The labor market entering the final months of the year always brings numerous personnel fluctuations, ranging from increased manufacturing orders to employees’ career transitions. For the HR team, this is also a period when state regulatory agencies frequently inspect corporate compliance with labor laws.
To avoid regrettable legal risks, the human resources department needs to proactively review the following key points:
1. Standardize the Electronic Labor Contract Execution Process
The popularity of regulations on executing labor contracts via electronic means provides tremendous flexibility for businesses, especially for remote or hybrid work models. However, HR must check the data storage system: Is the digital signature of the legal representative valid? Are the data message files securely backed up and ready to be presented when requested by social insurance authorities or labor inspectors? An electronic contract with technical legal flaws will lead to unfavorable disputes when incidents arise.
2. Pay Attention to Overtime Calculation and Management
The year-end period typically records a surge in workload. HR needs to closely coordinate with the C&B and production management departments to strictly control the statutory overtime caps (monthly and annually) for each employee in compliance with current regulations. At the main time, allowances and night-shift overtime pay rates must be clearly itemized on the payroll to ensure transparent benefits and prevent internal complaints.
3. Review Labor Internal Regulations and Internal Spending Policies
Before entering the annual tax finalization and auditing season, does the currently applied Internal Labor Regulation (ILR) need updates regarding new technology, information security, or disciplinary procedures to fit practical realities? Ensuring that the ILR is duly registered serves as a “shield” protecting the company in all labor dispute scenarios.
Advice from Smart SP: Labor law never stands still. By proactively “health-checking” the human resources documentation system on a quarterly basis, businesses will always stay ahead of the game, saving massive costs in post-issue remediation later on.
