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The authorities聽of Guangzhou聽introduced a new regulation on Friday to prevent employers from retrenching large numbers of workers before the end of the year.
Between now and December 31, any company that intends to dismiss more than 20 workers or reduce its staff by more than 10 percent must apply to the labor department for permission, the Guangzhou labor and social security bureau told China Daily yesterday.
The regulation is designed to better manage large-scale cutbacks and ease the implementation of the new Labor Contract Law, the bureau's vice-director Chen Jianlong said.
The regulation recognizes that most employment contracts expire by the year-end, he said.
"Dismissing more than 20 employees or cutting staff by more than 10 percent in the name of contract expiration violates the regulation," Chen said.
The new rule applies to all enterprises under the municipal government, private firms, government departments, public institutions and social associations, he said.
Exemptions are possible for companies facing bankruptcy or deemed to be undergoing reorganization by the courts.
Those defined as "ailing enterprises" by the government are also eligible for exemption.
The labor and social security bureau will adopt strict measures to prevent ineligible companies from firing large numbers of workers, he said.
Those that violate the regulations will be unable to suspend coverage of dismissed workers' insurance.
Editor: Donald
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