Most major jurisdictions have pay equity laws, but their approach is far from uniform. Global companies need to evaluate compliance with these laws on a country-by-country basis whilst simultaneously addressing their compensation policies globally.
A sample of the rules across several countries helps to identify trends that can drive effective global policies.
Australia
The Australian Workplace Gender Equality Act of 2012 mandates equal pay for equivalent or comparable work. There are annual reporting requirements for employers with 100 or more employees. Those reports must include the following indicators: gender composition of the workforce, gender composition of governing bodies, and equal compensation between men and women.
Employers are penalised by being publicly named if they fail to lodge a public report on time, or inform employees or other stakeholders that a public report was lodged, or give the requested compliance data under the Act.
With more and more expatriates working in China, and some even applying for long-term residence permits, complicated applications procedures have been deemed an impediment to attracting more talented expatriates. In later 2015, for the purpose of facilitating the establishment of the “technology innovation center,” Shanghai issued several local policies encouraging more senior level expatriates to work in Shanghai. In March 2016, a similar set of local policies were issued in Beijing after those policies were successfully implemented in Shanghai. The following provides a brief overview of the new policies and practices for expatriates working in China. Easier Procedures for Senior Level Expatriates to Apply for Working Permits
Generally, an expatriate must meet the following requirements to successfully acquire a working permit in China: (1) be between at 18 and 60 years old (60 years old is the general retirement age in China); (2) have working experience (in practice, at least two years of full time working experience is required); (3) have no criminal record; and (4) have received a job offer from a Chinese entity.
According to new local policies, if an expatriate is a “senior level expatriate,” the expatriate may apply for a work permit in China even if the expatriate is older than 60 years of age. Moreover, he or she may be issued a special “R visa” instead of a normal “Z visa” for working in China. Finally, the corresponding procedures for applying for a long-term residence permit in China will also be simplified for expatriates falling in this category.
As for the definition of “senior level expatriate,” the two policies provide several examples: (1) one who has received famous international awards or received national level awards from China; (2) a famous professor or scholar; (3) an individual who holds a senior level management position in headquarters of foreign-invested companies.
In addition, the “working experience” requirement has changed. Previously, newly graduated foreign students had no chance of acquiring a work permit in China. According to these two policies, those foreign students who received master’s degrees or above in China can now apply for a work permit in designated areas, such as the free trade zone of Shanghai and Zhong Guan Cun, a technology hub in Beijing that is known as the “China’s Silicon Valley”.
No Work Permit Is Required for Short-Term Work in China
Under the new policies, another change is that an expatriate may not be required to apply for a working permit in China if the total working period is within three months and the short-term work is in the following areas: (1) visiting a Chinese partner to complete certain technical, scientific research, management or guidance work; (2) conducting training in a sports agency in China; (3) shooting films and fashion shows; (4) engaging in foreign-related commercial performance; and (5) other circumstances identified by the department of human resources and social security.
Previously, an expatriate would go through “4-step” procedures for working in China legally: (1) (the employer) applies for a [...]
“Massive terminations” occur in China when an employer terminates more than 20 employees or more than 10 percent of its total employees at one time. Even though there are no official statistics on massive terminations of employees in China, recent news reports indicates an increase based on overseas investment leaving China. This article provides an overview of some of the common characteristics of massive terminations and of the issues companies with Chinese employees should consider in implementing a massive termination.
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