Updated May the 25th， 2014
The Interpretation of the New Regulations for the Personnel Management Institutions
Source: Author: xinhuanet.com reporter Zhao Chao
The Implementation of the Open Recruitment Standard Employment Contract, Participation in the Social Insurance Scheme, Salary Increase Mechanism
Xinhuanet.com Beijing 15 May Xinhua 15 is authorized to make public the "Regulations of Personnel Management Institution". The regulations of personnel management will come into force on July 1st and are the first systematic administrative regulations change for the human resources institutions. The Ordinance establishes the basic outlines in regards to the: open recruitment, employment, social insurance, salary and other aspects of the present reform.
The Implementation of the Open Recruitment
The institutions should be open for recruitment when they add new staff.
In the recent years, excessive internal recruitment caused widespread concern, being condemned by officials, candidates and human resources experts. In March this year, the Central Organization Department and the Ministry of Human Resources and Social Security Association were informed of nepotism cases in Jiangyong County of Hunan Province, attracting administrative sanctions for the culprits.
The regulations specifically stipulate that public institutions must to recruit new personnel. In 2005 November, the Ministry of Personnel issued the "Interim Provisions" towards the public institutions to make them recruit staff. Institutional recruitment should be geared to the needs of the society, meeting clear and transparent conditions that apply for all kinds of personnel. The Human Resources and Social Security Ministry announced already at the end of 2012, that by the end of 2013, open recruitment for new staff in the public institutions nationwide has basically achieved full coverage.
"The regulations issued for the public institutions to recruit, starting with the department administrative is conducive to the work on the existing basis, with the aim of strengthening and standardizing, so as to effectively prevent the illegal recruitment business unit," said the responsible person in the Human Resources and Social Security Department of the Personnel Administration and Institutions.
Chi Fulin from the Chinese (Hainan) Reform and Development Research Institute thinks an important reason for the open recruitment vulnerabilities lies in the lack of supervision, resulting in the destruction of open, equal individual opportunities for all candidates.
In this regard, the Ministry of Human Resources and Social Security vice minister Wang Xiaochu pointed out, people within departments should play the role of supervisor, the referee, strengthening the supervision of the open recruitment, discovering and correcting problems in a timely manner, so that the illegal operations, irregularities and other such issues can be dealt with severely.
The Standard Employment Contract
All institutions and staff must work based on an employment contract. The duration of the contract should not be generally less than 3 years.
Since 2002 in China, the personnel recruitment system within public institutions is under reform. The employing relationship changes from an administrative appointment relationship towards equality and consultation. The original Ministry of Personnel issued "On the Opinions of Implementation of the Personnel System in the Public Institutions" putting forward the fact that contracts are divided into short, medium and long term and the employee must work to complete the term of the contract. Therefore, the employment period is now unified, despite internal institution regulations, and generally not shorter than 3 years.
"Future" Human Resources expert Feng Lijuan pointed out, the institution contract is different from the labor contract. The labor contract is short-term or has no fixed term. She said: "the institution contract period in longer than 3 years, taking into account the main business unit personnel, professional and technical personnel, etc. A long-term contract is meant to maintain the continuity of scientific research, public service career and establish relatively stable personnel basis."
Regulations also made new provisions on long-term contracts. According to the past laws, a person could stay in the department after retirement, for more than 25 years. The new regulations change this rule, reducing the post-retirement employment from 25 to 10 years from the statutory retirement age.
Participation to the Social Insurance Scheme
The institutions and their staff have to participate in the social insurance scheme according to the law. All workers enjoy social insurance treatment lawfully.
The authorities agreed to promote the reform of the endowment insurance system of the governmental and public institutions. The insurance system means the basic medical insurance system and basic old-age insurance system, the integration of urban and rural residents. The regulations propose institutional staff to participate in the social insurance, the priorities being the medical and pension insurance.
At present, in the reform of the endowment insurance system of public institutions the progress is not smooth, the endowment insurance of enterprises and institutions creates a pension gap, so widely criticized. Ministry of Human Resources and Social Security Vice-Minister Hu Xiaoyi said the next step in the direction of planning new changes is to establish a fair deal following the principle of the market.
Since the beginning of this year, a series of measures indicate effective promoting of the reform. At the beginning of the year, the State Council issued its opinions. The deployment of a unified basic old-age insurance system for urban and rural residents, nationwide and putting forward the comprehensively built pension insurance system, whose attributes are fairness, unified standards for urban and rural residents in 2020, is pointing clearly towards a timetable.
The Wage Growth Mechanism
Provinces need to establish institutions based on the normal growth mechanism of staff wages.
The income distribution institution reform in China began in 2006, comprising the institutional staff wages including basic salary, performance pay and allowances and subsidies. In recent years, China carried out a performance pay reform in its public institutions. This reform was first carried out in schools of compulsory education, public health and basic medical and health institutions.
"The current institutions formulated post performance wage system reform is a more difficult step in the reform, especially in diverse institutions, in the industry and between the different sources of funds, to find a relatively fair income distribution." The Chinese Personnel Science Research Institute Researcher, He Fengqiu said.
He Fengqiu thinks the wage reform within the institutions will be the next step in aligning the institutions to the same standards. The mechanism of wage growth regulation, He Fengqiu believes, should be based on the economic development of each province, on the financial status of the institution, the business personnel wages and the local prices and other factors. The public institution staff wages must be checked and adjusted regularly, and for the transformation of an enterprise, it should implement the distribution systems of enterprises for undertaking administrative functions.
26th of May 2014