11 October, 2016
Violations of labour protection laws and social security laws to be made public
The Ministry of Human Resources and Social Security (MOHRSS) has announced that in addition to the "Measures for the Public Announcement of Major Labour Security Violations", which was issued on 3 August 2016 and comes into effect on 1 January 2017, additional measures are to be taken to make major labour or social security offences public.
The new evaluation methods focus on a three-tier rating system for companies. Companies with an excellent track record and which shall not be routinely audited are categorised as Class A, average companies which shall be regularly inspected are deemed to be Class B and companies with a history of violations which will fall under tight scrutiny of the enforcing agencies fall into Class C.
This new evaluation system will serve to inform the public of serious offences and it is hoped that it will have a self-regulating effect. Information to be made public under the new measures includes the full company name, name of the legal representative, unified social credit code (or registration number) and registered address, as well as key facts relating to the offences committed. At least once a quarter the data will be published both on the website of the local labour authority as well as printed in major newspapers, or broadcast on TV stations and other media.
These measures shall be implemented in parallel to the new evaluation method and shall come into effect on 1 January 2017.
For further information, please contact:
Kristy Peacock-Smith, Partner, Bird & Bird
kristy.peacock-smith@twobirds.com
