compulsory military service period;
(5) A demobilized serviceman or a retired serviceman who is transferred to civilian work has not worked for 3 three years after retiring from the service;
(6) A worker is converted from a farmer due to requisition of land for construction has not worked for 3 years after beginning his first job;
(7) He has worked for 10 consecutive years for the employer, and there is less than 5 years from the statutory age for his retirement;
(8) In an enterprise adopting the collective contract approach, the negotiating representative of the workers has held the position of the representative for less than 5 years within the term of the labor contract; and
(9) Other circumstances prescribed by the state or this Municipality.
Article 34 Where a worker intends to rescind a labor contract, it shall notify the employer in writing 30 days in advance or by complying with the time period for prior notice as set forth in the labor contract.
Where the economic losses caused by a worker to the employer have not been settled or the worker has not borne the liabilities for breach pursuant to the labor contract, the labor contract shall not be rescinded according the preceding paragraph.
Article 35 Where any of the following circumstances arises, the worker may notify the employer at any time to rescind the labor contract, and the employer shall pay corresponding labor remunerations to the worker and pay social insurance premiums in accordance with the law:
(1) He is within the probation period;
(2) The employer compels the worker to work by violence, threat or by means of illegally restricting personal freedom;
(3) The employer fails to comply with the labor contract to pay labor remunerations or to provide labor conditions; or
(4) The employer fails to pay social insurance premiums for the worker in accordance with the law.
Article 36 Where the parties decide to rescind the labor contract in accordance with the present Provisions, the employer shall issue to the worker a written attestation on rescinding the labor contract, and shall complete the relevant procedures.
Article 37 Where a worker violates the requirement on notification by 30 days in advance or the agreed time period for prior notification to rescind the labor contract with the employer, the employer may refuse to handle the procedures for rescission of the labor contract.
Article 38 Where an employer rescinds a labor contract in accordance with Article 29, Article 31 or Article 32 of the present Provisions, it shall pay economic compensations to the worker in accordance with the relevant provisions of the state or this Municipality; while if it rescinds the labor contract in accordance with Item (1) of Article 31 of the present Provisions, it shall pay medical subsidies in accordance with the relevant provisions of the state or this Municipality, in addition.
Where a worker rescinds the labor contract in accordance with Item (2) of Article 35 of the present Provisions, the employer shall, on the basis of the worker's continuous term of work in the entity, pay economic compensations to the worker equal to 1 month's wages for each year he has worked, and the portion less than 1 year shall be calculated as 1 year. The economic compensations shall be calculated in accordance with the average wages of the enterprises of this Municipality in the last year.
Chapter V Termination and Renewal of Labor Contracts
Article 39 Where any of the following conditions arises, the labor contract shall be terminated immediately:
(1) The term of the labor contract has expired;
(2) Any of the conditions for termination as set forth in the labor contract arises;
(3) The worker has fulfilled the statutory conditions for retirement;
(4) The worker has died or is declared by the people's court as missing or dead; or
(5) The employer comes into bankruptcy or is dissolved in accordance with the law.
Article 40 Before expiry of the term of a labor contract, the employer shall, 30 days in advance, notify the worker in writing of the intention for terminating or renewing the labor contract, and shall, after negotiation, handle the procedures for terminating or renewing the labor contract.
Article 41 Where an employer terminates the labor contract in accordance with Item (1), Item (2) or Item (5) of Article 39 of the present Provisions, it shall issue a written attestation to the worker on terminating the labor contract, and handle the relevant procedures.
Article 42 Where, after reaching an agreement through negotiation, the parties to a labor contract may renew the labor contract.
A renewed labor contract shall not set forth the probation period.
Where a worker has worked for the same employer for 10 consecutive years or longer, and both parties agree to renew the labor contract, the employer shall conclude a non-fixed-term labor contract with the worker if the worker so requires.
Article 43 Where a worker suffers from an occupational disease or a work-related injury and is confirmed to reach the corresponding disability grade, the employer shall renew the labor contract if the worker so requires.
Article 44 Where the term of a labor contract has expired when the worker is in the prescribed period of medical treatment or the female worker is in the pregnancy, lying-in or breast-feeding period, the employer shall extend the term of the labor contract to the expiry of the period of medical treatment or of the pregnancy, lying-in or breast-feeding period.
Article 45 Where, at expiry of the term of a labor contract, the procedures for termination of the labor contract have not been completed due to the employer's reason, and the worker and the employer still keeps the labor relationship, it shall be deemed as a renewal of the labor contract, and the employer shall renew the labor contract with the worker. If the parties fail to agree upon the term of the labor contract after negotiation, the renewed term of the labor contract shall be no less than 1 year as of the date of signature; if the worker has worked for the employer for 10 consecutive years, the employer shall renew a non-fixed-term labor contract with the worker if the worker so requires.
An employer may, upon agreement with the worker through negotiation, rescind the labor relationship, and pay economic compensations to the worker; if the worker requires rescission of the labor relationship, the labor relationship shall be rescinded immediately, and the employer does not have to pay economic compensations.
Chapter VI Legal Liabilities
Article 46 Where an employer is under any of the following circumstances, and has caused any damage to a worker, it shall pay compensations:
(1) It recruits the worker without concluding a labor contract, or fails to renew the labor contract when the labor relationship continues after expiry of the term of the labor contract;
(2) The concluded labor contract is void or partially ineffective due to the employer's reason;
(3) It violates the present Provisions or the labor contract when rescinding the labor contract;
(4) It fails to, when rescinding the labor contract, pay economic compensations to the worker in accordance with provisions;
(5) It violates the relevant provisions or the labor contract by infringing upon the lawful rights and interests of female workers or underage workers;
(6) It compels a worker to work by violence, threat or by means of illegally restricting personal freedom; and
(7) Other circumstances prescribed in laws and regulations.
The rates of compensations shall be governed by the relevant provisions of the state and this Municipality.
Article 47 Where an employer violates Article 40 of the present Provisions by terminating a labor contract without notifying the worker 30 days in advance, it shall, on the basis of the worker's average daily wages of the last month, pay compensations to the worker equal to 1 day's wage for each day delayed.
Article 48 Where an employer recruits a worker who has not rescinded his present labor contract, and has caused economic losses to the former employer, the employer shall bear joint and several liability for compensations in accordance with the law in addition to the worker's making compensation.
Article 49 Where a worker violates the present Provisions or the labor contract to rescind a labor contract, and causes losses to the employer, he shall compensate the following losses:
(1) the expenses directly paid by the employer for recruiting him;
(2) the training expenses paid by the employer for him; and
(3) the direct economic losses caused to the production, business operation and work.
Article 50 Where a worker is under any of the circumstances prescribed in Item (2) or Item (3) of Article 30 of the present Provisions with the contract being rescinded by the employer, and has caused losses to the employer, he shall make compensations.
Article 51 Where an employer violates Article 8 of the present Provisions by failing to conclude a labor contracts with workers, it shall be ordered by the administrative department of labor and social security to make a correction within a time limit. If it fails to make a correction within the time limit, it shall be fined at 500 Yuan per person with whom it has not concluded a labor contract.
Article 52 Where an employer violates Article 24 of the present Provisions, it shall be ordered by the administrative department of labor and social security to make a correction, and may be fined 1,000 Yuan up to 30,000 Yuan, in addition.
Chapter VII Supplementary Provisions
Article 53 The present Provisions shall come into force on February 1, 2002. The "Some Provisions of Beijing Municipality on Implementing the Labor Contract System" as promulgated by the Municipal People's Government on February 5, 1995 by Order No. 1 shall be repealed simultaneously.