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  • 2018-08-15
  • 4 minutes Read
Is it Legal to Pay Social Insurance in the Name of a Third Party?

Company A is headquartered in Shanghai. The employees who are working in the Hangzhou office of Company A, and they require Company A to pay social insurance in Hangzhou. Since Company A has not establish a branch in Hangzhou, it could not obtain an independent social insurance account, it has to entrust a third party to sign labor contracts with those employees and pay social insurance for them. The HR department is still worried about this arrangement. In practice, due to many reasons, it is not rare for a company to entrust a third party to pay social insurance for…

  • 2018-08-01
  • 3 minutes Read
The First “White Paper on Trials of Cases with the Non-competition Restrictive Covenant Disputes was Issued by Shanghai No.1 Intermediate People's Court” on July 5, 2018.

On 5th July, 2018, Shanghai No.1 Intermediate People’s Court issued the first “White Paper on Trials of Cases with the Non-competition Restrictive Covenant Disputes” (hereinafter referred to as the “White Paper”). The “White Paper” has selected 5 typical cases, and put forward the judicial judgement standards in dealing with the relevant disputes from 5 aspects, which has a certain guiding significance for the practical operation. 1.Where an employee is obliged to the non-competition restrictive covenant, shall not be employed by another employer which engages in production or business in the same type of products or provision of the same type…

  • 2018-08-01
  • 3 minutes Read
The Determination on Changing Registered Trademark without Approval

In commercial activities, in order to cater to the promotion design style or for other reasons, many trademark owners might change registered trademarks. For example, if a registered trademark containing characters and pictures, the owner might use the 2 elements separately. However, these changes may be accompanied with legal risks. Article 49 of “Trademark Law” prescribes that where, in using a registered trademark, the trademark registrant changes the registered trademark without approval, ……the local administrative department for industry and commerce shall order the registrant to make correction within a prescribed time limit; and if the registrant fails to do so…

  • 2018-08-01
  • 4 minutes Read
How Important Leave Request Procedure Is?

Due to the bone hyperplasia, Jia submitted the application for sick leave and proofs to the department head. The department head approved the application, but the HR department refused to approve, because proofs did not meet the requirements, and the general manager did not approve as well. Later, the company dissolved the labor contract with Jia, by the reason that proofs submitted by Jia did not meet the requirements as stipulated in the “Employee Handbook”, in which an employee should provide the diagnosis of the hospitals designated by States Social Security Administration, the records of the diagnosis(medical records, payment receipts)…

  • 2018-07-15
  • 3 minutes Read
“The Opinions of the Central Committee of the Communist Party of China (CPC) and the State Council to Comprehensively Enhance Ecological and Environmental Protection and Win the Battle Against Pollution” (“Opinions”) has been released

The CPC and the State Council have jointly released the “Opinions” on 24th June 2018. The “Opinions” has mentioned the comprehensive objectives of the environmental governance, the guidance on the industry administration, the plan on the governance of atmosphere and water, and so on. For enterprises, the industry administration, the encouraging trends, and the supervision methods are worthy of attention. 1.Industry administration and the encouraging trends On the industry administration, the “Opinions” proposes to adjust the industrial layout, scale and structure of those industries which are not in line with the ecological function arrangement, which include: (1)To centralized rectify the…

  • 2018-07-15
  • 4 minutes Read
Financing Leasing vs Operating Leasing

Zhu and Company Y signed a financing leasing contract, in which both parties agreed that Zhu would purchase a set of equipment and lease to Company Y, after the lease expired, if Company Y could pay off the financing principal and the lease fee, then the set of equipment should belong to Company Y, otherwise, the lease period shall be extended. Later then, Company Y defaulted on the lease, Zhu brought a lawsuit against Company Y. Company Y defended with the excuse that Zhu had not obtained the financial business license, so the contract should be deemed as invalid. The…

  • 2018-07-15
  • 3 minutes Read
How to Deal with the Employees’ Complaints on the Internet?

Lau did not get the year-end bonus, because his year-end assessment was poor. He complained about the poor welfare in the company’s WeChat group, and encouraged other employees to strike. The company dissolved the labor contract by the reason that Lau had made mischief. But the company lost in the labor arbitration. Withe the popularity of the Internet, some employees would express their opinions or vent emotions on the internet, such as via WeChat, Weibo, BBS and so on. Some of those words might be a statement of truth, while others might be fabricated contents, and even some are only…

  • 2018-05-19
  • 2 minutes Read
“Provisions of the Supreme People's Court on Strictly Regulating the Issues on Extending the Time Limit for Trial and Postponing the Hearing for Civil and Commercial Cases” (“Fa Shi [2018] No.9”) has been implemented on 26 April 2018

Although the “Civil Procedure Law” has prescribed specifically on the time limit for trial and the time for hearing, in the judicial practice, for many cases, the time limit for trail was extended, and the time for trial was postponed, which brought unfavorable effects to the plaintiff or defendant. In order to prevent such bad practice, Fa Shi [2018] No.9 was released on 23 April, 2018. The following points are recommended to be focus. 1.To set a review and approval period on the application for extending time limit for trial The “Civil Procedure Law” prescribes if an extension of the…

  • 2018-05-19
  • 4 minutes Read
Dispute Resolution Clause is Easy to be Ignored

A Nanjing company and a Harbin company entered into a sales contract, in which the dispute resolution clause was stipulated as “any disputes arising from this contract shall be settled by the Arbitration Institution of Jiangsu Province”. Later then, the Harbin company failed to pay on time, the Nanjing company applied for arbitration to the Nanjing Arbitration Institution, but it was informed that the agreement on the dispute resolution was invalid. Finally, the Nanjing company had to bring a lawsuit against the Harbin company to the court in which the Harbin company was located. Such cases are not rare. Many…

  • 2018-05-19
  • 3 minutes Read
When the Probation Period Encounters the Medical Treatment Period

Chen and Company A entered into a labor contract, in which the term of the contract was prescribed as 1 year, and the probation period was 1 month. During the probation period, Chen got sick, and the hospital issued a 6months sick leave. Company A dissolved the labor contract by the reason that Chen was unhealthy and did not meet the employment requirements. Although an employer could set a requirement on physical health, once an employee could not work due to health reason, in practice, we have not searched any judgments which support the employer. From the legislative purpose of…