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February 18, 2005

China Establishes Workers Compensation Program

China is in the works to establish a common workers compensation standard, which will allocate up to twenty years salary in the event of death of injury from work related accidents that are determined to be the fault of the employer.  The initiative is designed to make it really expensive for employers, especially mining and construction industries employers, who inherently have very dangerous working conditions for their workers.

The plan would encourage employers to take out accident insurance on their staff. The new regulations designed to create greater workplace safety were introduced about one year ago.  Many industries in China depend on migrant workers that are very low-paid.  Many of these industry employers till refuse to buy employee accident coverage.

Just last week, there was a fatal gas explosion that killed more than 200 coal miners in the Liaong region of China named Fuxin. The employer involved with the gas accident was alleged to have forced their coal miners to sign a contract specifying a maximum of $18,860 (in Hong Kong dollars) in the event of a fatal explosion at work.  Chinese central government wants to impose provincial legislative bodies to impose the new workers compensation standard and ensure the enforcement of the regulation as soon as possible. 

Posted by Nicole Robbins at 02:31 PM in Contracts | Permalink

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Tracked on Feb 20, 2005 10:53:21 PM