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万宝盛华集团——全球开创性的人力资源解决方案的领导者。旗下包括Experis、Manpower、万宝信华、西安外服、锐旗人力等品牌。

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HR in a New Labor Regime  

2008-10-13 17:46:02|  分类: 署名文章 |  标签: |举报 |字号 订阅

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       Compared to the Labor Law issued in 1994, the Labor Contract Law which will come into effective on Jan. 1, 2008 has stipulated and regulated the temporary staffing industry to meet the demand of the developing market. These changes presented in the areas of employer liabilities, the regulations of various forms of labor use and etc. Meanwhile, the law also puts forward higher standards on recruitment and HR management of employers, which are both oppotunities and challenges.

 The Labor Contract Law has filled the blanks of existing legal systems in areas such as management of the interests of contingent staff and ways of employment. What worth mentioning is that the new law has taken contingent staffing as an independent part and specified working hours, remuneration, conclusion of contracts, social insurance, termination of contracts and other issues, enabling contingent staffing specific laws to follow. Employers could choose more efficient forms of employment such as temporary employment according to the demands of their own business. 

With respect to the term of the contracts, the Labor Contract Law stipulated that if an employee has consecutively concluded fixed-term employment contracts twice, the employer shall sign an open-ended employment contract with the employee, unless the worker requests the conclusion of a fixed-term employment contract. This article will make employees and employers conclude more long-term and even open-ended employment contracts. With respect to the conditions of terminating the employment relationship and the standards of financial compensation, however, an employee may terminate his/her employment contract upon 30 days’ prior written notice to his/her employer. When an employment contract expires and the employer does not renew the contract, the employer should pay the employee financial compensation.   

To the employer, the extension of employment contract will increase the cost of dismissing staff. However, employer can take advantage of the open-ended employment contract to treat it as an incentive to retain employees. It is an urgent item on the HR agenda, which is to deal with the threat of talent shortage and lower the turnover rate of employees.

 These changes of the law challenged employers' management of staff relationship. Concerning the recruitment and daily HR operations, employers should intensify their legal consciousness, improve the HR management system and make it more precise and detailed to establish a harmonious employment relationship.

 Then, how should the employers improve their recruitment process and HR management?

 Firstly, as for the recruitment process, employers should choose the very right people to ensure the candidates match the positions. Employers should communicate with employees so that employees can know the employer better. Meanwhile, the agreements about the detailed articles in the contract should be reached to avoid disputes. Based on fairness principle, employers should give full play to the rights empowered by the new law. Examples are: specifying a term of service and the liability of termination on employees who receive professional or technical training funded by employers; for employees restricted by limitation on business strife, specifying agreements and statements on the term and the amount of liquidated damages, thus reducing the risk that may bring about by sudden turnover of core employees. 

Secondly, with regards to the corporate HR policy and regulation, employers note democratic management. With respect to the constitution, amendment or decision of the regulations or major events that directly involves the interests of employees, employer should communicate with employees or related authorities through the mechanism of co-decision and coordination between employers and employees. In this way, procedures can be democratic and legal. 

In the long run, employers should establish a harmonious employment relationship and talent-keeping system. Employers need to know more about China's labor market and employees; establish corporate value and culture that fit the special characteristics of China; design and conclude a set of detailed and lawfully employment agreements in order to inspire employees' sense of belonging and improve the effectiveness of HR management.

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