Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.
Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.
Download full Q4 2020 Global Guide Quarterly
State Administration of Taxation Responds to Questions Related to Flexible Employment
New Regulation or Official Guidance
Author: Nancy Zhang, Special Counsel – Littler United States
The State Administration of Taxation makes it clear: the income that freelancers obtain from apps/platforms includes two major categories: (1) service income and (2) business income. “Service income” refers to freelancers' income relating to design, consulting, lectures, recording, video, performance, advertising and other services using apps/platforms. The income is a taxable item of "remuneration for labor services" and should be withheld by the entities or individuals who pay for such services. Concerning “business income,” if freelancers set up individual businesses, or engage in production or business activities on the platform without any registered businesses, the income earned should be taxable as "business income."
Guidance and Services for Sharing Employees
New Regulation or Official Guidance
Author: Nancy Zhang, Special Counsel – Littler United States
The Ministry of Human Resources and Social Security recently promulgated a Notice on the Guidance and Services for Sharing Employees. Among other things, the Notice provides that enterprises can form an agreement on the number of shared employees, working time, working location, working content, rest time, labor protection conditions, the standard, payment time and manner of the salary, hospitality arrangement, how to return the employees, and work-related injury liabilities.
Shanghai Municipality Issues Opinions on Exercising Discretion and Whistleblower Protection
New Regulation or Official Guidance
Author: Nancy Zhang, Special Counsel – Littler United States
The Shanghai Municipality recently issued Implementation Opinions on Strengthening and Standardizing Interim and Ex-post Supervision. Among other things, the Opinions address the enterprises' market practices, suggesting authorities prudently exercise discretion when imposing administrative punishment and expand the coverage of exemptions for minor violations. In terms of employment related matters, the Opinions promote establishing systems for whistleblowers to lodge internal complaints and to protect whistleblowers.
Guidelines on Further Regulating the Management of Labor Dispatch
New Regulation or Official Guidance
Author: Nancy Zhang, Special Counsel – Littler United States
The Guidelines, issued in November 2020, establish comprehensive regulations on controlling and managing labor dispatch. It requires strict access to obtain labor dispatch qualifications, reinforces the disqualification process, promotes the “Internet + Supervision” system, and establishes data sharing and management. It is expected that the labor dispatching regulations in Guangdong Province will be more stringent and standardized in the future.
