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Contract - Check out (esp. breach section) opinions please

 
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druchill



Joined: 03 Mar 2015
Posts: 5

PostPosted: Wed Mar 11, 2015 10:18 pm    Post subject: Contract - Check out (esp. breach section) opinions please Reply with quote

—1—
CONTRACT OF EMPLOYMENT
International Expert Office

**University
—2—

CONTRACT OF EMPLOYMENT
Employer (Party A)
Employed Foreign Experts or Professionals (Party B)

—3—

I. Both parties, in line with the principles of legality, fairness, equality, mutual agreement, honesty, and trustworthiness, on a voluntary basis, and in a spirit of friendly cooperation, agree to sign this contract and pledge to fulfill all the obligations stipulated hereinafter.

II. The term of this contract shall be from 1st April 2015 to 15th January 2016, with the first 60 days set as probation period.

III. Tasks assigned to Party B (see the appendix).

IV. Party B’s monthly salary shall be RMB 10,000 (before tax). Please see the appendix for terms and conditions on other remunerations and benefits concerned.

V. Party A’s Obligations:

1. Party A shall inform Party B of relevant laws and regulations of the People’s Republic of China as well as any institutions and administrative stipulations concerned with Party B’s employment as herein provided.
2. Party A shall conduct regular supervision, inspection and review of Party B’s working performance.
3. Party A shall provide Party B with necessary working and living conditions.
4. Party A shall deploy fellow staff for Party B for coordination affairs.
5. Party A shall pay Party B’s salary as scheduled.

—4—

VI. Party B’s Obligations:

1. Party B shall observe relevant laws and regulations of the People’s Republic of China and shall not interfere in China’s internal affairs.
2. Party B shall observe any institutions and administrative stipulations concerned with its employment, and shall be subject to Party A’s arrangements, supervision, inspection and review of his/her working performance. Without Party A’s consent, Party B shall not conduct any part-time job assigned by any other party or study for a degree.
3. Party B shall fulfill the tasks assigned to him/her with high standards within the prescribed timeframe.
4. Party B shall respect China’s religious policies, and shall not conduct any religious activities incompatible with his/her status as a foreign expert.
5. Party B shall respect Chinese people’s ethics and customs.

VII. Revision, Cancellation and Termination of the Contract:

Both parties shall abide by the contract and shall refrain from revising, canceling, or terminating the contract without mutual consent.
1. Revision of the contract. This contract can be revised with mutual consent. Before both parties have reached an written agreement, the contract shall be strictly observed.
2. Cancellation of the contract. This contract can be canceled with mutual consent. Before both parties have reached an agreement, the contract shall be strictly observed.

—5—

(1) Under the following conditions, Party A shall have the right to inform Party B in writing of the cancellation of this contract:
a. Party B fails to fulfill this contract or the obligations and agreed conditions as herein stipulated, and fails to amend his/her actions after Party A has pointed it out;
b. On the basis of the physician’s diagnosis, Party B fails to resume normal work after a sick leave for a period of successive 30 days.
(2) Party B has the right to inform Party A in writing of the cancellation of this contract under the following conditions:
a. Party A fails to provide Party B with necessary working and living conditions as stipulated in this contract;
b. Party A fails to pay Party B as scheduled.
3. Termination of the contract.
(1) This contract shall be terminated once it expires.
(2) This contract may be terminated with the mutual consent of both parties, and it shall be strictly observed until both parties reach an agreement otherwise.

VIII. Breach Penalty

When either party fails to fulfill any part or all of the obligations as stipulated in this contract, that is, in the event of breach of the contract, the said party shall pay a breach penalty equivalent to 3 to10 times of Party B’s monthly salary in RMB. If both parties consider it necessary to determine an exact sum of the breach penalty, or to determine a breach penalty higher or lower than the above-mentioned amount, it shall be explicated in the appendix of this contract.

—6—

When Party B claims to cancel this contract due to force majeure, it shall produce certifying documents issued by competent authorities; after the contract is cancelled with Party A’s consent, Party B shall bear the traveling expenses thus incurred; and when Party B fails to provide any valid reason to cancel this contract, it shall bear the traveling expenses thus incurred and pay the breach penalty to Party A as stipulated in this contract.

When Party A claims to cancel this contract due to force majeure, and the contract is thus cancelled with Party B consent, it shall bear Party B’s traveling expenses thus incurred; and when Party A fails to provide any valid reason to cancel this contract, it shall bear the traveling expenses thus incurred to Party B and pay the breach penalty to Party B as stipulated in this contract.

IX. The appendix of this contract forms an indispensable part of this contract and shall have the same legal effect with the text of this contract.

X. This contract shall take effect upon being signed by both parties and shall be automatically terminated upon expiration. When either party requires signing a renewed contract, it shall forward its request to the other party 30 days prior to the expiration of this contract, and both parties shall sign the new contract through consultations and mutual consent.

Upon the expiration of this contract, Party B shall bear all the expenses incurred during his own stay in China.

—7—

XI. Settlement to Dispute

Any dispute in connection with this contract shall be first of all settled between both parties concerned through friendly consultation. In case no settlement can be reached through consultations or intermediation, both parties shall submit the said dispute for arbitration with local personnel authorities or the local labor arbitration system. In case either party refuses to accept the arbitration award, it may bring an action before the people’s court.

This contract is signed by both parties at _UNIVERSITY_ (location) on _12_March 2015 (date). This contract is in duplicate, each in both Chinese and _English_ versions, and both shall take effect upon being signed at the same time.

Party A: Party B:
(Signature) (Signature)
Appendix:



Appendix 1

Agreement on Party B’s Living Conditions and Payment

I. Duties
Party B shall be available to teach 20 hours per week. Additional teaching hours may be negotiated between Party A and Party B.

II. Salary

1. Calculation of payment:
Party B’s salary shall be paid on a monthly basis beginning from the day of Party B’s commencement of work in UNIVERSITY till the day of expiration of the contract. For a period less than one month, the payment shall be made by day, with the daily rate being one-thirtieth of the monthly salary.

2. Exception:
If, due to unforeseeable reasons or a force majeure event, Party B has to terminate the contract before it expires, payment shall be made by Party A to Party B till the day of Party B’s departure.

III. Travel Expenses

1. Party B who holds a one-year (one academic year) contract with UNIVERSITY will be provided by Party A one economy class return air ticket on Air China flights with the fewest stops between Party B’s place of permanent residence and Beijing. Party B who holds a half-year contract with UNIVERSITY will be provided by Party A a one-way economy class ticket on Air China flights with the fewest stops between Party B’s place of permanent residence and Beijing.

2. Party B who buys his/her own air ticket before coming to China should get the ticket reimbursed no later than two months before the expiration of the contract.

3. Party B who asks for reimbursement with the receipt of the air ticket (from an overseas destination to Beijing) shall be refunded the whole amount stated on the receipt. Party B who asks for reimbursement with the air ticket shall be refunded seventy-five percent of the amount stated on the air ticket. Payment can be made either in RMB or USD as per the request of Party B.

4. Party B who leaves China by other means of transportation and demands payment for his/her trip shall be paid by Party A in RMB or US dollar 70% of the fare of a one-way economy class ticket on Air China flights with the fewest stops.

5. When finishing the one-year (one academic year) contract with UNIVERSITY, if Party B
chooses not to reimburse one economy class return air ticket, UNIVERSITY will pay Party B with one-and-a-half-month salary as the vacation salary. Party B should choose either of them.

IV. During the period of contract, Party A shall provide Party B with:

1. Housing (including a kitchen, a bathroom, basic furniture, bedding, a television set, a refrigerator, and facilities for heating and cooling), which shall be provided from one week before the new term starts to two weeks after the expiration of the contract.

2. A monthly telephone allowance of RMB 100, which is not paid in cash. If the telephone bill of the month exceeds RMB100, Party B shall pay the excess amount.

3. Complimentary airport transfer from and to the Beijing Capital International Airport when Party B reports for work and leaves from work at the expiration of the contract. Party B shall cover other personal travel expenses during his/her appointment (including the extension period of the contract) in UNIVERSITY.

4. Free medical care (up to RMB 5,000 for a half-year contract and up to RMB10,000 for a one-year contract), excluding expenses incurred in hospital registration, doctor’s home visits, transport to and from hospital, denture, cleaning teeth, plastic surgery, massage, spectacles, psychological consulting, medical check-up not arranged by Party A, hospital meals, and nutritional supplements. The medical expenses incurred in non-designated hospitals and in hospitals located overseas, including Taiwan, Hong Kong, Macau, shall be paid by Party B.

5. Party A will provide Party B with personal accident insurance, which is valid in China.

V. Vacations and holidays

1. During the period of contract, Party B is entitled to have the holidays and vacations indicated on UNIVERSITY’s calendar.

2. When applicable, Party B is entitled to his/her national and/or religious holidays as follows: two days for Christmas, three days for Corban, one day for the Water-Sprinkling Festival.

3. Party B who requests to celebrate his/her home country’s National Day is entitled to a one-day holiday.

VI. Sick Leave

When applying for sick leave, Party B shall produce a doctor’s certificate. Payment for sick leave shall be made in full if the sick leave is less than 30 days. If the sick leave is longer than 30 days, and Party B is still holding a contract with UNIVERSITY, Party B shall receive
70% of his/her salary until the day on which he/she resumes regular work. If Party A terminates the contract with Party B, Party B will receive a departure allowance, the sum of which depends upon the specific circumstance.

VII. Leave of Absence

1. Party B who apply for leave of absence shall obtain Party A’s (the school or department that employs Party B and the Foreign Expert Affairs Office of UNIVERSITY) prior consent. A deduction in salary shall be made according to the number of days Party B is absent. During the period of the contract, Party B’s accumulated leave of absence shall not exceed 10 days and the consecutive leave of absence shall not exceed 3 days.

2. If Party B is absent from his/her post without Party A’s prior consent and has disrupted teaching by engaging in such activities as traveling outside of Beijing, acting in or making films, and holding concurrent posts, Party B’s payment will be reduced. If Party B’s absence has caused serious adverse consequences, Party A reserves the right to terminate Party B’s contract and seek further legal actions.

VIII. The Probation period of the Contract
The probation period of the employed party shall be 60 days. In the probation period, if the host institution finds out that the employed party is unfit for the assignment specified in the contract for reasons of health or professional ability, it has the right to terminate the contract.

IX. Departure Allowance
If Party B holds a one-year contract (an academic year) with UNIVERSITY, Party A shall pay half of the monthly salary to Party B as the departure allowance, under the condition that Party B has fulfilled all his/her obligations stipulated herein and has never left his/her post without obtaining prior consent from Party A.

Party A Party B
Date:12 March 2015 Date: 12 March 2015
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The Great North



Joined: 24 Feb 2015
Posts: 26
Location: Beijing

PostPosted: Wed Mar 11, 2015 11:49 pm    Post subject: Reply with quote

I suggest you read some of the other threads about contracts and you will find this long ass explanation of what to do when screwed over that came from another user Of course you would have to find the SAFEA office closest to you if you are not in Beijing...

"And you are dead wrong about accessing SAFEA - I have been to both of their offices in Haidain District (Beijing) and had no problem getting in to see people, getting information, and I met other foreigners making complaints.

The main offices are in building 5 and building 6 of the Friendship Hotel located at the intersection of 3rd Ring Road and Zhongguancun. Subway line 4 goes to within 100 meters of the entrance to the Hotel (Renmin Station - Exit A2). The only problem with this office is that out of about 100 people that work there, less than 5 speak English. So unless you bring a Chinese friend, be prepared to wait in que for about 30 minutes.

The other SAFEA office is where you apply for and pic up your FEC which is located on Suzhoujie less than 200 meters North of Renmin University's West Gate. Half of the staff their speaks English and the wait is less than 15 minutes. To enter both office locations you will need your passport.

As for the Ministry of Labor, you cannot get in without an appointment but when you write and request and appointment you will get one - at a time they pick whether it is convenient for you or not.

If your employer committed a criminal act you can either write to the Minister of Justice with a WRITTEN complaint or to the Procuriate's Office closet to the offender location with your written complaint. Verbal lip service will get you nowhere. When foreigners file complaints in China, the people at these office do their jobs because they know we can make a lot of noise and problems. None of them want to be found NOT doing their job - just in case publicity comes into play (ie Wei Bo) Here is the address for the Ministry of Justice:

Honorable Wu Aiying
Minister of Justice
Minisrty of Justice, the People's Republic of China
No.10 Nandajie, Chaoyangmen,
Chaoyang District, Beijing 100020, China

Here is a link to the current labor laws in English:
http://www.npc.gov.cn/englishnpc/Law/2007-12/12/content_1383754.htm

The quickest way to get your employer to settle disputes with you is to ask them for a copy of their license and tax identification number. Why? Because most all of them know a visit from the tax authorities will cost them a 50,000 yuan bribe or worse. Many private schools and learning centers are not even licensed to hire foreigners. (You can find out by visiting the SAIC office located 300 meters West of the the Canadian International School about 1,500 meters from Tunajiehu subway station line 10) A clerk there will ask you for the either the license number or the Chinese name of the registered school and you will know within 15 minutes if that school is a)properly licensed and b)authorized to hire foreigners.

Getting back to the tax authorities... The provincial tax authority and municipal tax authority will send an "auditor" to your school within 15 days of you making a report (Great service eh?). You probably will need to find a new job next year, but rest assured you will get every dime they owe you and a release letter free of charge when your contract ends.
The Beijing Tax Bureau is located on Subway line four walking distance from Chegongzhuang West subway station at:

8 Chegongzhuang Street,
Xicheng, Beijing, China
Tel: 86 10 8837 1701

They also have a snitch program and will pay rewards and accept written reports by fax and email.

Lastly, if you suspect or know that your Principal is corrupt, you can file a complaint with the party and send a copy to "Wang QiShan" and email copies to the parents. You will have a new principal within 45-60 days. Quicker if you send your complaint in English. Send it by COURIER so they know you can prove delivery.

He Guoqiang
National Bureau of Corruption Prevention of China
NO.2 Guang'An Men Nan Jie,
Xuanwu Disrict,
Beijing 100053

If your school is falsely claiming to be "affiliated" or "partners" with some famous university, they will get hammered with a huge fine and if they are already on probation for another ethical violation can lose their license and the people that care the most about this is the Ministry of Education which probably cares for the sake of their public image. Again if you do not write a detailed complaint, nothing will happen. Verbal jabber is worthless in China when making formal complaints - like most any other country as well.

Honorable Yuan Guiren
Minister of Education
No.37 Damucang Hutong,
Xidan, Beijing, P.R.C
100816

Lawyers in China are a last resort for people lacking the balls to confront their employers (polite but directly - in private, and if necessary - in public) If they see you know the law and the people that enforce it, paying/giving you what is owed or was promised becomes the easiest and less costly option for them.

First the rules of the game changed twice. First on May 1, 2008 when President Hu Jintao signed the new Labor Law & Arbitration Act, and then again when President Xi JinPing amended our employee rights by making them equal to Chinese rights in late 2012 or early 2013 (can't recall right now) with the "Equal Rights Law". But so much of the stuff on the internet and even some government web sites stills show the old 1995-1996 laws which have been superseded. So be sure to rely on the current laws at the Ministry of Labor and at National Library. Most all of the details about arbitration hearings is well-hidden from us and only found in Chinese on the Ministry of Labor And Social Security web site at

Website: www.mohrss.gov.cn and www.molss.gov.cn (now being updated)

But if you actually make an appointment and go there, they will give you copies of the guidelines and complaint forms. Without an appointment you will not get past the front gate. (Be sure to bring your passport) When you ask to make an appointment in your email, say you want to meet with Ms. Cui Huilie (top inspector) and you will get to meet with her assistant unless your case is on Wei Bo or the local news media.

Mimistry of Labor And Social Security
Adress:No.3, Heping Dongjie
Dongcheng District, Beijing
China, 100013
Tel:86-10-84201116
Email:[email protected]

However, 2 or 3 times a year Amcham and the CFTU both have seminars on labor dispute resolution and they pass out a lot of free stuff in English. Amcham charges an entrance fee (150 yuan) and the CFTU seminars are always free for members and a guest - 50 yuan for others. They both have guest speakers from law firms like this one here which also may answer an email from you.

http://www.dwt.com/advisories/Overview_of_Chinas_New_Labor_Dispute_Mediation_and_Arbitration_Law_01_29_2008/

BUT... Arbitration is only the way to go if you are going up against a big international company. If you are going against a Chinese company you have to remove the word "binding" from "binding arbitration" in your contract because it will prevent you from filing a law suit as well if you don't. The big downside on arbitration is how arbitrators are selected. Too complicated to explain here. The very best and most current article that explains the process is here:

http://www.clb.org.hk/en/content/chinas-labour-dispute-resolution-system

Note that only 35% of arbitration claimants actually win their disputes. In courts, the plaintiff's win more than 60% of the claims at present which is more than double of just three years ago. But in Chinese courts you are not allowed to represent yourself and even a new lawyer will charge you at least 5,000 yuan to file a claim.

The good news is that once you make formal complaints with the arbitration board and courts, and you give copies to your principal or tape a copy on the school wall or elevator, you WILL get what is rightfully owed to you. It is simply cheaper to pay you and they absolutely don't want parents of students to know they cheat their own teachers. In reality, they know from experience that maybe 95% of the teachers just take the screwing and disappear, mostly out of ignorance.

Another good trick I learned at the CFTU seminar was to take a well-documented and detailed complaint and at the top of the page type in bold 72pt. letters "NEWS RELEASE" and fax it to the the people below and your school's office (In Chinese is even better)

Xin Changxing, Director of the General Office

Yin Chengji, Deputy Director of the General Office (director-level)

Phone Number of News Release Office: 86-10-84207636 Fax: 84208636

A friend of ours who got screwed over by Webb for 15,000 yuan used this trick and got paid the very next day. But any complaint filed against an employer will mean you are history when the contract ends. Also important: There is a 60 day statute of limitation to file your claims. They must be RECEIVED within 60 days of the offense.

There is yet another way to get a third and fourth bite of the apple for free IF you live is top tier city like Beijing, Shanghai, Guangzhou, etc. which all have their own municipal labor bureaus and a conflict resolution system that takes foreigners seriously. And of course, every Provincial government has a Labor Dispute Board. The more letters and calls your swindling school has to deal with, the sooner you will get paid IMO.

The most important thing I learned at the seminar is that when you go through Arbitration, the burden of proof is on you. But when you go through the Courts, the burden of proof is on the employer.

I got a big pdf file in English from the CFTU for free about all the rules and procedures for making labor board claims at the top central government level, and it seems it is deliberately designed to be a convoluted process to dissuade people from making waves. Remember Chinese were raised to be "harmonious". But I personally believe that in China the "squeaky wheel" gets the grease and that "press release" tricks works like a charm. If by some odd chance that it does not, be prepared to fill out about 30 pages of forms. Disregard all of the above if you have no Z visa - filing any complaint will just expedite your own arrest and deportation."
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druchill



Joined: 03 Mar 2015
Posts: 5

PostPosted: Thu Mar 12, 2015 12:20 am    Post subject: Reply with quote

Wow that's a whole lot of info! Big thanks for that!!

I have sent back a proposed contract highlighting where it needs to be amended and added points for clarification in order not to have a too vague contract which will put me into a potentially bad situation. I also removed the breach penalty section by replacing it with a one month written notice of termination for each party, although another university included a similar section in regard to breaching contract.

In regard to the university's department, it is legit and fully part of the university as it is stated in the list of departments on the uni website and the uni representative also used the university's email i.e. [email protected]. Accommodation is on campus close to the school which is on campus as well, and I've asked to have this included in the contract as well.

I just sent it off so will have to wait and see, but I won't sign anything with a breach penalty.
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roadwalker



Joined: 24 Aug 2005
Posts: 1750
Location: Ch

PostPosted: Thu Mar 12, 2015 1:11 am    Post subject: Reply with quote

I must confess I didn't make it through the whole contract but it didn't seem too bad to me. The breach amount is typical, although I usually see it expressed in X thousand USD or equivalent. It makes me uncomfortable, although I don't actually know anyone who has ever had to pay a breach penalty. I think the point of them is to make FTs think twice before changing their minds and going to Spain or Thailand or wherever midterm, when they decide they don't like China. (Or whatever reason.) If they don't go for your fix, perhaps they can give examples, such as death in the family etc.

In my experience, if you come across as a reasonable person who bargains for what is important to you (higher salary, better accommodation etc.) but show flexibility in other things, and interest in teaching and in the students, the school won't be all that eager to make an enemy or collect a bad reputation. That is, they will work with you, too. They want to work with someone that they can work with. That's not a guarantee of course. But I think it generally holds true. Even better if you develop a reputation as a serious, energetic and organized teacher among the students.

On the other hand, there were some good things in the contract too, such as for dispute resolution: face to face then arbitration then the courts, in that order. That's reasonable. From what I have heard, that's a good deal for Beijing top universities. It would be average for Guandong but good also for the majority of provinces. That's assuming accommodation is decent.
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wangdaning



Joined: 22 Jan 2008
Posts: 3154

PostPosted: Fri Mar 13, 2015 2:08 am    Post subject: Reply with quote

It is typical for a breach penalty to be vague and stating an amount from the beginning to end of contract. That, in actuality, would usually not be the case, everyone I have known who left a contract paid 0. That is not to say people wishing to stay in China have not had to pay, but I doubt they could actually get 10 months pay from you.

The flip side, you collecting on a breach is also very unlikely. It would usually need to be a major breach, such as paying you well below what the contract states, and be well documented. You would then need legal representation and such.
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Son of Bud Powell



Joined: 04 Mar 2015
Posts: 179
Location: Since 2003

PostPosted: Tue Mar 17, 2015 3:47 am    Post subject: Reply with quote

"When either party fails to fulfill any part or all of the obligations as stipulated in this contract, that is, in the event of breach of the contract, the said party shall pay a breach penalty equivalent to 3 to10 times of Party B’s monthly salary in RMB..."

The FT might get stung for 3 to 10 times the monthly salary, but don't count on collecting one fen for a breach of contract from your school unless you can take it to court.
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Lack



Joined: 10 Aug 2011
Posts: 252

PostPosted: Tue Mar 17, 2015 4:26 am    Post subject: Reply with quote

Breach penalties in a contract look bad, but all they can do is refuse to pay you your salary. You'd be foolish to, for example, dip into any savings you might have to pay a breach penalty.

Contract looks all right to me for the most part. Good move to clarify things so it isn't so vague in parts.
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