Officials: Firms Should Report Mass Lay-offs in Advance

China has demanded companies with plans for mass lay-off  to inform affected unions 30-days in advance and submit a written report to the government.

Concerned rising unemployment, the Chinese State Council issued a notice on Tuesday telling companies to alertauthorities of lay-offs involving over 20 workers or 10% of staff.

The notice – posted prominently on the central government's news portal (www.gov.cn) – stated that such companies should also gather feedback from unions or staff in advance.

The companies should file reports to local agencies under the Ministry of Human Resources and Social Security (MHRSS).

The authorities would also enhance supervision over delayed salary pay-outs and social security insurance contributions to prevent employers from folding up and running away.

The notice, themed "Ways to Ensure Employment", also listed 25 other measures to promote job creation and maintain social stability.

Other measures included asking state-owned firm to refrain from cutting staff strength; giving tax incentives to companies that take in holders of “re-employment program pass”; stimulating local economies and create more jobs in rural area.

China's job market has turned tough as the global economic crisis deepened. Manufacturing hubs in the southern coastal cities were among the worst hit as exports plunged drastically, forcing factories to close or cut production lines.

The latest official data showed that Chinese exports dropped 17.5% in January, the biggest dive in over a decade. As of late last year, an estimated 30 million migrant workers had left the cities for homes in the countryside.

Though the government maintained that unemployment in the country last year stood at 4.2% and intended to cap off at 4.6% this year, a survey by scholars from the Chinese Academy of Social Sciences early this year put the rate at 9.4%.

In a January 20 news conference, MHRSS spokesman Yi Chengji admitted that the differences arose from methods of calculation and sample collection. Yi said the government data was based on registered unemployed persons.