China
Model cases for labor disputes
Impact date: 9 April 2025 On 9 April 2025, the PRC Ministry of Human Resources and Social Security and the Supreme People’s Court jointly issued the fourth batch of model cases for labor disputes, intended for reference by local labor dispute arbitration committees and courts in their proceedings.
Below are the arbitration/court opinions on three typical labor disputes selected by the Supreme People’s Court:
- Employees suffering a work-related injury are not entitled to request an extended “suspension period for work with pay (工伤停工留薪期)” simply based on diagnosis certificates issued by the hospital. Any extension must be assessed and approved by the competent labor capability assessment committee
- Employers are not entitled to unilaterally adjust the position of any pregnant employee (including a pay cut), unless the employee cannot adapt to her original work during pregnancy as evidenced by valid medical certificates (in such cases, the employer may reduce her workload or arrange for other suitable tasks)
- Employers can only establish a post-termination non-compete clause or agreement with senior management staff, senior technicians, and other employees bound by confidentiality obligations. For employees not subject to confidentiality obligations (e.g. a security guard in the model case), any post-termination non-compete clause or agreement with the employer is invalid
Employer implications/action needed Under PRC law, local people’s courts at all levels shall refer to the guiding cases issued by the Supreme People’s Court when adjudicating similar cases. To avoid unnecessary disputes, employers should ensure that their workplace policies and practices comply with applicable laws and regulations, as well as the model cases mentioned above.
New legislation on Labor Capability Assessment
Impact date: 1 July 2025 On 13 May 2025, the PRC Ministry of Human Resources and Social Security and the National Health Commission jointly issued the Administrative Measures for Labor Capability Assessment (“Measures”).
Here are the key highlights of the Measures:
- Previously, national legislation only regulated the assessment of labor capability for employees with work-related injuries, lacking a unified system for those with disabilities due to non-work-related illnesses or injuries. The Measures now extend the assessment to include employees with disabilities from non-work-related causes
- The application process has been standardized for both employees with work-related injuries and those with disabilities from non-work-related causes. Both scenarios will involve two levels of assessment: an initial assessment and a reassessment, with the conclusion of the latter being final and definitive
- The Measures also streamline the application process by reducing unnecessary documentation and shortening the delivery time for the assessment conclusion
Employer implications/action needed Employers should pay attention to the existing or forthcoming local ancillary regulations, and strictly comply with the Measures and relevant local regulations to ensure a timely application for labor capability assessments for eligible employees (if applicable).
Employer risk N/A
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