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China To Issue New Rule On Employee Training

August 13, 2009
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Labor

The Legislative Affairs Office of the State Council of China has released a rule on vocational training and assessment and is soliciting public opinions for the document.

The rule states that employers shall take 1.5%-2.5% from employees' pre-tax salaries and use it for training, and employers' expenditure on the training of first line employees must not be less than 70% of the company's total education and training fees. It states that companies that fail to do so shall be asked to rectify the situation within a given deadline, or they will be fined between CNY10,000 and CNY50,000.

The rule states that the deduction of the employee training fees and its use shall be agreed upon by the employee representative council and how the money is spent shall be reported to the employee representative council and supervised by the employees.

It is also learned that China will draft a rule on vocational classification and this is to be done by the human resource and social security department of the State Council and the relevant departments and industry organizations.

Tags: deduction, employee council, fine, State Council, training

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