(3) The Law of The People's Republic of China on Conciliation and Arbitration of Labour Disputes

(4) Other information on Employment Protection in the Mainland

The following information comes from the relevant laws and regulations. For full details, please refer to the original text of the laws and regulations. In any circumstances, the original text of the laws and regulations shall be relied upon for interpretation.

Regulations on Wage Payment

The "Interim measures on wage payment" is promulgated by the State and sets out the details of aspects such as the forms of wage payment, time limit for wage payment, calculation of overtime payment and wage deduction restrictions in the Mainland. The gist of which is as follows:

* Wages shall be paid in the lawful currency and shall not be paid in kind or in marketable securities.

* Wages shall be paid on the agreed date. In the event that the date falls on a festival holiday or a rest day, wages shall be paid on an earlier working day. Wages shall be at least paid once a month.

* In the event that a contract of employment is terminated, the employer shall settle the wage payment fully upon the release or termination of the contract of employment.

* If a worker is required to work overtime beyond the statutory normal working hours, the overtime payment shall be calculated at the rate of 150% of the daily or hourly rate of that worker. If a worker works on a rest day, the overtime payment shall be calculated at the rate of 200%. If a worker works on a statutory holiday, the overtime payment shall be calculated at the rate of 300%.

* Any employer shall not deduct any wage except in the case of deduction on behalf of the employee, which includes: payment for personal income taxes; the various social security fees which shall be borne by the worker; dependency costs and maintenance fee as ordered by the court; and other fees deductible according to laws and regulations.

Holidays and Festivals

* Annual National Festivals and Holidays applicable to all:
1. New Year's Day: 1 January, one day
2. Spring Festival: the day immediately preceding Lunar New Year's Day, the first, second, of Lunar New Year, three days
3. Ching Ming, one day
4. Labour Day: 1 May, one day
5. Tuen Ng Festival, one day
6. Chinese Mid-Autumn Festival Day, one day
7. National Day: 1, 2, 3 of October, three days

Should any of the national holidays fall on Saturday and Sunday, a compensated holiday should be given on a working day.

Injury or Occupational Disease Arising out of Work

According to the Provisional Measures for Work-related Injury Insurance for Enterprise Employees promulgated in 1996 by the then Ministry of Labour, an employee who sustains injuries, disability, or occupational disease because of performing work allocated by the management, or protecting the interests of the State or community such as when undertaking rescue activities is considered as work-related.

If an employee sustains a work-related injury or contracts an occupational disease, he is entitled to work-related injury insurance. The insurance would be paid by the Work-related Injury Insurance Fund, which contribution comes from enterprises.

Work-related Injury Insurance Items:

* The expenses for the injured employee arising out of registration, medical treatment, medicine, hospital stay and transportation to medical treatment centres are fully reimbursable.

* The injured employee shall cease to receive wages during his "medical leave period for a work-related injury" (hereafter "medical leave period") and instead receive work-related injury subsidy. The work-related injury subsidy shall be the average monthly salary calculated on the basis of his salary received during the twelve months prior to the injury. The medical leave period refers to the period during which an employee stops working and receives medical treatment and a work-related injury subsidy. The period ranges from one to 24 months according to the degree of injury. In severe cases, the medical leave period may be extended, but may not exceed 36 months.

* An injured employee who has been assessed to require nursing care would receive a nursing care subsidy which level shall be assessed by a Labour Assessment Committee.

* If an injured employee requires the supply of prosthesis or a walking aid, the cost would be reimbursable according to the standard of those normally supplied locally.

* If there is any permanent disability caused to an injured employee, the Labour Assessment Committee shall make assessment on his level of disability. If the level of disability would not deter the injured employee from continuing to work, he shall be given a one-off disability compensation, which amount ranges from 6 to 16 months of the injured employee's salary, depending on his level of disability. If the level of disability is very serious and that the employee is unable to work anymore, he shall be entitled to a gratuity payment according to his level of disability.