Article 1 The regulations are formulated in line with "The Labor Law of the People's Republic of China" and other relevant laws and decrees and Shanghai's actual conditions, aiming at improving the management of labor work and personnel in Shanghai's FFEs to promote the development of the FFEs.
Article 2 The regulations are applied to the FFEs established within the Shanghai administrative region and their employees.
FFEs referred hereof are Sino-foreign joint equity ventures, Sino- foreign cooperative ventures and solely foreign-funded enterprises.
Article 3 FFEs should work out and improve their own regulations and systems in a strive to guarantee that their employees can enjoy proper labor right and should perform their work well.
CHAPTER TWO RECRUITMENT, DISMISSAL, AND RESIGNATION OF EMPLOYEES
Article 4 FFEs may make their own decision on organizational setups and the size of staff according to their needs. Their plans of employment should be reported to administrative departments of labor and personnel for the record and be carried out under the guidance of the above mentioned departments.
Article 5 FFEs may recruit professionals, technicians, managing personnel and skilled workers in need from among either the personnel recommended by the Chinese partner and relevant authoritative departments of the industry or the graduates from colleges, secondary technical schools and technical training schools. They may also make open recruitment in the city to employ the persons who have been proven as qualified for the work.
The employees recruited by the FFEs should have the permanent residence in Shanghai. People from other provinces and cities should be recruited in line with relevant regulations of Shanghai; whereas personnel have to be employed from foreign countries or Taiwan, Hong Kong and Macao regions, the recruitment should be made in line with relevant regulations of China. School students and personnel who are not allowed to be employed by laws or decrees should not be employed by FFEs.
Whereas a FFE wants to openly recruit a personnel who is employed in another unit in the city, the former employer of the personnel should support the free transfer of the personnel concerned. Whereas there is any dispute in the recruitment, the relevant labor and personnel departments should help settle and make arbitration.
Article 6 In recruitment of Chinese personnel by joint equity and cooperative ventures set up by Shanghai and foreign businesses, priority should be given to the employees originally working at the original Shanghai businesses. For personnel the Shanghai partners can not provide, they may be recruited from among other businesses under the same department in charge of the Shanghai partners. In case a disbandment of the Shanghai partner due to a merger of other reasons, the employees of the Shanghai business not recruited should be assigned by the Shanghai partner or by its department in charge.