Companies often use share incentive programs to motivate their employees. It is possible for a PRC employee of a foreign company’s Chinese subsidiary to participate in the foreign company’s employee share incentive plan (“SIP”). However, due to China’s currency controls, whether such an employee can actually “cash out” on the benefits of such a program
The PRC National People’s Congress last week promulgated a second discussion draft of the PRC E-Commerce Law (电子商务法草案). This statute is an attempt to gain greater control over China’s online consumer markets, which have exploded with little regulation. The lack of regulation has not slowed development of e-commerce in China. The success of online marketing
China has many special laws/rules related to protecting female workers, especially those who are pregnant, nursing, or on maternity leave. For example, Chinese law generally prohibits employers from unilaterally terminating the employment contract of a pregnant or nursing employee or an employee on maternity leave. The only exception to this is that the employee may be unilaterally
You should have a China-centric contract when doing business in China or even with China. See China Contracts: Make Them Enforceable Or Don’t Bother. This holds doubly true for employment contracts with China employees because those agreements are highly local. And though I should not have to say this, translating your existing employment agreements into
Your company is a service provider. Let’s say your business assists domestic and foreign entities register drugs with the FDA. You are contacted by a Chinese entity to do a registration. You submit a written, signed invoice to the Chinese entity and you require payment in advance. Within five days, you receive payment. But you
According to the Hong Kong Free Press (and a number of other newspapers) The Shanghai government this week “ordered the closure of one of the city’s top maternity hospitals saying it was illegally built on land owned by the armed forces, according to an official notice.” According to the article, the hospital, Shanghai International Women’s
The China legal world has been abuzz this last weekend about a Chinese court in Wuhan enforcing a California judgment against a couple of Chinese citizens. On one level this is indeed a huge deal, but on a practical level, this really does not change anything with respect to what you as an American company
China employees have many rights they cannot contract away. China employee working hours is a good example of this. As I have written previously, most China employees can only work under China’s “standard working hours system,” and in most places in China, that means a 40-hour work week — 8 hours a day and 5
Multi-level companies want to go into China. But as the following portion from a memorandum from one of our China compliance lawyers shows, multi-level marketing in any form is prohibited in China per the Regulations for the Prohibition of Pyramid Selling (2005). Article 7 of the Pyramid Selling regulations prohibits the following: Payment to promoters
Most Americans do not understand court corruption. Otherwise they would not so frequently say there is no point in bringing a lawsuit in such and such a court because it’s corrupt. Corruption influences (sometimes greatly) court cases, but neither as often nor as much as widely believed. When dealing with court corruption, one has to
