China : Rule puts control on labour abroad

A new administrative rule governing organizations in overseas labour exports, which lifts thresholds higher, has been published by The Ministry of Commerce and the State Administration of Industry and Commerce. To be effective within 30 days after publication, it calls for more stringent conditions for companies dealing in the business of providing labourers abroad. Non compliance would lead to monetary and legal implications for the companies concerned. The rule said companies in such businesses should have a minimum registered capital of 5 million yuan (US$604,000). Its ratio of debt/assets should not be larger than 50 per cent and the company should have fixed office space of more than 300 square metres. The rule also stipulates that the company should obtain ISO9000 certification, authentication for management; and have at least five professionals in the field including those responsible for training and legal affairs. The rule requires more specific stipulations about quality of management compared to the previous rule, which focused more on registered capital and trade volume. There are now about 1,400 Chinese firms employing over 500,000 persons licensed to contract and export labour abroad, working in construction, transport, domestic help, medical services, mining and textiles. East Asia, Southeast Asia, North Africa, North America, the Gulf and Europe are among the major destinations where Chinese work, Li said. The ministry would regularly publish a list of companies found to breech the new rule.