Summary:

• The Notice on Continuing Phased Premium Rate Reduction of Social Insurance was jointly gazetted by the Ministry of Human Resources and Social Security and the Ministry of Finance. If the provided requirements are met in a region, the implementation period of the gradually reduced premium rate can be extended for one year.
• The Administrative Measures on Permission for Special Working Hours System in Tianjin Municipality has been gazetted by the local Bureau of Human Resources and Social Security and it provides some special requirements on working hours and overtime wages.
• The Regulation on Safety Production Liabilities of Production and Business Entities in Hunan Province was gazetted by the local Provincial People’s Government and it emphasizes that the relevant personnel in production and business entities who fail to carry out the legal liabilities of safety production shall be penalized according to the law, and shall be put into the List of Dismerit on Safety Production.
• The Decision on Amending Partial Contents of Catalogue for Classified Administration of Environmental Impact Assessments for Construction Projects has been adopted and promulgated by the Ministry of Ecology and Environment. The process of Environmental Impact Assessment (EIA) is simplified, the time limit to examine and approve construction projects is shortened and the EIA costs for enterprises are reduced

Summary:

• In order to further standardize the management on import of solid wastes, prevent and control environmental pollution, the Ministry of Ecology and Environment, Ministry of Commerce, Development and Reform Commission and General Administration of Customs have adjusted the three Appendixes in the current Catalogue for Administration on Import of Wastes.
• The Notification on Institution Setting of the State Council has been issued by the State Council. The reform is carried out to the setting of national ministries and commissions.
• Updated Minimum Wage Standard of Shandong Province and Yunnan Province.

Contents

Labour

• < Notice on Continuing Phased Premium Rate Reduction of Social Insurance >
• < Administrative Measures on Permission for Special Working Hours System in Tianjin Municipality >

Health and Safety

• < Regulation on Safety Production Liabilities of Production and Business Entities in Hunan Province >

Environment

• < Decision on Amending Partial Contents of Catalogue for Classified Administration of Environmental Impact Assessments for Construction Projects >
• < Announcement on Adjusting the Catalogue for Administration on Import of Wastes >

Other

• < Notification on Institution Setting of the State Council >

Minimum Wage Standard Update

• Shandong Province, Yunnan Province

Summary of Law Updates:

Labour

1. < Notice on Continuing Phased Premium Rate Reduction of Social Insurance > (2018-04-20)

The Notice on Continuing Phased Premium Rate Reduction of Social Insurance (hereinafter referred to as Notice) was jointly gazetted by the Ministry of Human Resources and Social Security and the Ministry of Finance on 20th April 2018.

In order to further reduce the employment cost and vitalize the enterprise development, the Notice provides that, since 1st May 2018, for the contribution proportion of basic endowment insurance, unemployment insurance and occupational injury insurance, if the provided requirements are met, the implementation period of the gradually reduced premium rate can be extended for one year until 30th April 2019. The specific adjustment plan of premium rate for each region shall be implemented after approval by the provincial people’s governments.

2. < Administrative Measures on Permission for Special Working Hours System in Tianjin Municipality > (2018-04-29)

The Administrative Measures on Permission for Special Working Hours System in Tianjin Municipality (hereinafter referred to as Measures) has been gazetted by the Tianjin Municipal Bureau of Human Resources and Social Security on 29th April 2018 and it has come into force on the same day. The period of validity will be five years.

The main contents related to working hours and overtime wages provided by the Measures are as follows:

• The employers that have been approved to implement the Comprehensive Working Hours System shall adopt the methods of Concentrated Working and Concentrated Breaks, having off-duty days by turns or by switched rest days to uphold the rights of labourers on rest and vacation. Labourers shall not work for more than 14 hours a day. For posts of Grade 3 of physical labour intensity or above, the working hours for labourers shall not exceed 11 hours per day, and shall be with at least one day off per week. For posts that require 24 hours of continuous operation, employers shall implement a pattern of multiple shifts. The pattern of 2-shift rotation is prohibited.
• The employers that have been approved to implement a Comprehensive Working Hours System or Flexible Working Hours System, shall pay remuneration at a rate of no fewer than 300% of normal wages to labourers who are arranged to work on statutory holidays.

Health and Safety

1. < Regulation on Safety Production Liabilities of Production and Business Entities in Hunan Province > (2018-03-01)

The Regulation on Safety Production Liabilities of Production and Business Entities in Hunan Province (hereinafter referred to as Regulation) was gazetted by the Hunan Provincial People’s Government on 28th December 2017 and it has come into force on 1st March 2018. The main contents of the Regulation are as follows:

1. There are 37 articles in the Regulation which covers six aspects: liability system of safety production, safety production organizations and personnel, education and training, safety investment, risk management and control and hidden danger management, and emergency management.
2. The Regulation defines explicitly the legal liabilities of the production and business entities, the principle officer, organizations and safety production managers, and it gives details on the contents of safety training and management, highlights the requirements of investigation and management of hidden dangers and emergency management.
3. The Regulation emphasizes that the relevant personnel in production and business entities who fail to carry out the legal liabilities of safety production shall be penalized according to the law, and shall be put into the List of Dismerit on Safety Production.

Environment

1. < Decision on Amending Partial Contents of Catalogue for Classified Administration of Environmental Impact Assessments for Construction Projects > (2018-04-28)

The Decision on Amending Partial Contents of Catalogue for Classified Administration of Environmental Impact Assessments for Construction Projects has been adopted and promulgated by the Ministry of Ecology and Environment on 28th April 2018, and has come into force on the same date. The main contents and impacts to enterprises are as follows:

1. The process of Environmental Impact Assessment (EIA) is simplified

The categories of EIA for food manufacturing industry, wine and beverage manufacturing industry, computer, telecommunication and other electronic equipment manufacturing industry (11 categories and 35 subcategories) have been amended. Amongst, 16 projects are downgraded from the requirement of compiling EIA Report to EIA Report Form; 15 projects are downgraded from the requirement of compiling EIA Report Form to completing EIA Registration Form; The requirement of completing EIA Registration Form for 3 projects are abrogated.

For instance, for computer, telecommunication and other electronic equipment manufacturing industry:

• Before this amendment: EIA Report shall be compiled for display device, printed circuit board and integrated circuit with preprocessing.
• After this amendment: EIA Report Form shall be compiled for construction projects of the above 3 kinds of products.

2. The time limit in the process to examine and approve construction projects is shortened, and the EIA costs for enterprises are reduced.

After the requirement of compiling EIA Report is downgraded to EIA Report Form, the time limit in the process to examine and approve the construction projects is shortened from 60 days to 30 days. After the requirement of compiling EIA Report Form is downgraded to completing EIA Registration Form, the EIA documents of enterprises are not required to be examined and approved by the Ecology and Environment Department, but those enterprises only need to fill in the Registration Form on the Internet.

2. < Announcement on Adjusting the Catalogue for Administration on Import of Wastes > (2018-04-19)

In order to further standardize the management on import of solid wastes, prevent and control environmental pollution, the Ministry of Ecology and Environment, Ministry of Commerce, Development and Reform Commission and General Administration of Customs have adjusted the three Appendixes including the Catalogue of Solid Wastes Can Be Used as Raw Materials under Restrictive Import, the Catalogue of Solid Wastes Can Be Used as Raw Materials under Unrestrictive Import and the Catalogue of Solid Wastes Prohibited from Import in the current Catalogue for Administration on Import of Wastes, as follows:

1. Totally 16 kinds of solid wastes, such as waste hardware, compressed piece of waste ship or scrap automobile, smelting slag and industrial waste plastic, are transferred from the Catalogue of Solid Wastes Can Be Used as Raw Materials under Restrictive Import into the Catalogue of Solid Wastes Prohibited from Import. It will come into force since 31st December 2018.
2. Totally 16 kinds of solid wastes, such as stainless steel scrap, titanium scrap and wood waste, are transferred from the Catalogue of Solid Wastes Can Be Used as Raw Materials under Restrictive Import and the Catalogue of Solid Wastes Can Be Used as Raw Materials under Unrestrictive Import into the Catalogue of Solid Wastes Prohibited from Import. It will come into force since 31st December 2019.
3. If the appended catalogues in the Catalogue for Administration on Import of Wastes [Announcement No. 39 (2017)] is inconsistent with this Announcement, this Announcement shall prevail.
   

Other

1. < Notification on Institution Setting of the State Council > (2018-03-22)

The Notification on Institution Setting of the State Council has been issued by the State Council and has come into force since 22nd March 2018. The reform is carried out to the setting of national ministries and commissions.

After the reform, apart from the General Office of The State Council, there are 26 departments under the State Council. The departments with obvious impacts on corporate social responsibilities (including the enactment, amendment and enforcement supervision of laws and regulations) are as follows:

1. The newly established Ministry of Natural Resources. The Ministry of Land and Resources, the National Oceanic Administration Bureau and the National Geographic Information Bureau no longer exist.
2. The newly established Ministry of Ecology and Environment. The Ministry of Environmental Protection no longer exists.
3. The newly established National Health Commission. The National Health and Family Planning Commission no longer exists.
4. The newly established Ministry of Emergency Management. The State Administration of Work Safety no longer exists.

China Minimum Wage Standard Update

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