Summary of Law Updates:

Labour

1. < Administrative Provisions on Internship of Students from Vocational School > (2016-04-11)

The Administrative Provisions on Internship of Students from Vocational School (hereinafter referred to as Provisions) has been issued jointly by the Ministry of Education and four other departments on 11th April, 2016, and the Administrative Provisions on Internship of Students from Secondary Vocational School has been abolished simultaneously. Compared to the abolished Administrative Provisions on Internship of Students from Secondary Vocational School, the following aspects are improved in the Provisions:

1. Pinpoint the definition of internship. The key is practical education and teaching activity to carry out the cultivation of professional skills in the forms of cognition practice, sub-participation of post exercitation guided by professional staff and substituted post exercitation. Meanwhile, the regulating scope is adjusted from the secondary vocational school to all vocational schools, including the higher vocational school.

2. Pinpoint the provisions on organizing internship. Key points including:

• The students may choose the entity for substituted post exercitation by themselves.
• The proportion of the students to substituted post exercitation shall not be higher than 10% of total number of employees and not higher than 20% of the total number of employees of the same posts.
• The period of internship for substituted post exercitation is 6 months in general.

3. Pinpoint the provisions on internship management. Key points including:

• Before the student attending the followed or substituted post exercitation, the vocational school, entity for internship, and the student shall sign an internship agreement prior to sub-participation of post exercitation guided by professional staff or substituted post exercitation.
• The fundamental rights of interns shall be enforced according to law. It is prohibited to arrange or receive students of Grade One to the substituted post exercitation, to arrange students under the age of 16 to sub-participation of post exercitation guided by professional staff or substituted post exercitation, to arrange the students to practice on statutory holidays, or to arrange the students to practice overtime or in night shift.
• The compensation for internship shall not be less than 80% of the wage standard for employees of same posts who are in probation period.

4. Liability for safety. It is provided that the students who have not attended educational training and passed the assessment shall not participate in the internship. The system of compulsory insurance for internship shall be established, and the liability insurance for internship shall be insured for interns.

2. < Notice on Gradual Reduction of Premium Rate of Social Insurance > (2016-04-14)

The Notice on Gradual Reduction of Premium Rate of Social Insurance (hereinafter referred to as Notice) has been issued jointly by The Ministry of Human Resources and Social Security and The Ministry of Finance on 14th April, 2016.

It is provided by the Notice that since 1st May, 2016,

• For the provinces (regions, cities) ｗｈｅｒｅ the proportion of premium rate of basic endowment insurance of employees paid by enterprises having exceeded 20% of the aggregate monthly wage of employees within locally regulated range, the proportion of premium rate to be paid by enterprises shall be reduced to 20%; For the provinces (regions, cities) ｗｈｅｒｅ the proportion of premium rate paid by enterprises having reached 20% and by the end of 2015, the accumulative surplus of the fund of the basic endowment insurance for employees is sufficient to pay for more than 9 months, the proportion of premium rate to be paid by enterprises could be reduced to 19% gradually. The period to enforce the reduction is temporarily set as two years.
• On the basis of 1% reduction in 2015, the total premium rate of unemployment insurance could be reduced to 1% to 1.5%, of the monthly wage of employees within locally regulated range, gradually. Thereinto, the premium rate paid by individual employees shall not be more than 0.5%. The period to enforce the reduction is temporarily set as two years.

Health and Safety

1. < Measures for Implementation on Safety Production Licence of Coal Mining Enterprises > (2016-04-01)

The Measures for Implementation on Safety Production Licence of Coal Mining Enterprises (hereinafter referred to as Measures) was amended and gazetted by State Administration of Work Safety on 16th February, 2016 and it has come into force on 1st April, 2016. The previous Measures for Implementation on Safety Production Licence of Coal Mining Enterprises which was amended on 8th June, 2015 has been repealed simultaneously. The main changes of the amended Measures are listed as follows,

• Abrogate licensing enterprises. The Measures abrogates licensing of enterprises engaging in the management of coal mines. Meanwhile, the principle of "Application by coal mine; Licensing by provincial authorities; Supervision by local authorities." on safety production licensing was explicitly provided in the Article 3.
• Contents on censorship were revised. The expression was revised in the Measures from "system of responsibility on safety production" to “system of responsibility on safety production and prevention and control of occupational hazards", and the requirements to meet the standardization on safety and quality were added in the clause about immediate extension of the Safety Production Licence.
• Cease to solicit the opinion from local government before licensing. The precondition - "safe production licensing and administrative department shall obtain the consent from local safety production supervision and administration department or relevant department of the people’s government ｗｈｅｒｅ coal mining enterprise locates” - for licensing was removed from the Measures.

2. < Regulation on Production Safety in Chongqing > (2016-03-01)

The Regulation on Production Safety in Chongqing (hereinafter referred to as Regulation) was gazetted by Chongqing Standing Committee of People’s Congress on 26th November, 2015 and it has come into force on 1st March, 2016. The Regulation of Supervision and Administration on Production Safety in Chongqing issued on 1st June, 2005, was repealed simultaneously. The main contents of Regulation are listed as follows,

• The Regulation provides if a production and business entity appoints a safety-project-in-charge, s/he shall undertake the direct responsibility of supervision and administration on assigned production safety; if a safety-technical-in-charge is appointed, s/he shall undertake direct responsibility of supervision and administration on production safety in the scope of his technical work.
• The Regulation explicitly provides that the production and business entities shall provide education and training on production safety for employees who are back to duty after taking leave for 6 months or longer; employees who transfer to new post shall be provided with education and training on production safety according to the requirements of the new post. If new process, new technique, new material or new equipment is used, the production and business entities shall provide education and training on production safety to employees based on the requirements of the new usage.
• The Regulation explicitly provides that prominent safety warning signage shall be installed in the warehouse or other places storing or piling up with dangerous goods, and the name, type, quantity, safety instruction, fire safety requirements of dangerous goods and other matters requiring attention shall be stated clearly on the safety warning signage.
• The Regulation improves the provisions of legal liability and refines management responsibilities on production safety of related personnel and the production and business entities. The number of legal liability clauses has been increased from seven (7) to twelve (12).

Environment

1. < Measures of Supervision and Administration on Transportation Safety for Radioactive Substances > (2016-05-01)

The Measures of Supervision and Administration on Transportation Safety for Radioactive Substances (hereinafter referred to as Measures) was deliberated and adopted by the Ministry of Environmental Protection, and has come into force on 1st May, 2016. Highlights of the Measures are as follows:

I. The Measures apply to the supervision and administration of the transportation of radioactive substances and the design, manufacturing and process of usage of transportation containers for radioactive substances.

II. The manufacturer of transportation container for radioactive substances of Category I shall obtain a licence prior to manufacturing.

III. The shipper is responsible for the nuclear and radiation safety and emergency operation of the transportation of radioactive substances. The shipper which consigns radioactive substances of Category I shall obtain the approval for the Safety Analysis Report on Nuclear and Radiation in accordance with the law prior to transportation. The shipper shall provide training about knowledge on transportation safety and emergency response for the personnel directly engaged in the transportation of radioactive substances and assess them. Occupational health records shall be established for them as well.

IV. Prior to the consignment of radioactive substances, the surface pollution and radiation level shall be monitored, and the radiation monitoring report shall be provided. Consignment is not allowed if the monitoring result does not meet the national standard on transportation safety of radioactive substances.

China Minimum Wage Standard Update – May 2016

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