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Crime doesn’t pay - failure to pay wages now a criminal offence in China

Overview

In China from 1 May 2011, it became a criminal offence for a company to intentionally fail to pay wages as a result of an amendment implemented by the National People’s Congress to PRC Criminal Law. The new law states both the company and its responsible management will be liable to criminal prosecution for the intentional failure to pay wages. This is a significant departure from the administrative penalties that were previously applicable in such cases.

Baker & McKenzie’s employment law update also looks at the continuing push for collective bargaining and unionisation on a local level, new regulations to ban smoking in the workplace and the crackdown on foreigners in Guangdong Province.

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