(Promulgated by the State Council by Decree No. 111 on April 20, 1993)
These Regulations are formulated in order properly to place the surplus staff and workers of State-owned enterprises, enhance of Enterprise vitality, and increase the economic returns of the Enterprises.
The placement of the surplus staff and workers of State-owned enterprises (hereinafter referred to as the "Enterprises") shall principally adhere to the principles of the placements made by the Enterprises themselves, and shall also adhere to the principles of socially assisted placements, as well as to the principles of maintenance of the minimum standard of living for surplus staff and workers.
In the placement of surplus staff and workers, the Enterprises shall, in accordance with these Regulations, explore diversified business, organize labor activities, develop the tertiary industry, and comprehensively utilize available resources and other measures.
The administrative competent departments of the Enterprises, competent labor administrative institutions and trade unions shall guide, assist and support the Enterprises in successfully placing surplus staff and workers, and actively create conditions to cultivate and improve the labor market and open up social channels for placement.
The independent accounting enterprises engaged in the tertiary industry, which are established for the purpose of placing surplus staff and workers from the Enterprises shall be exempt from taxes for two (2) years from the date of opening their businesses, and shall be taxed half of the regular amount for another three (3) years.
The labor employment service enterprises established by the Enterprises shall assume the task of placing the surplus staff and workers from their own Enterprises. The Enterprises shall, in accordance with the provisions of relevant State-owned assets management, give them full support with respect to capital, sites, raw materials, equipment, etc.
The independent accounting enterprises established according to law by surplus staff and workers of their Enterprises may assume the technical renovation or labor projects of their Enterprises originally contracted by other units.
The Enterprises may carry out vocational training and job change training for surplus staff and workers. Their wages during the training periods shall be determined by the Enterprises themselves.
The Enterprises may give their staff and workers a limited term leave, which shall deliberated at the congress of the representatives of the staff and workers of the Enterprises and then submitted to the competent administrative institutions of the Enterprises for documentation. The Enterprises shall distribute living expenses to such staff and workers during their leave period.
With respect to female staff and workers who are pregnant or breast-feeding, the Enterprises may, upon application by the females themselves, grant them leaves of absence of not more than two (2) years and distribute living expenses to them during such absences. Wages during the puerperal period shall be paid in accordance with the regulations of the State.
If the age of staff and workers is less than five (5) years below the stipulated age for retirement, such staff and workers may, upon their own voluntary application and with the approval from Enterprise authorities, remove themselves from their posts for rest. During such rest period, when the staff and workers have removed themselves from their posts, the Enterprises shall distribute living expenses to them. Where an overall plan for the retirement pension has been implemented, the Enterprises and the staff and workers who have removed themselves from their posts for rest shall pay the premium of the basic old-age insurance policy in accordance with relevant regulations. If staff and workers reach the age for retirement as stipulated by the State when they have removed themselves from their posts for rest, they shall handle the formalities of retirement in accordance with regulations. The period when the staff and workers had removed themselves from their posts for rest shall be deemed working years, and shall be calculated together with their previous working years.
Staff and workers may apply for resignation. When the staff and workers whose resignation was approved by the Enterprises complete their formalities of resignation, the Enterprises shall pay them an allowance in one lump sum in accordance with relevant regulations of the State.
The living expenses distributed by the Enterprises in accordance with Articles 8 and 9 of these Regulations shall be listed and paid out of the wage funds of the Enterprises. The standard for the living expenses shall be determined by the Enterprises themselves independently. However, such standards shall not be less than the minimum standards of living stipulated by the people's government of the provinces, autonomous regions and municipalities directly under the Central Government.
If the Enterprises have to reduce the number of the staff and workers due to great changes in production and operation, the Enterprises may, with respect to the contractual staff and workers, upon the deliberation and agreement at the congress of the representatives of the staff and workers, terminate contracts ahead of schedule, but shall perform their liabilities as agreed upon in such contracts. If there is no such agreement in the contracts, the Enterprises shall pay the staff and workers whose contracts have been terminated ahead of schedule the compensation of their standard wage, which shall be distributed in accordance with their working years in such Enterprises, that is, the equivalence of their respective standard wage of one (1) month is paid for each working year.
Various competent labor administrative institutions and the competent administrative departments of the Enterprises shall work hard at the social placement and adjustment for surplus staff and workers, and encourage and assist surplus staff and workers by organizing them to be re-employed and find new jobs on their own. The staff and workers adjusted between the Enterprises may be officially transferred, or perhaps temporarily transferred. With respect to the staff and workers who are temporarily transferred, their wages and welfare treatment during such temporary transfer period shall be decided by the agreement through consultations of relevant Enterprises.
If surplus staff and workers search for employment in society on their own because their Enterprises have difficulties in placing them, they shall be entitled to unemployment insurance according to law during the period of waiting for employment. The competent labor administrative institutions and relevant competent administrative departments shall create conditions and assist them in finding new jobs.
The staff and workers to be placed in the independent accounting enterprises established by the Enterprises in accordance with these Regulations shall be incorporated into the numbers of the staff and workers of newly established enterprises and the statistical scope of economic indicators in accordance with relevant regulations of the State.
The people's government of the provinces, autonomous regions and municipalities directly under the Central Government may formulate their respective measures for implementation in light of these Regulations.
The competent labor administrative institution under the State Council shall be responsible for the interpretation of these Regulations.
These Regulations shall be implemented as of the date of issuance.