When carrying out business operations it is important to consternate on external factors that affect the recruitment and people factor. Preparing and implementing strategies would not be accurate with the host country situation if management does not consider those external factors very carefully.
Industrial relations involve employees and their unions, employers and their associations and governments and the industrial tribunals that make regulations governing the employment relationships (Stone, 2005). In China which comprises of 1.3 billion of population, 43.62 million belongs to working crowd. Like most of other Asian countries China is also allow workers to get together and form unions within their company or industries. And workers in China display a greater degree of spontaneous unity in forming well planned and coordinated ‘wildcat strikes', which are accommodated by the government and the official trade unions at top level.
Therefore our company has to aware on labour laws of China as our host country in order to establish a good business relationship where China equally treats inhabitants and migrants. Otherwise employees may encourage going for collective actions which are common in China for the betterment or welfare employees. That type of collective actions on the other hand may hinder the ability to attract skill workers and retain them in host country.
Proper working conditions are essential in any company. Being in the management consultancy business the importance is even enhanced. According to general labour law of China employees have to obey certain rules and regulations.
Work Times & Shift Work - According to Chinese labor law the maximum working period is 40 hours which is consist of 8 hours per day, 5 days per week and 2 rest days (Saturday and Sunday) (Sy,2008). In addition the regular days off (Sat day and Sunday), Chinese citizens also enjoy the holidays such as Spring Festival, Dragon Boat Day, Mid-Autumn Day, and New Year's Day. For an instance according to the Government policies Chinese people can take three days off, for the Spring Festival including the December 30th, January 1st, 2nd of the Chinese lunar calendar. In China night work is legally permitted only under some strict preconditions, if needed to work longer hours they they have provide transport for the employees and they allow taking leave on the following day. Also female workers who pregnant for seven months or more shall not be arranged to extend their working hours to work night shifts.
Social Security Payments- Employers are obligated to pay below social security payments to employees and the rates will be varied depending on the location of employment (Sy, 2008). Employee and employer jointly contribute for Basic old age Insurance, Unemployment Insurance, Medical Insurance. And Employer contributes only for Maternity Insurance and work related injury insurance.
Other allowances- Company will be providing housing and transportation facilities to the HCNs at the middle level management. Apart from this, the HCNs will also be given in house accommodation and transportation allowances for those who live far from home.
Other major factor that Sri Lankan managers need to avoid is discrimination. Because discrimination is considered as a simple matter or in most cases neglected in Sri Lanka. But like most other Asian countries, in China also discrimination is considered as a major issue. And any discrimination based on sex, race, nationality, handicap, religion, and political opinion is prohibited in China. Harassments are also considered as a factor which demolishes good working conditions in an organization heavily in China. Therefore managers strictly should mindful about those issues when working both with host country and home country nationals.
- Sy. M. G. (2008). Guide to Employment in China 2008. Law Articles. Retrieved March 24, 2009 from http://www.hg.org