The Ministry of Labor and Personnel December 24, 1983

These Measures are specially formulated in order to facilitate the smooth implementation of the "Provisions for Labor Management in Chinese-foreign Equity Joint Ventures" (hereinafter referred to as "Management Provisions") and to facilitate the development of Chinese-foreign equity joint ventures (hereinafter referred to as "joint ventures").

Article 1 The labor plans of a joint venture, after being decided by the board of directors, shall be filed with the department in charge of the venture and the local labor personnel department and shall be brought into line with the state labor plan.

Article 2 New workers to be employed by a joint venture according to its labor plan shall be openly recruited in line with the relevant policies of the State in the region defined by the labor personnel department and shall be selected for employment on the basis of their qualifications through testing.

If the newly-recruited workers have to undergo training, the joint venture may fix a period of time for training according to its needs. All the trainees must be tested by the joint venture at the end of the training period and selected for employment on the basis of their qualifications. Those still unqualified shall be retrained or sent back.

Article 3 If the engineers technicians and managing personnel in the locality cannot satisfy the quantitative needs of the joint venture, the joint venture may recruit them from outside the region upon approval by the labor personnel department in the relevant province, municipality or autonomous region and with the consent of the labor personnel departments in the regions concerned.

The joint venture may fix a probation period for the newly-recruited personnel and the personnel recommended by the department in charge of the venture or the local labor personnel department in line with the Article 3 of the Management Provisions. They must be formally employed if they are proved to be qualified during the probation period. Those unqualified shall be sent back and should be accepted by their original units if they are permanent staff and workers.

Article 4 Apart from the agents of the foreign participant in a joint venture, all the staff and workers of a joint venture shall be recruited from among Chinese people, provided the Chinese side can provide the qualified Chinese people.

Article 5 The employment of personnel of a joint venture shall be conducted in the form of signing a labor contract which, apart from the relevant matters listed in the first clause of the Article 2 of the Management Provisions shall stipulate the effective period of contract, conditions for its modification and termination and the rights and obligations of the venture and its staff and workers.

The labor contract shall be concluded by the joint venture and the venture's trade union organization through consultations (or by the joint venture and representatives of its staff and workers if the trade union is not yet organized). and in accordance with Article 2 of the Management Provisions the contract shall be submitted to the labor personnel department in the province, municipality or autonomous region for approval. The labor personnel department in the province, municipality or autonomous region may authorize the labor personnel department in the county where the venture is located to ratify the contract.