3.5 Examination of the Collective Contract

Page Completion Estimate = 5 Minutes

Within seven days after signing, the signatory company will need to submit three copies of the concluded collective contract to the competent in-charge labour authorities at or above county-level for examination. Collective contracts involving regional companies and centrally owned companies which are located in a certain province or municipality are examined by the provincial (regional or municipal) labour administrative department. The State Council labour administrative department, or provincial department designated by the State Council, examines the collective contracts for national group companies, large industrial companies and companies straddling multiple provinces.

The examination of the concluded collective contract by the in-charge labour authorities covers the following three areas:

  • Confirmation whether the qualifications of the contract representatives from both sides meet requirements of relevant law and regulations.
  • Confirmation whether the consultation has been done according to the principles and procedures as stipulated in relevant law and regulations.
  • Confirmation whether the specific labour standards in the collective contract meet minimum requirements as stipulated in relevant law and regulations.

Examination will take place within 15 days upon receiving the collective contract. If the labour authority does not raise any objections, it will inform both parties involved, and the contract shall be considered as effective. If the authorities have suggestions, it will inform both signatories, who shall revise or remove the sections of the contract which have been disapproved by the examiner. Within 15 days of having received the examiner’s suggestions, the revised or rewritten version has to be submitted once more. After approval has been obtained both parties shall promptly and in proper form publicize their collective contract to all members and employees they represent.

A collective contract that has been concluded in accordance with relevant law and regulations is binding for both employer and employees. An industry-based or region-based collective contract is binding for all employers and employees in the respective industry or geographical area.