Regulations protect expat Chinese workers

BEIJING - The Chinese government has issued new regulations for the management of expatriate Chinese labor service enterprises to protect Chinese workers sent overseas and boost the development of expatriate labor cooperation.

The regulations, which will go into effect starting on August 1, were posted on the central government's website on Monday.

Expatriate Chinese labor 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 Expatriate Chinese labor service enterprises fail to pay, the circular said.

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

Expatriate Chinese labor 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.

Expatriate Chinese labor service corporations should also buy personal accident insurance for their workers, except when foreign employers have promised to cover insurance fees, the circular said.

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

They should also help expatriate Chinese workers protect their legal rights, the regulations said, adding that companies will be obliged to provide compensation that employers fail to provide.