China issues regulations to protect overseas workers

June 12, 2012 6:44 am
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Foreign labour service enterprises will need no less than 3 million Yuan in an account/XINHUA
BEIJING, Jun 12 – The Chinese government has issued new regulations for the management of foreign labour service enterprises to protect workers sent overseas and boost the development of foreign labour cooperation.

The regulations will go into effect starting on Aug. 1.

Foreign labour service enterprises will each be required to create a bank account containing no less than 3 million Yuan ($47.62 million) to be deposited in banks designated by authorities in order to cover potential risks, according to the new rules.

The funds will mainly be used to cover service fees, wages, compensation for losses and emergency expenses when labour service enterprises fail to pay, the circular said.

Foreign labour service providers are not allowed to charge any service fees or ask for deposits or financial guarantees from the workers they have signed labour contracts with, the circular said.

Foreign labour service corporations should not allow other companies or individuals to recruit workers on their behalf or allow their employees to work for businesses related to gambling or pornography, it said.

And they should also buy personal accident insurance for their workers, except when foreign employers have promised to cover insurance fees, the circular said.

Foreign labour service companies should send administrative staff to accompany teams of overseas workers consisting of more than 100 people, according to the regulations.

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