China: The Ministry of Human Resources and Social Security issued the Trial Guidelines on the Conclusion of Employment Contracts and Written Agreements for Employees in New Employment Form

For the Guidelines, Employees in New Employment Form refer to employees who accept online distribution, travel, transportation, housekeeping services and other work tasks published by internet platforms based on user demands, provide platform-based online booking services in accordance with the requirements of such platforms. However, individuals rely on the Internet Platform to carry out business activities independently shall not apply to the Guidelines.

By taking into account various factors such as the extent of autonomy of the employees over their working hours and workload, the extent of controlling by management, whether the employees need to comply with regulations and labour discipline, continuity of work, etc., the enterprises shall sign employment contracts with Employees in New Employment Form who meet the circumstances of establishing employment relations, and sign written agreements with Employees in New Employment Form who do not completely meet the circumstances of establishing employment relations.

In terms of legal responsibility, the Guidelines clarify that the Internet platform and enterprises could sign agreements to clarify their respective responsibilities. Moreover, HR service agencies could sign tripartite agreements with the Internet platform and Employees in New Employment, but the Internet platform still needs to bear the main responsibility of employment.

Key Action Points

In general, the implementation of Guidelines is conducive to strengthening the management and supervision of employment relations under new employment form, promoting the protection of employees’ rights and interests, and helping to promote the legalization and standardization of new employment forms.