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PRC Labour Law - Bitesize

25 July 2013
Mayer Brown Newsletter

Wage Collective Consultation

What is a wage collective consultation?

A "wage collective consultation" is the process relating to the collective negotiation of issues relating to wages. This may include internal wage allocation methods, wage increases, and also the means of payment of wages between employer and employees.

How is a wage collective consultation process usually initiated?

Either the employer or the employees can initiate the process by giving written notice to the other. The written notice should include details such as the time, venue and main topics for the intended consultation.

What must the recipient of the written notice do?

The recipient must respond to the notice within a specified time frame of up to 20 days following receipt, depending on local legislation. For example, in Guangdong province, the party receiving the notice must respond within 15 days, whereas in Tianjin, the period is five days. The request to negotiate cannot be rejected without proper reason.

Who should participate in the wage collective consultation?

Each party to the consultation must be represented by its wage consultation representatives. The consultation representative for the "employee party" is determined by the trade union (or, if there is no trade union, the democratic recommendations as agreed by 50 percent or more of the staff of that company). The employer is free to select its own consultation representative. The number of representatives on each side must be equal and a chief representative must be identified.

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