China Trade Commission Helps Reduces Employment Fraud & Scams With Free Distribution Of China's Labor Laws To Entreprenuers
Prevent employee frauds and scams in China before they occur by knowing the basic labor laws of China. One false claim or extortion attempt can tank your new business in China.
- (1888PressRelease) November 05, 2011 - Today CTC Public Affairs Director Paul Zhang announced that the China Trade Commission has provided all of its members a copy of China's Labor Laws that are summarized in a 36 page booklet in both English and Chinese in an effort to eliminate some common misunderstandings that often result in labor disputes and resentful employees. Another 1,000 booklets will be made available to local public business owners on a first come basis free of charge as a community service. Overseas entrepreneurs can request a copy by contacting the CTC from their corporate email account and providing their name, title, and company web site at LaborLaws{at}ChinaTradeCommission.org A sample of the new labor laws can be seem at this link:
http://www.globaltrade.net/international-trade-import-ex ...
CTC Executive Director Anthony S. DeMarco explained the need for the distribution of this booklet as follows "Too many western businessmen come to China believing the myth that they will obtain skilled workers at super low wages, and are shocked when they realize there are now minimum wage and many other laws that protect employees from abuse". Although China's labor laws are still evolving, they are currently focused on preventing exploitation of workers which was so common only ten years ago.
"Another big concern is false claims made by employees who infiltrate from a local competitor. One such claim can cost thousands of dollars in litigation, but even worse, permanently tarnish the reputation of your company." Explained DeMarco.
The modernization of China has brought rule of law to a nation of industrious people who seldom complain about working hours and conditions. Although the labor laws are welcomed by the local work forces, some government officials now fear foreign investment dollars may now start going to Vietnam or the Philippines where wages are still about 50% of Chinese wages.
One amazing phenomenon fond in China is that 80% of all Chinese employees who quit their job, don't expect to receive a final pay check. According to DeMarco, "This tells you just how bad these workers were exploited over the last two decades." Still, in comparison, Chinese labor laws are still somewhat vague and lenient in many areas like working hours and all are in one book that is only 489 pages as compared to U.S. labor laws that fill 16 volumes and over 12,000 pages of law books.
Labor disputes and walk-outs are not common in China but labor unions now exist and workers are getting well-educated about their rights. Labor relations law suits increased 9% over the last year but the China Trade Commission always recommends that employers always includes an arbitration clause in their contracts. Believe it or not 62% of Chinese workers now have employment contracts compared to 8% in 1990.
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