Labor Law Enters the “Post-No. 481 Era”
On 24 November 2017, the Ministry of Human Resources and Social Security of the People’s Republic of China issued the fifth list of documents to be annulled. The Measures for Severance Payment due to Violation or Termination of Employment Contracts (“No. 481”) is in this list. This marks the official departure of the nearly 23 year old No.481 from the historical stage. However, “sub-calculation of severance payment” will not be changed fundamentally. In the “post-No.481 era”, we do not expect fundamental changes to sub-calculation rules. Local rules regarding sub-calculation that have been established in various regions will remain unchanged unless modified officially by competent authorities. No. 481’s special rules for severance payment no longer apply to years of service after 2008. Although No. 481 has been annulled, and the Employment Contract Law is silent about medical treatment allowances, this does not imply that the medical treatment allowances system is abolished.