Newly Enacted "Foreign Labor Cooperation Management Ordinance", etc.
From July 10th to 14th, 2012, JITCO traveled to China to participate in the 20th anniversary commemoration ceremony for the Sino-Japan Trainee Cooperation Organization of China (hereafter, “SJTCOC”) and to hold its regular consultation with the SJTCOC.
JITCO participated in the SJTCOC 20th anniversary event held on July 11, 2012 in Jinan city, Shandong province. The Jinan hotel where the anniversary event took place was simultaneously hosting a domestic Chinese event for people involved in foreign labor cooperation. More than 600 people participated in that event, including officials from the Ministry of Commerce and other government agencies, and SJTCOC-accredited sending organizations.
At the anniversary event, the SJTCOC gave recognition to 18 distinguished accepting organizations and 18 distinguished sending organizations. Of the 18 Japanese supervising organizations invited by the SJTCOC, 15 organizations participated.
- Recognition of distinguished accepting organizations
Please review this repeat notification regarding the captioned matter which we have already reported about on our website in Whats New September 19, 2012 and the October edition of Kakehashi, our information magazine.
At the regular consultation with the Sino-Japan Trainee Cooperation Organization of China (hereafter, “SJTCOC”) conducted on July 12 in Jinan city, Shandong province, JITCO delegates received an explanation of matters relating to the newly enacted Foreign Labor Cooperation Management Ordinance.
The Foreign Labor Cooperation Management Ordinance (State Council of the People’s Republic of China Order 620, hereafter “the Ordinance”) was adopted on May 16, 2012 at the State Council’s 203rd meeting, announced to the public on June 4, and came into effect on August 1.
The Ordinance focuses on labor cooperation programs with not only Japan but all countries worldwide. Its purpose is to strengthen the regulations applying to foreign labor cooperation companies, with the aim of protecting the legitimate interests of workers who are dispatched overseas and also resolving problems incurred by companies illegally dispatching workers.
Part of the Ordinance’s content includes regulations to increase the capital of foreign labor cooperation companies from the current 5 million Chinese yuan (3 million yuan in the Midwest region) to 6 million yuan, as well as increasing the reserve fund that foreign labor cooperation companies must pay to the country in case compensation to the worker becomes necessary (Foreign Labor Cooperation Hazard Measure Reserve Fund) from 1 million yuan to 3 million yuan. Depending on the decisions of the respective sending organizations, it is anticipated that some businesses dispatching technical intern trainees will withdraw from the program, but the SJTCOC responded that “For technical intern trainees who have already been dispatched, the SJTCOC believes that the relevant sending organization must take responsibility for them until the end.”
In line with the enactment of this new ordinance, even those sending organizations currently possessing “foreign labor cooperation operating credentials” from the Ministry of Commerce must conduct a review to ensure compliance with the provisions of the ordinance and review registration procedures for operating credentials. The transitional period is scheduled to last until June 30, 2013, and until that time, sending operations that are already in operation may continue, however, any organizations which do not complete the registration procedures before the end of the transitional period, must cease foreign labor cooperation work.
In addition, while the timeframe for such is yet to be determined, detailed regulations on the implementation of the ordinance are expected to be prepared as well.
At present, the SJTCOC has not provided its interpretation or an explanation of the details of the Ordinance’s text. However, for your reference, the URL for the SJTCOC’s Japan office (Taito-ku, Tokyo / Tel: 03-5827-2268) is provided below, where the entire text of the ordinance (in Chinese) is posted.
For sending organizations, an explanation regarding the ordinance was carried out on July 11 in Jinan. JITCO has asked the SJTCOC to hold an orientation in Japan, where we can directly explain the ordinance to supervising organizations and other parties.
- Consultation with the SJTCOC
Please direct inquiries regarding this matter to:First International Affairs Division, International Affairs Department