There are many differences between legal issues in china and Australia. For instance in China, the legal system is supplemented with local regulations. The local regulations are major challenges to international companies expanding their businesses in China.
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These local laws and regulations differ from provinces as well as in the major cities in China such as Beijing and Shanghai. Different economic zones have different laws and regulations relating to labor (Lan, 1995).
The interpretation of legislation and local practices also differs in various regions across China. There are various local regulations and practices that influence application of law in China as compared to Australia.
The local regulations in China are supposed to be consistent with the national legislation but sometimes there are conflicts.
In Australia, there are few local laws which are consistent with the Australian national law. International companies should adhere to the local rules and regulation in China.
Employment contract law in China also differs from that in Australia. In china, the employment contract law is very generous to workers and it provides a lot of protection as compared to the employment law in Australia.
For instance in china, if an individual is employed temporarily for more than one short term contracts then he is deemed to be permanently employed (Villa, 2009).
This is different from Australia where a person can be employed temporary for more than one short term contract without being viewed as a permanent employee. According to the contract law in China, an employee must have a formal contract.
It is mandatory for employment contract to be written. This contract must contain important details such as compensation, working hours as well as job description.
International human resource managers must be aware of these protective provisions in contract law. This is a major challenge which is faced by most international companies doing business in China.
Another challenge faced by foreign companies is that they are not allowed to directly employ Chinese citizens in China. However, they may involve Chinese citizens in performing some services.
In China employment contract must contain a basic fixed salary which should not be changed by the employer. Corruption is a serious problem in China just like in other developing countries across the globe.
In this country corruption involves bribe, fraud, embezzlement as well as extortion (He, 2003). Some people give bribes to the hiring officials in order to secure employment.
Some people are also employed or promoted to a higher position depending on whether they know leaders in the high ranks. These leaders may be their relatives, friends or even classmates.
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In Australia, corruption is very minimal as compared to China and the country was ranked as the least corrupt country among the group of 20 developed nations (Brinsden, 2011). In China, human rights are normally considered when recruiting employees.
Minors under the age of 16 are not supposed to be recruited. Employment discrimination is also discouraged, and there are equal employment rights for both male and female. The employees have the right to be employed and the right to labor safety and hygiene.
The human resource professional are supposed to be conversant with legal issues relating to employment in China. They should know the requirement of employment contracts in order to avoid the challenges they face in China.
They should engage Chinese citizens in services to avoid the liability of being an employer. Human resource manager should advice the multinational companies to have a registered presence in China (Lam, 2004). They should comply with legal restrictions, which are found in this country.
They should also comply with employment contracts requirement. They should also engage representative office in order to enter into business contracts. The human resource manager should also understand the human rights that are provided to the employees in China.
Brinsden, C., 2011. Australia ranked the least corrupt country in the G20. International Business Journal , 11-12.
He, Z., 2003. The study of the problem of corruption and anti-corruption in China. Comparative economic and social systems , 19-23.
Lam, T., 2004. Human resources issues in the development of tourism in China. Internationa journal of contemporary hospitality management , 1-4.
Lan, L., 1995. Human resource management in Chinese hotels. International journal of contemporary hospitality management , 1-5.
Villa, M., 2009. Employment laws in China. International human resource journal , 17-21.