Employment Law Update: New Framework for Dispatch Services in China

18 March 2014
The Chinese legal framework is always in development, but no sector has received so much attention lately as that of dispatch services. The business of employing people and then dispatching them to another company for work has come under severe scrutiny, with a huge impact not only on foreign-invested companies that are engaging in this […]
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Registered Capital Focus of Amendments to PRC Company Law

7 January 2014
A legal development announced for 2014 will have a huge impact on how foreign investors plan their investment in China. The amended of the PRC Company Law, approved by China's top legislative organ on 28 December 2013 and to become effective on 1 March 2014, radically changes the way that registered capital is managed under […]
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Selling Offline and Online in China - How to establish a Trading WFOE / FICE

26 December 2013
Several structures are available to a foreign investor who invests directly in China. One commonly-used legal entity is the WFOE, which is a limited liability company that is wholly owned by its foreign investor(s); a Wholly Foreign Owned Enterprise.  However, setting up a limited liability company does not mean that it can engage in every […]
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Lawful Termination in China: Severance Pay Calculations and Conditions

17 December 2013
The Labor Contract Law provides an exhaustive list of situations under which an employer may lawfully dismiss its employee. It depends on the situation whether severance pay is required; severance pay (or termination pay) is the amount an employer has to pay to an employee that is lawfully terminated. Situations that require severance pay include […]
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Overseas Employment in China: New Rules on Secondment

17 December 2013
Over the past few years, Chinese tax authorities have been focusing increasingly on secondment (also referred to as dispatchment) arrangements of foreign companies in China. Under a secondment arrangement a foreign company assigns a foreign manager to its Chinese subsidiary, while the employee remains an employee of the foreign company. This structure is often used […]
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SPC Orders Courts to Publish Judgments Online

2 December 2013
China's is a civil law system, and one important consequence is that decisions made by one Chinese court are not binding on other Chinese courts. Nonetheless, precedent can be a strong factor when arguing cases, especially so in a society where courts want to avoid being proved wrong. One major challenge for lawyers, so far, […]
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Time to Protect the Chinese Language Translations of International Trademarks

24 September 2013
In cooperation with Lisa Qin Foreign companies should register their Chinese-language trademarks in China, to ensure protection under Chinese law. But for those that don't or haven't, a new court case offers some hope.  As the Chinese market continues to grow at a rapid pace, an increasing number of international and transnational companies seize business opportunities […]
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Foreigners residing in China: Important visa application and extension issues

30 August 2013
The PRC Exit-Entry Administration Law took effect on 1 July, and the supplementing Exit-Entry Administration Regulations were implemented on 1 September 2013. Together these new policies implement stricter requirements for expatriates that work in China for shorter or longer periods. !!! All expatriates and companies hiring expatriates are strongly advised to review their practices, and […]
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Managing New Risks: Time to Revise Arbitration Clauses

31 July 2013
This article was first published in Corporate LiveWire on July 26, 2013   For many foreign companies and their Chinese subsidiaries dealing with Chinese counterparts, arbitration is the preferred choice to resolve disputes. Perhaps the single most important reason for the popularity of arbitration in China, is that it avoids the risk of having to […]
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Companies Targeted for Illegally Hiring Foreign Interns

21 June 2013
In recent weeks, several of our clients in Shanghai were raided by the local Public Security Bureau (“PSB”, China's police). The PSB was looking for evidence of these companies hiring foreigners or foreign interns without the proper papers. Chinese laws establish that foreigners can only work in China if they obtain a proper employment permit […]
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