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FACTORIES in the Pearl Delta do not need to meet the rigorous demands of the new PRC Employment Contract Law after the Guangdong provincial government decided put off province-wide implementation, reports Hong Kong legal journal China Law & Practice.
Instead, provincial authorities will allow the cities facing the global economic downturn, Shenzhen and Dongguan among them, to issue their own labour rules in such a way as not to deter business or increase costs which have risen sharply.
After an unspecified trial period, Guangdong said it will consider issuing provincial regulations, said the legal journal. Guangdong manufacturers have welcomed the move because strict implementation risks higher costs, which if passed on, will discourage exports.
"By allowing cities to continue to apply existing rules, the Guangdong government aims to at least help enterprises to pass their critical economic difficulties," said, Fangda Partners attorney Jay Chen.
The national Implementing Regulations for the PRC Employment Contract Law were issued September 18. Thus far, only Guangdong has made an official announcement regarding implementation.
Instead, provincial authorities will allow the cities facing the global economic downturn, Shenzhen and Dongguan among them, to issue their own labour rules in such a way as not to deter business or increase costs which have risen sharply.
After an unspecified trial period, Guangdong said it will consider issuing provincial regulations, said the legal journal. Guangdong manufacturers have welcomed the move because strict implementation risks higher costs, which if passed on, will discourage exports.
"By allowing cities to continue to apply existing rules, the Guangdong government aims to at least help enterprises to pass their critical economic difficulties," said, Fangda Partners attorney Jay Chen.
The national Implementing Regulations for the PRC Employment Contract Law were issued September 18. Thus far, only Guangdong has made an official announcement regarding implementation.
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