Tag Archives: Employment

Dec. 2014 to Feb. 2015 China Bulletin

Foreigners Performing Contracts in China Impacted:

On January 1, 2015, new visa regulations came into effect impacting short term (90 days or less) assignments to China.  They require foreign nationals providing technology, research and other services to counterparties in China for any period of less than 90 days to obtain a Z (work) visa.  Applicants should schedule approximately a month to complete the application procedures, but application time for an M visa should not change.  Participants in sports training, filming, fashion and commercial performances are also affected by the new regulations. Continue reading

August-September 2013 China Bulletin

In August, 2012, the China State Intellectual Property Office (SIPO) issued draft regulations that caused consternation among employers because, if promulgated, they would have created substantial new administrative burdens and legal uncertainty with regard to remunerating employee inventors (see Draft Rules on Service Inventions, November-December, 2012, China Bulletin).  The draft regulations were not promulgated, but in January, 2013, SIPO and several ministries did issue opinions that apply to state-owned enterprise employees (see Service Inventions, January-February, 2013, China Bulletin).  In a more recent development, the Shanghai High People’s Court issued the Guidelines on Adjudication of Disputes Involving the Rewards and Remuneration of Inventors or Designers of Service Inventions and Creations (the Guidelines) on June 25th.  This opinion, posted and then removed from the Court’s website, should, if followed by lower courts, provide substantial reassurance and certainty to employers in Shanghai. Continue reading

January-February 2013 China Bulletin

In November, the State Intellectual Property Office released the Draft Service Invention Regulations (reviewed in the November-December China Bulletin).  Of particular concern in the regulations is an expansion of the scope of service inventions to know-how, requiring employers to track inventions and inventors themselves post-employment and potentially across generations.  Several provision in the regulations also would expose employers to new claims by employee-inventors.  The American Bar Association, the US-China Business Council and other organizations and businesses have expressed concern about several provisions of these regulations to the State Intellectual Property Office (SIPO). Continue reading

January-February 2013 China Bulletin

The Employment Contract Law (ECL) was revised on December 28, 2012, with effect from July 1, 2013, to restrict employers’ use of secondees, a widespread practice in China, by 1) clarifying that “temporary” means no more than six months, 2) limiting “substitute” secondments to periods of time when another employee is unable to work or is on leave, and 3) defining “auxiliary” to mean not engaged in the employer’s principal business (see June China Bulletin). As revised, the ECL now expressly states that the number of seconded employees an employer uses may not exceed a “certain percentage” of its total labor force. The specific percentage is not stated. Continue reading

November-December 2012 China Bulletin

In November, the State Intellectual Property Office (SIPO) released the Draft Service Invention Regulations for a comment period, which ended on December 3rd.  The draft regulations have attracted considerable attention and comment because of their potential to impose an unreasonable cost burden on R&D in China.  The burden arises less from compensation awarded to inventors than from the notice, accounting and administrative burdens the draft regulations would impose on companies that employ inventors, and related exposure to penalties and liabilities. Continue reading