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PRC Labour Law - Bitesize

31 July 2013
Mayer Brown JSM Newsletter

Wage Collective Consultation (cont'd)

This Bitesize follows on from our discussion last week on wage collective consultations.

Is it possible to select persons from outside the business unit to act as the consultation representative?

Yes. Either side may select "professional personnel" to act as a consultation representative. However, the number of such professional personnel may not exceed one-third of each side's representatives, and no person from outside the business unit can act as the chief representative.

Are the employee representatives subject to any special legal protection?

Yes. An employee who acts as an employee representative for a wage collective consultation is entitled to have his or her contract extended until negotiations have been completed, should the contract expire during the negotiations. The representative is also entitled to full wages and benefits during the period of negotiations. However, there may be regional variations in the actual protection granted.

What is a wage collective contract?

A wage collective contract is a special written agreement concluded through wage collective consultation between the representatives of an employer and those of its employees, focusing on wage-related matters. For details regarding wage collective consultation and the scope of topics covered by it, please refer to our Bitesize article of 25 July 2013.

How is a wage collective contract concluded?

To conclude a wage collective contract, a draft wage collective contract agreed by the wage consultation representatives of both the employer and the employees must be submitted to the employees' representative congress or to all employees for discussion. Over two-thirds of the employee representatives or all employees must be present, and then the draft must be approved by a majority (i.e., over 50 percent) of the employee representatives or a majority of all employees before the chief representatives of each side sign the contract.

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