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China Employment Law: The Myths and the Realities of Employee Severance

Posted in Legal News

Generally speaking, once an employee has completed his or her probation period, termination requires severance payment. Note also that even when the employer and the employee mutually decide to terminate their employment relationship, a severance payment is usually required if the employer is the one that initiated the conversation about ending the employment relationship. Under the PRC… Continue Reading

China Employee Terminations and the Importance of Getting It Right Beforehand

Posted in Legal News, Litigation and Arbitration

Our China employment lawyer, Grace Yang has been writing often of late regarding the finer points of China employment law, in large part because Chinese downturn has led to a substantial increase in ill-conceived employee terminations. See e.g., Grace’s relatively recent posts on China Employment Laws and Lifetime Employment, China Employee Vacation Law, China Employee Probation,… Continue Reading

China Employment Laws and Lifetime Employment

Posted in Basics of China Business Law, Legal News

In China Employment Contracts: Ten Things To Consider, I wrote about the importance of selecting an appropriate initial fixed employment term because in most places in China employees are automatically converted into “open contract” employees when the fixed term concludes. An open-term labor contract means the employer must (with very few exceptions) retain the employee until his or… Continue Reading

China Institutes New Student Intern Rules

Posted in Legal News

“It just goes to show you. It’s always something. If it’s not one thing, it’s another.” Roseanne Roseannadanna (Gildner Radner) Now I know Roseanne Roseannadanna was never referring to China’s labor laws when she would say the above, but considering how frequently they change (especially lately) she should have been. China wants its labor laws to… Continue Reading

China’s Trademark Laws vs. the Biggest Company in the World, or Apple’s Cruelest Month

Posted in Basics of China Business Law, China Business, Legal News

After the month it just had, Apple is probably sick of hearing T.S. Eliot references. First China cut off access to iTunes movies and books. Then Apple reported a 26% drop in quarterly sales in China, Hong Kong, and Taiwan, after which Apple’s stock price took a header. Topping it all off, last week China’s… Continue Reading

China Due Diligence and China Business Licenses

Posted in Legal News

Our China lawyers are always asking our clients to secure a copy of their Chinese counter-party’s China business license because a quick review of that license so often provides us with valuable information. I was reminded of that today when I came across a 2012 email while doing a company search. This email is from one… Continue Reading

China and The Internet of Things: Who Owns What?

Posted in Basics of China Business Law, China Manufacturing, Internet, Legal News

China (Shenzhen mostly) remains the primary destination for manufacturing of small electronic consumer products. And since Internet of Things (IoT) products are red hot, this means our China lawyers are getting a steady diet of China IoT legal matters. The issue we see on a day to day basis is this: the IoT product has now reached the… Continue Reading

Who Should Sign Your China OEM Agreement? Not Some Hong Kong Company if You Can Help It

Posted in Basics of China Business Law, China Manufacturing, Legal News

Got the below great comment/question today: I would love to see you write about Taiwan / HK being “not” China, but from a different perspective. What advice do you give to a foreign company that plans to engage TW-based (or truly HK-based, e.g. been based in HK for 30-40 years) manufacturer, and said TW/HK company… Continue Reading

China Employment Contracts: Ten Things To Consider

Posted in Basics of China Business Law, Legal News

Following in the footsteps of our recent post Forming a China WFOE: Ten Things To Consider, I present to you: China Employment Contracts: Ten Things to Consider. Here goes, the top ten things you should consider when employing anyone in China. Term of employment. China’s employment system is a contract employment system. This means each employee… Continue Reading

China, Indiegogo, Kickstarter, The Internet of Things, Marshall Goldsmith, and Suing Your Lawyers and Sourcing Agents Because It Is Getting Really Really Bad Out There

Posted in China Manufacturing, Internet, Legal News

One of our internet of things hardware clients recently told me how none of what he has learned about the need to protect his intellectual property from China had ever been even hinted at in any of the many IoT seminars he had attended nor in the Indiegogo Hardware Handbook he had “religiously consulted” before he did… Continue Reading

China Work Injury Insurance: A Few New Rules

Posted in Legal News

Late last month, China’s Ministry of Human Resources and Social Security (“MOHRSS”) implemented  Opinions on Several Issues Concerning the Implementation of the Regulation on Work Related Injury Insurance (II)(人力资源社会保障部关于执行《工伤保险条例》若干问题的意见(二))(the “Opinions”). The Opinions offer some (but as is fairly typical, not enough ) clarification on various current regulations. This post highlights a few key aspects of… Continue Reading

China Employer Rules and Regulations and Why You Must Have One

Posted in Basics of China Business Law, Legal News

As I wrote in China Employment Contracts: If Yours Are Not Current, You Have A Problem, China employers must have written labor contracts with each of their full-time employees. Not having a written labor contract exposes employers to penalties (to their employees) administrative fines and the risk of being deemed to have entered an open-term labor contract with… Continue Reading

Worthless China Contracts: First, Let’s Sue All The American Lawyers

Posted in Basics of China Business Law, China Manufacturing, Internet, Legal News

No more Mr. Nice Guy. In the last year or so, China has rapidly stepped up its technology game. It’s larger, better known companies (and many of its smaller and lesser known companies as well) are rapidly seeking to up their technology game. To put it bluntly, their first goal is to get high end… Continue Reading

China Technology Licensing Versus China Joint Ventures: Same Same

Posted in China Business, Legal News

My firm’s China lawyers have recently been hit with an influx of American tech companies with the following characteristics: They have a good, but not great technology (chip, internet of things, environmental, hardware or software). They were heavily funded but they have only around six months of cash left, at their present burn rate. They… Continue Reading

Getting Sued in China: Get Ready Now

Posted in Legal News, Litigation and Arbitration

Yesterday’s post, China Civil Litigation: Tain’t No Big Thing, was on how litigation risks for foreign companies doing business in China or with China are considerably lower than, for instance, the litigation risks those companies face by doing business in the United States or with the United States. My explanation for this was two-fold: one, damage… Continue Reading

China Non-Competes: How To Choose Your Contract Damages Amount

Posted in Legal News

In previous posts, I talked about various legal issues surrounding China employee non-compete agreements/provisions. This post briefly explains how a non-compete contract damages provision works. Generally speaking, an employer in China is not allowed to impose a penalty on one of its employees, not even by agreement. An employee non-compete agreement is one of the… Continue Reading

China’s New Online Publishing Rules

Posted in Basics of China Business Law, Internet, Legal News

On March 10, 2016, the PRC government will impose new rules to govern online publishing in China. These are the Online Publishing Service Administration Rules (OPS Rules), promulgated by the State Administration of Press, Publication, Radio, Film and Television (SAPPRFT) and the Ministry of Industry, Administration and Technology. Under the rules, all entities that intend… Continue Reading

China Air Pollution: It is YOUR Issue Too

Posted in China Business, China Manufacturing, Internet, Legal News

Thought-provoking article by InTouch Quality on why foreign companies doing business in China should consider their connection to China pollution. The article is entitled, China’s Pollution: A Story of Imports and Canned Air and it starts by discussing China’s well-known pollution problems and then segues into how “importers share some of the responsibility for growing pollution concerns.” The article… Continue Reading

China Employee Vacation Law

Posted in Legal News

Under Chinese labor laws, employees who have worked continuously for one year are entitled to paid annual leave (年休假). The statutory vacation period, based on years of service, is as follows: More than 1 and less than 10 years service: 5 days vacation More than 10 and less than 20 years service: 10 days vacation… Continue Reading