(Yicai Global) Dec. 28 -- The government of the eastern Chinese coastal province of Shandong recently issued new rules to standardize layoffs in the current economic environment.
These mandate that proposed layoffs of more than 20 staffers or culls of fewer than 20 workers where these represent over 10 percent of the total workforce must be reviewed and passed by company employee councils.
The current policy of temporarily lowering the total proportion of unemployment insurance levied from both the employer and employee from 3 to 1 percent will also be extended and stay in effect, per the same guidelines on stabilizing and expanding employment Shandong's provincial government released on its website yesterday.
Companies that cannot afford employees' base salaries for more than three straight months or those that cannot operate their business or engage in normal production for over three months and only provide employees with basic living expenses can temporarily suspend and postpone their payment of social insurance fees after gaining approval from regulators, and they are also free of overdue penalties during such period.
About one-third of Chinese provinces have issued specific implementing measures since China's cabinet the State Council issued new guidelines to promote employment on Dec. 5, per data.
Most focus on cutting taxes and lowering fees, reducing electricity prices, raising the rate of export tax rebates and other policy measures that ease the burden on firms.
Editor: Ben Armour