11 October, 2016
New legislation on employment of football players by football clubs
In August 2016, the Human Resources and Social Security Ministry, Education Ministry, General Administration of Sports and All-China Federation of Trade Unions jointly issued an Opinion on "Strengthening and Improving Labour Security for Professional Football Clubs" (the "Opinion"). The key point of the Opinion is that football clubs are now under an obligation to put employment contracts in place with their players. Prior to the Opinion, there was uncertainty regarding the nature of the relationship between players and clubs.
Football club associations should now prepare a template employment contract for reference. The contract must be concise, practical and take into account the nature of football sports. Football clubs will need to liaise with the relevant authorities in order to obtain work permits for foreign football players.
The Opinion specifies that local governments should instruct clubs to ensure that their players have the benefit of social insurance .. The football club is required to start paying social insurance fees within 30 days of its establishment.
In light of the Opinion, local governments should also instruct football clubs to set up trade unions and to carry out trade union activities. Finally, local governments are required to expand employment opportunities for professional football players, particularly players who are now retired from football.
For further information, please contact:
Kristy Peacock-Smith, Partner, Bird & Bird
kristy.peacock-smith@twobirds.com
