China Employment Landscape Outlook: Contingent Labor, Personal Information Protection Compliance

2021 saw a significant number of legislative changes affecting employers and their operations in China. Into the Year of Tiger and beyond, the government will balance a workforce seeking safety and health as well as flexibility. Employers can expect further promotion of employee data protection compliance, reinforcement of established workplace policies such as anti-harassment and extended maternity leave, and regulation of gig workers.  

Regulation of Gig and Platform Workers  

As the gig economy continues to expand amidst increasing discontent from platform workers, employers can expect more regulation of this area going forward, in addition to the Guidance on Safeguarding the Rights and Interests of Workers in New Employment Modes in 2022. The guidance aims to protect the labor rights and interests of workers under new forms of employment including employment relations, eliminating employment related discrimination, maintaining the minimum remuneration standards, arranging reasonable workload and rest, providing work safety measures, contributing to social insurance, and preventing occupational injury or disease. The Decision on Amending Trade Union Law, effective this year, also emphasizes that trade unions should adapt to changes in employment models and other developments and uphold workers' rights to join and organize trade unions. Understanding your employee and contractor structure and ensuring compliance will be increasingly important in the country. 

Further Promotion of Personal Information Protection Compliance 

The PRC Personal Information Protection Law (PIPL) imposes significant compliance requirements on personal information processors, especially those who operate transnationally.  Additionally, we might see an increase in labor disputes related to the protection of personal information as employees now have easier access to company documents containing their personal information. This is likely to be the focus of employers’ compliance work over the coming year and into the future. 

Other Workplace Policies  

With a new Civil Code stipulating the obligation of employers to prevent persons in power from abusing their authority to commit sexual harassment becoming effective last year, we expect to continue to see more developments on this end. It is essential for employers to establish a reasonable and adequate compliance system against sexual harassment in the workplace. Additionally, the extended family leave policies will be encouraged and enforced as the country’s birth rate is dropping to a record low.  

Outlook: As China is on its way to recover from the pandemic, new generations of employees are gradually taking over its labor market who are seeking more protections as well as flexibilities at work. To help you prepare for the year, please join us at our upcoming event: Asia-Pacific: 2022 Employment and Labor Policy Outlook.