Provisions on the Negotiation and Mediation of Enterprise Labor Disputes

Provisions on the Negotiation and Mediation of Enterprise Labor Disputes Order of the Ministry of Human Resources and Social Security (No. 17) The Provisions on the Negotiation and Mediation of Enterprise Labor Disputes, as adopted at the 76th executive meeting of the Ministry of Human Resources and Social Security, are hereby issued and shall come into force on January 1, 2012. Yin Weimin, Minister November 30, 2011 Provisions on the Negotiation and Mediation of Enterprise Labor Disputes Chapter I General Provisions Article 1 These Provisions are formulated in accordance with the Labor Dispute Mediation and Arbitration Law of the People's Republic of China for purposes of regulating the negotiation and mediation of labor disputes of enterprises and promoting harmonious and stable employment relationships. Article 2 These Provisions shall apply to negotiation and mediation of labor disputes of enterprises. Article 3 Enterprises shall implement democratic management systems such as assembly of employees, assembly of employee' representatives and transparency of enterprise affairs, and establish collective negotiation and collective contract systems to maintain harmonious and stable employment relationships. Article 4 An enterprise shall establish a mechanism for communication and dialogue between the employer and employees and smooth the channels for employees to express their interest demands. Where an employee deems that the enterprise has any problems in such aspects as performance of the employment contract or collective contract, or implementation of the laws and regulations on labor and social security and its own labor rules and regulations, he or she may report the problem to the labor dispute mediation committee of the enterprise (hereinafter referred to as the “mediation committee”). The mediation committee shall verify the problem in a timely manner, and coordinate with the enterprise and require it to make rectifications or provide an explanation to the employee. An employee may also put forward any other reasonable appeal to the enterprise through the mediation committee. The mediation committee shall forward such appeal to the enterprise in a timely manner and provide feedback to the employee. Article 5 An enterprise shall strengthen the humane care of employees, care for the demands of employees, have concern for the mental health of employees, and provide guidance to employees on how to safeguard their rights rationally to prevent the occurrence of labor disputes. Article 6 The negotiation and mediation of labor disputes shall follow the principles of equality, free will, legality, impartiality and timeliness in accordance with the facts and relevant laws and regulations. Article 7 The administrative departments of human resources and social security shall provide guidance to enterprises on how to carry out prevention and mediation of labor disputes, and perform the following specified duties: (1) providing guidance to enterprises on complying with laws, regulations and policies on labor and social security; (2) urging enterprises to establish mechanisms for prevention and warning of labor disputes; (3) coordinating trade unions and organizations of representatives of enterprises in their establishment of emergency mediation and coordination mechanisms for major collective labor disputes, and jointly promoting the prevention and mediation of labor disputes of enterprises; and (4) examining the organizational construction, institutional construction and team construction of mediation committees under their respective jurisdictions. Chapter II Negotiation Article 8 Where a labor dispute arises, one party may negotiate with the other party on reaching a resolution by scheduling a meeting or interview or any other means. Article 9 An employee may request the trade union of the enterprise where he or she works to participate in or assist him or her in the negotiation with the enterprise. The trade union may also take the initiative to participate in the negotiation and handling of labor disputes to maintain the legitimate rights and interests of employees. An employee may authorize any other organization or individual to conduct negotiation on behalf of him or her. Article 10 After one party makes a request for negotiation, the other party shall actively make an oral or written response. If the other party fails to respond within five days, it shall be considered unwillingness of the other party to negotiate. The time limit for negotiation shall be agreed upon in writing by the parties concerned, and if no agreement is reached within the agreed time limit, it shall be considered a negotiation failure. The parties concerned may stipulate the extension of the time limit in writing. Article 11 Where an agreement is reached through negotiation, a written settlement agreement shall be concluded. The settlement agreement ......