Recently it was reported from some regions that some employers do not sign employment contract with its employees and determination of employment relation is difficult when labor disputes occur, which makes it difficult to protect lawful rights and interest of employee and affect on harmonious and steady employment relation. In order to regulate recruiting and using of workforce,protect lawful rights and interests of employees and promote social stability, this circular on relevant matters concerning establishment of employment relation is made as follows:
Where an employer fails to sign employment contract with its employee, employment relation is established if the following conditions are satisfied.
Both the employer and the employee are qualified party according to relevant laws and regulations;
Where an employee recruited by an employer satisfies conditions defined in Section One, the employer shall sign employment contract with the term agreed by both parties. If both parties fail to reach agreement on the term of employment contract, any party may propose to terminate employment relation. But where the employee satisfy the conditions for signing open-ended employment contract, the employer shall sign the contract if the employee proposes to sign open-ended employment contract.
Where the employer propose to terminate employment relation, the employer shall pay the employee a monthly salary fore each year of service for the employer as economic compensation/severance pay .
Where construction enterprises, or mineral enterprises contract project or work or operation to organization or individual who have no power to recruit and hire employees, qualified principals who have power to recruit employees shall act as employer for employees employed by such contractors.
Where there is a labor dispute over existence of employment relation between employee and employer, any party may apply for arbitration to labor dispute arbitration commission with jurisdiction.