Regulations of Shanghai Municipality on the Trade Union

(Adopted at the 16th Session of the Standing Committee of the 10th Shanghai Municipal People's Congress on February 8, 1995; amended for the first time in accordance with the Decision on the Amendments to Regulations of Shanghai Municipality on the Trade Union adopted at the 36th Session of the Standing Committee of the 10th Shanghai Municipal People's Congress on May 27, 1997; amended for the second time in accordance with the Decision on the Amendments to Regulations of Shanghai Municipality on the Trade Union adopted at the 43rd Session of the Standing Committee of the 11th Shanghai Municipal People's Congress; amended for the third time in accordance with the Decision on the Amendments to Certain Local Rules of Shanghai Municipality adopted at the 21st Session of the Standing Committee of the 13th Shanghai Municipal People’s Congress on September 17, 2010; amended for the fourth time in accordance with the Decision on the Amendments to Regulations of Shanghai Municipality on the Trade Union adopted at the 40th Session of the Standing Committee of the 15th Shanghai Municipal People’s Congress on May 24, 2022)

Chapter I  General Rules

Article 1 With a view to ensuring the position of the trade union in the state politics, economy and social life, defining the rights and duties of the trade union, and bringing the role of the trade union into play in the socialist modernization drive, these Regulations are formulated in accordance with the Constitution of the People's Republic of China, the Trade Union Law of the People's Republic of China and other relevant laws and rules and in the light of the actual circumstances of this Municipality.

Article 2 The enterprises, public institutions, state organs, social organizations (hereinafter referred to as work units) and trade unions in the administrative areas of this Municipality shall abide by these Regulations.

The enterprises, public institutions and social organizations of this Municipality stationed in other provinces and municipalities shall also abide by these Regulations in handling the relationship with their trade unions or with the trade unions at a higher level.

Article 3 The trade union is a mass organization of the working class voluntarily organized under the leadership of the Communist Party of China, a bridge and link through which the Party keeps in touch with the staff and workers, an important social pillar of the state power, and the representative and the protector of the legitimate rights and interests of the staff and workers.

Article 4 The trade union shall abide by the Constitution and the laws, uphold leadership by the Communist Party of China, adhere to Marxism-Leninism, Mao Zedong Thought, Deng Xiaoping Theory, the important ideas of the “Three Representatives”, Scientific Outlook on Development and Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, carry forward the great founding spirit of the Party, highlight the historic status of Shanghai as the birthplace of the Party and where the Party initiated its mission and the cradle of the Chinese working class, pass down the revolutionary tradition of the Chinese worker’s movement, keep and enhance its political character, pioneering nature and connection with the people, support the reform and opening up and the socialist modernization drive, independently and initiatively carry out its work according to the Constitution of the China Federation of Trade Unions. The trade union assumes the following responsibilities:

1. The basic duty of the trade union is to protect the legitimate rights and interests of the staff and workers and to provide them with dedicated service. The trade union shall, in the process of upholding the overall interests of the State, represent and uphold the legitimate rights and interests of the staff and workers.

2. It shall organize and educate the staff and workers to exercise the democratic rights according to law, participate in the administration of the state affairs, economic and cultural undertakings and social affairs, assist the Party and people’s governments to carry out their work, and uphold the socialist state power.

3. It shall carry forward the spirit of model workers, hard work and craftsmanship, give full play to the leading role of advanced exemplar, mobilize the staff and workers to actively promote socialist cultural and ethical progress, educate them to improve their ideology and morality, technical and professional capabilities, and scientific and cultural qualities, and establish a team of staff and workers who are well-educated and self-disciplined with high ideals and moral integrity.

4. It shall mobilize and organize the staff and workers to actively participate in the socialist economic construction, work hard in their posts to fulfill the production and work tasks, and contribute to high quality economic development by doing a good job in their posts. It shall give full play to the role of the working class as the main force in participating in social governance, maintaining the safety of city operation, addressing emergencies and other works.

Article 5 The trade union shall, through consultation on the basis of equality and the system of collective contracts, improve the coordination mechanism for labor relations, safeguard the labor rights and interests of the staff and workers, and build harmonious labor relations.

The trade union shall practice the key concept of whole-process people’s democracy, and shall, in accordance with laws and rules and by means of the conference of the representatives of the staff and workers (the conference of the staff and workers) or other forms, organize the staff and workers to participate in democratic election, democratic consultation, democratic decision-making, democratic management and democratic supervision of their own unit.

Article 6 The trade union shall establish a trade union working mechanism that builds extensive ties with the staff and workers and serves them, keep close contact with the staff and workers, listen to and reflect their opinions and demands, take care of their living, help them to solve difficulties, and serve them whole-heartedly.

Article 7 The trade unions shall promote the construction and reform of industrial workers team, improve their overall quality, give full play to the key role of industrial workers, uphold their legitimate rights and interests, guarantee their status as masters of the country, take the initiative to adapt to the needs of urban digital transformation, innovative industries development and strategic emerging industries development to create a great team of industrial workers with ideals, faith, professional skills and the spirit of innovation who are willing to take responsibility and ready for dedication.

Chapter II  The Trade Union Organization

Article 8 The legitimate rights and interests of the trade union shall be protected by law, and shall not be infringed upon by any units or individuals.

Article 9 All manual and mental workers in work units who have salaries and wages as the main source of their income have the rights to join and organize the trade union, and the freedom to quit the trade union according to law.

The trade union shall adapt to the evolutions in the forms of business organizations, the labor relations, employment patterns and other aspects, uphold the rights of workers to join and organize the trade union in accordance with the law.

Article 10 This Municipality establishes and perfects the system of trade union. The trade union at a higher level shall strengthen guidance and provide services to the trade unions at lower levels.

In this Municipality, districts, sub-districts and townships, a local federation of trade unions may be established. In relatively large development zones (industrial parks) with administrative committees, federations of trade unions may be established.

In one industry or among industries of similar nature, a municipal or district industrial trade union may be established. In districts and sub-districts, industry-based trade union confederations may be established.

In economic development zones, industrial parks (or sci-tech parks), buildings, business districts and other areas where enterprises and social organizations concentrate, regional trade union confederations may be established.

Work units with a trade union membership of over 25 persons shall establish the grass-roots trade union committee. In the case of units with a trade union membership of fewer than 25, they may separately establish a grass-roots trade union committee, or may establish a joint committee with members of 2 or more units, or may elect one organizer to organize the members to carry out activities.

The establishment of a trade union shall be reported to the higher-level trade union for approval.

Any organizations that are not organized and established according to the Constitution of the Chinese Trade Unions are not permitted to carry out activities in the name of the trade union, nor to replace the trade union to exercise its functions and powers.

Article 11 An enterprise, public institution or social organization shall, in the preparation of its establishment, support the staff and workers to prepare the establishment of the trade union.

An enterprise, public institution or social organization that has started business but not yet established the trade union shall, within 6 months upon the date of the start of its business, support and help the staff and workers to establish their trade union.

The trade union at a higher level shall help and guide the staff and workers in the enterprise or public institution that has not yet established the trade union to organize and establish the trade union, while the enterprise, public institution or social organization shall give support and provide necessary conditions.

Article 12 No unit or individual shall obstruct the staff and workers from organizing and establishing the trade union according to law, cancel or merge the trade union arbitrarily, and place the working body of the trade union in other departments.

The relevant department shall actively support, cooperate with the trade union of the higher level, and guide the staff and workers in those enterprises or public institutions that have not yet established the trade union to establish it, and shall, according to law, correct the unlawful acts that obstruct the organization and establishment of the trade union.

Article 13 With the termination of a work unit to which the grass-roots trade union belong, that trade union shall be canceled correspondingly, and the cancellation shall be reported to the trade union at a higher level for the record.

Article 14 The trade union committee and its fund auditing board shall be elected by the conference of the members or the conference of the representatives of the members. The members of the trade union committee shall be elected according to law.

The trade unions at all levels shall establish the committee of female staff members and female workers, and in the case of fewer than 10 female members, a women’s committee member shall be elected.

The municipal and district federation of trade unions, the municipal industrial trade union, and the sub-district, township trade unions may establish legal service organizations for their staff and workers, and shall provide legal aid and other legal services to their affiliated trade unions, staff and workers according to law.

Trade unions at all levels may establish a labor-law supervision organization under the trade union.

Article 15 The chairman and the deputy chairman (men) shall be elected by the conference of the members or the conference of the representatives of the members, or may also be elected by the trade union committee, and the system of the term of office shall be adopted.

Article 16 The municipal and district federations of trade unions and the municipal industrial trade unions have the status of the legal person of a mass organization.

The legally established sub-district, township trade unions, district industrial trade unions and grass-roots trade unions shall acquire the status of the legal person of a mass organization if they satisfy the following conditions and obtain the approval of the district/county federation of trade unions or the municipal industrial trade unions:

1. the trade union committee having been established;

2. having the necessary property or funds;

3. having its own name and office; and

4. having the capacity of bearing civil liabilities independently.

Where the trade union has legally possessed or acquired the status of the legal person of a mass organization, its chairman shall be the legal representative.

Chapter III  Rights and Obligations of the Trade Union

Article 17 The people’s governments at all levels may call meetings or adopt other proper means to inform the same-level trade unions of the planning of important work of the government and the administrative measures relevant to the trade union work, study and find a solution for the opinions and demands of the staff and workers reported by the trade union.

The departments of human resources and social security under the people’s governments at all levels shall, jointly with the trade unions at the same level and the representatives from enterprises, establish a three-party consultation mechanism of the labor relationship, and jointly study and settle important issues concerning the labor relationship.

The sub-district office and the department in charge of labor administration in the locality of economic development zones and industrial parks (and sci-tech parks) may, jointly with the trade unions under a sub-district or economic development zone or an industrial park (and sci-tech park), and the representatives from the enterprises, establish a three-party consultation mechanism of the labor relationship, and jointly study and settle important issues concerning the labor relationship in the locality.

Article 18 When the municipal and district people's governments formulate the plans for national economic and social development, and when the Municipal People's Government studies and drafts laws, rules and regulations on important issues concerning the immediate interests of the staff and workers, they shall solicit the opinions of the trade unions at the same level.

The municipal and district people's governments and relevant departments shall, when studying and formulating important policies and measures on the employment, salary and wages, price, production safety, welfare benefit, social insurance, etc., or establishing the social supervision organizations concerning the above-mentioned affairs, invite the same-level trade unions to participate and solicit their opinions.

The municipal and district federation of trade unions may investigate and analyze the problems of employment, labor payment, price, production safety, welfare benefits, social insurance, the actual status of the staff and workers, etc., and give its opinions and proposals to the people's governments.

Article 19 Enterprises, public institutions and social organizations shall, in accordance with the law, establish the system of the conference of the representatives of the staff and workers.

The conference of the representatives of the staff and workers (the conference of the staff and workers) is the basic form of exercising democratic management of the enterprises, public institutions and social organizations; and is the organization for the staff and workers to exercise the right of democratic management, and to examine, approve and decide important issues of decision-making and issues involving the immediate interests of the staff and workers in accordance with laws, rules and other relevant regulations of the State and this Municipality.

The trade union committee in the state-owned enterprises, the state-owned holding enterprises and the public institutions is the working organization of the conference of representatives of the staff and workers (conference of the staff and workers) responsible for the routine work of the conference of representatives of the staff and workers (the conference of the staff and workers), inspecting and urging the implementation of the decisions made by the conference of representatives of the staff and workers (the conference of the staff and workers). The trade union committees in collectively-owned enterprises shall support and organize the staff and workers to participate in the democratic management and democratic supervision. The trade union committees in other enterprises and public institutions shall, in accordance with laws and regulations, organize the staff and workers to participate in the democratic management in the forms suitable to their own units.

In case that an enterprise or public institution violates the system of the conference of representatives of the staff and workers or other systems of democratic management, the trade union has the right to demand a correction.

Article 20 When studying important issues concerning the operational management and development, the enterprise or public institution shall solicit the opinions of the trade union. When a meeting is called to discuss matters concerning the immediate interests of the staff and workers such as labor remuneration, welfare benefits, safety production and labor protection, working hours, holidays and vacations, the protection of female staff members and female workers and social insurance, etc., the representatives from the trade union shall attend the meeting. When a meeting is called to discuss matters concerning the protection of female staff members and female workers, female representatives shall attend the meeting.

Article 21 In case of establishing supervision board in the enterprise, the representative from the trade union shall be the candidate for a member on the board.

In case there is no representative from the trade union in the board of directors of the enterprise, the board of directors shall, when studying and deciding issues concerning the immediate interests of the staff and workers such as labor remuneration, welfare benefits, safety production and labor protection, working hours, holidays and vacations, the protection of female staff members and female workers, social insurance, etc., solicit the opinions of the trade union in advance, and invite the representatives from the trade union to attend the meeting as an observer.

When studying and deciding important issues of production and management, and formulating important rules and regulations, the board of directors shall solicit the opinions of the trade union, and obtain its cooperation.

The expenses incurred by a trade union representative as an observer at the board meeting shall be reimbursed in accordance with the funding channel of the members of the board of directors.

Article 22 On behalf of the staff and workers, the trade union shall, according to law, sign collective contracts concerning labor payment, welfare benefits, safety production and labor protection, working hours, holidays and vacations, the protection of female staff members and female workers, social insurance, skill upgrading, and career development with the enterprises, public institutions and social organizations that implements enterprise management through consultation on the basis of equality; and may separately sign an agreement on matters of salary and wages according to law. The draft of the collective contracts and the draft of the salary and wages agreement shall be submitted to the conference of representatives of the staff and workers or all the employees for discussion and approval, and be submitted to the department of human resources and social security and the higher-level trade union according to relevant provisions.

The industrial trade union or the federation of trade unions in the areas with a higher concentration of enterprises such as economic development zones, industrial parks (sci-tech parks), buildings and business districts may, on behalf of the staff and workers, sign collective contracts according to law with the representatives from the relevant enterprises through consultation on the basis of equality.

In case that the trade union proposes the signing or an alteration of the collective contract, the enterprise or public institution that implements enterprise management shall, according to relevant regulations, consult on the basis of equality with the trade union upon receiving the notice in writing. In case that the public institution or social organization that implements enterprise management refuses a consultation on the basis of equality without proper reasons, or in case of a failure in the consultation for settlement due to a dispute over the signing of the collective contract, the trade union may apply to the labor administrative department of the local government for a coordination for settlement according to law.

In case of a dispute over the performance of the collective contract and a failure in the consultation for settlement, the trade union may apply to the labor dispute arbitration committee for arbitration. If the case is refused by the arbitration organization, or if the arbitration award is not acceptable, the trade union may bring a lawsuit in a people’s court according to law.

Article 23 The enterprise, public institution or social organization shall, when drafting the text of a labor contract, solicit the opinions of its trade union.

The trade union shall guide the staff and workers in their signing the labor contract, and supervise the performance of the labor contract according to law.

In case of finding that the enterprise, public institution or social organization does not sign a labor contract with the staff and workers, the trade union has the right to demand a correction, or suggest that the relevant government department handle the case according to law.

Article 24 In case that the enterprise, public institution or social organization imposes a punishment on an employee, but the trade union believes there are insufficient legal basis, insufficient facts and reasons, improper punishment or exceeding its the legal authority for punishment, etc. the trade union has the right to state its own opinions.

When the work unit unilaterally discharges an employee’s contract, the enterprise shall at the same time inform the trade union of its reasons. If the trade union holds that the work unit violates laws and rules or breaches the relevant contract, and thus needs a re-consideration, the employer shall consider the trade union’s opinion, and inform the trade union of the result in writing with relevant materials.

Article 25 The enterprise shall, according to law, establish a labor-dispute mediation committee. The chairman of the mediation committee shall be the representative from the trade union, and its working body shall be established in the trade union.

The district federation of trade unions, the municipal industrial trade unions, and the sub-district, township trade unions may, jointly with the representatives from relevant parties, establish labor-dispute mediation organizations.

The parties to a labor dispute may apply to the mediation committee of their own unit for mediation, or may apply to the labor-dispute mediation organization mentioned in the preceding clause for mediation.

The labor-dispute mediation committee established by the government shall have member(s) from the representatives of the trade union at the same level.

Article 26 If the enterprise, public institution or social organization violates labor laws and rules in the following cases that infringe upon the labor rights and interests of the staff and workers, the trade union shall, on behalf of the staff and workers, negotiate with the enterprise, public institution or social organization and demand the enterprise, public institution or social organization to take measure for a correction. The enterprise, public institution or social organization shall study and deal with the case, and make a reply to the trade union. In case that the enterprise, public institution or social organization refuses to make a correction, the trade union may apply to the local people's government for a settlement according to law:

1. deducting, or delaying without reason, the payment of the employees’ salary or wages;

2. failing to provide safety and sanitation conditions of labor, or the safety and sanitation facilities and conditions of labor do not meet the requirements of the State;

3. prolonging the working hours at will, or failing to pay for the extended working hours according to provisions;

4. infringing upon the special rights and interests of female employees and employees under the legal age; and

5. other cases that seriously infringe upon the labor rights and interests of the employees.

Article 27 In the case of a newly-built or extended enterprise or a technological renovation project, the trade union shall, in accordance with the provisions of the State, exercise supervision to ensure that the designing, construction, going into production and use of the labor conditions and safety and sanitation facilities is carried out simultaneously with the principal part of the construction. The enterprise or the competent department shall seriously deal with the opinions raised by the trade union, and inform the trade union of the result in writing.

Article 28 In case of finding the operator or the manager of an enterprise or public institution gives orders in violation of rules, forces the employees to run risks in the operation, or there are obvious potential dangers or occupational hazards in the process of the production, the trade union has the right to make proposals, and the enterprise or public institution shall give a timely reply and solve the problem. In case of finding situations that threaten the safety of the employees’ lives, the trade union has the right to advise the enterprise or public institution to withdraw its employees from the dangerous spot, and the enterprise or public institution shall make a decision to handle it in time.

The investigation and handling of industrial death and injury accidents and other production safety accidents of the employees and other problems that seriously damage the health of the employees shall be attended by the trade union. The trade union shall give its opinions on the handling of the case to the relevant departments, and has the right to investigate and affix the liability to the directly responsible persons in charge and relevant responsible persons. The opinions given by the trade union shall be studied and replied to by the relevant departments in time.

Article 29 The trade union has the right to go to the sites of production, work and business of the enterprise, public institution or social organization for investigation, and to supervise the situations concerning the implementation of labor laws and regulations. The relevant departments shall offer their support.

When the trade union investigates a case in which the enterprise, public institution or social organization infringes upon the legitimate rights and interests of the staff and workers, the unit concerned shall offer assistance, give the facts, provide relevant materials, and shall not obstruct or refuse the investigation.

The trade union shall, in the investigation, keep the business secrets of the enterprise, public institution or social organization in accordance with law.

Article 30 The trade union shall participate in the supervision of the management and use of the social insurance fund, and in the implementation of the minimum salary and the minimum subsistence guarantee.

The trade union has the right to urge the work units to pay social insurance funds such as the pension, medical care, industrial injury, unemployment, maternity, etc.

Article 31 In case that the relevant personnel of the enterprise, public institution or social organization illegally detains the employees' legal certificates such as the resident identification card., does other acts that infringe upon the employees’ legitimate rights and interests such as illegal body search, detention, personal insult, corporal punishment or beating, the trade union has the right to stop such acts, and may give proposals on handling of the case. The departments responsible for the handling of the case shall inform the trade union of their opinions of the handling within 30 days.

Article 32 In such cases as a work stoppage or a slowdown in an enterprise, public institution or social organization, the trade union of the unit shall immediately report to the higher-level trade union, and negotiate, on behalf of the employees, with the enterprise, the public institution, social organization or the relevant parties, report the employees’ opinions and demands, and propose opinions for settlement. In case of a failure in the negotiation, the higher-level trade union shall, jointly with the department of human resources and social security and the competent departments in charge of that unit, go to the unit where the event occurs to investigate it, and consult jointly for an appropriate handling.

The enterprise, public institution or social organization shall satisfy the reasonable demands raised by the employees, and the trade union shall assist the enterprise, public institution or social organization to resume the production and restore the working order as soon as possible.

Article 33 In case of an infringement upon the legitimate rights and interests of the staff and workers, the trade union shall support them to file their complaints and apply for arbitration, bring a lawsuit, and provide legal services.

Article 34 The trade union shall support the operators or managers of the work unit to perform production and business activities and scientific management, and shall, jointly with the work unit, strengthen the theoretical and political guidance to staff and workers, educate the staff and workers to do the job with the awareness of being the masters of the country, take good care of the State or the work unit property, organize the mass participation of the staff and workers in the activities of rationalization proposals, technical innovations and labor and skills competition, in spare-time cultural and technical studies and training, and in vocational education and cultural and sports activities to promote the education of occupational safety and health and labor protection.

Article 35 The trade union shall assist the work unit to organize the staff and workers to take part in activities of convalescence and recuperation, operate the collective welfare business for the staff and workers, and do a good job of the social insurance.

Article 36 With the government commission, the trade union shall, jointly with relevant departments, do a good job in the appraising and choosing, commendation, cultivation and administration of model workers and the advanced workers, give publicity to their deeds, and take care of their work and life.

Article 37 The trade union shall assist the people’s governments and relevant units to do a good job in the work of the retired (and retired-on-merit) personnel, and take care of their life and protect their legitimate rights and interests.

Chapter IV  The Staff and Property of the Trade Union

Article 38 The municipal and district federation of trade unions, the sub-district and town/township trade unions shall decide the staff number and reasonably allocate the workforce according to the needs of the work.

The enterprise, public institution or social organization with over 200 staff and workers shall be provided with full-time trade union staff. The number of the full-time trade union staff shall be determined through consultation by the higher-level trade union and the enterprise, public institution or social organization. Those with fewer than 200 staff and workers may be provided with full-time or part-time trade union staff.

Article 39 Before the expiry of the term of office of the chairman, vice chairman (chairmen) and committee members of the trade union, it is prohibited to transfer them from their posts in the trade union or their posts stipulated in the labor contract. If a transfer is necessary due to the need of work, consent shall be obtained from the trade union committee at the same level. In the case of the transfer of the chairman or a vice chairman or the appointment and dismissal of the director of fund examination committee, consent shall also be obtained from the higher-level trade union.

In the case of a transfer of the job of a person in charge of the preparations for the establishment of the trade union, opinions shall be solicited from the higher-level trade union in advance.

The solicitation of opinions from the higher-level trade union shall be made in writing. The higher-level trade union shall reply within 15 days upon the date of receiving the request in writing. Approval shall be taken for granted if no reply is given after the time limit.

In the case of the full-time chairman, vice chairman (chairmen) or committee members of the grass-roots trade unions, from the date of their taking office, the valid period of their labor contract shall be automatically extended, and the period of extension shall match their term of office. In the case of the part-time chairman, deputy chairman (chairmen) or committee members, if the remaining period of their labor contract is shorter than their term of office, the valid period of the labor contract shall be automatically extended to the termination of their term of office. However, during their term of office, the persons who commit serious personal fault and who reach the legal retirement age shall be excluded.

In case that the full-time chairman, deputy chairman (chairmen) or committee members of the grass-roots trade unions no longer serve full-time in the trade union after the termination of their term of office, the unit they work in shall properly arrange their jobs.

Article 40 The labor payment and other welfare treatment for the staff of the grass-roots trade union shall be borne by their unit they work for.

The labor payment and other welfare treatment for the full-time chairman, vice chairman (chairmen) and committee members of the grass-roots trade union shall, in case the State and this Municipality have otherwise provided, be implemented accordingly; and may, in case there are no such provisions, be decided through consultation between the trade union of their work unit or the higher-level trade union and the employer-unit.

The treatment for the staff and workers and the retired and retired-on-merit staff and workers of the trade unions at all levels above the sub-district, township as well as those of the affiliated enterprises or public institutions shall be implemented according to the relevant provisions of the State and this Municipality.

Article 41 When the grass-roots trade union committee needs to use the production (working) hours to hold meetings or to carry out activities, it shall consult with the responsible person(s) of the work unit in advance.

Part-time committee members of the trade union may have 3 working days every month to do trade union work with the salary and welfare treatments. In case of more than 3 working days, the trade union shall ask for consent from the person(s) in charge of the work unit in advance.

Article 42 The work units that have established trade unions shall, before the 15th of every month, appropriate to the trade union the monthly trade union fund, which is 2% of the total salary and wages of all the staff and workers in the previous month. The total amount of salary and wages shall be calculated according to the provisions of the National Bureau of Statistics. The work units that have established an organization for the preparation of establishing the trade union shall appropriate to the trade union the trade union fund from the date of the establishment of the preparatory organization according to the provisions in the preceding paragraph.

The trade unions at all levels shall deliver to their next-higher-level trade union the amount of their fund according to the stipulated ratio.

Article 43 The trade union shall, according to the principle of independent funds, establish the examination and supervision systems of the budget, audit and funds.

The income and expenditure of the trade unions at all levels shall be examined by the trade union funds examination committees at the same levels, be audited by the trade union funds examination committees at the next higher level, and shall be regularly reported to the conference of the members or the conference of the representatives of the members and be subject to supervision. No unit or individual shall embezzle, misappropriate or allot at will the trade union’s funds and property and the fixed assets allocated to the trade unions by the State and the work unit.

The legitimate rights and interests of the enterprise or public institution that belong to the trade union for the purpose of serving the staff and workers are protected by law. No unit or individual person shall change the subordination relationship.

When trade unions are merged, their funds and property shall be owned by the merged trade union. When a trade union is canceled, its funds and property shall be handled by the higher-level trade union.

Article 44 The people’s governments at all levels and work units shall provide the same-level trade unions with offices and facilities.

Chapter V  Legal Liabilities

Article 45 Against anyone who acts in violation of the provisions of these Regulations that infringes upon the legal rights and interests of a trade union, the trade union has the right to apply to the people’s governments or relevant departments for handling, or bring a lawsuit in a people’s court according to law.

The municipal and district federation of trade unions may supervise and urge the rectification of acts in violation of the provisions of these Regulations by issuing a rectification notice from the perspective of the trade union’s supervision on the enforcement of the labor law and other forms.

Article 46 Against anyone who, in violation of the provisions of these Regulations, obstructs the employees’ legal participation and organization of the trade union, or obstructs the assistance and guidance of the higher-level trade union for the staff and workers on their preparation for the establishment of the trade union, the department of human resources and social security shall order the violator to make corrections. In case of a refusal of correction, the department of human resources and social security shall apply to the municipal or the district people’s government for handling. In case of an obstruction by means of violence or threat that causes serious consequences and thus constitutes a crime, the violator shall be prosecuted for criminal liability according to law.

Article 47 Against anyone who, in violation of the provisions of these Regulations, transfers at will the trade-union job posts or the labor-contract-stipulated job posts of the chairman, vice chairman (chairmen) or committee members of the grass-roots trade union and the job of the person(s) in charge of the preparations for the establishment of the trade union, the trade union of the work unit or the higher-level trade union may submit the case to the department of human resources and social security, which shall order a correction and a restoration to the original job post. Any losses and damages shall be compensated.

In case that the work unit arbitrarily alters its labor contracts, the chairman, vice chairman (chairmen) or committee members of the trade union, or the person(s) in charge of the preparation for the establishment of the trade union may apply for a labor arbitration according to law, and may bring a lawsuit in a people’s court if the arbitration is not accepted.

In case anyone insults, defames or inflicts personal injuries to the staff of the trade union who perform their duties according to law, and thus constitutes a crime, the violator shall be prosecuted for criminal liability according to law. If the acts are not serious enough to constitute a crime, the violator shall be punished by the public security organ according to the Regulations of the People’s Republic of China on Administrative Penalties of Public Security.

Article 48 In case anyone does any one of the following acts in violation of the provisions of these Regulations, the department of human resources and social security shall order a restoration of the injured party’s job and a retroactive payment for the period after the labor contract is terminated. If the employee or the trade union staff member is not willing to resume his/her job, the department of human resources and social security shall order a compensation twice the annual income of the injured party and an economic compensation according to the provisions on the termination of the labor contract:

1. the discharge of the labor contract due to the employee's participation in the trade union activities; and

2. the discharge of the labor contract due to the trade union staff member’s performance of the duties provided in these Regulations.

Article 49 In case anyone does any one of the following acts in violation of the provisions of these Regulations, the municipal or district people’s governments shall order a correction and handle it according to law:

1. obstructing the trade union from organizing the staff and workers to exercise their democratic rights according to law by means of the conference of the representative of the staff and workers (the conference of the staff and workers) and other forms;

2. illegally canceling or merging the trade union;

3. obstructing the trade union’s participation in the investigation and handling of accidents involving the employee’s workplace injuries and other cases that infringe upon the legitimate rights and interests of the employees; and

4. refusing consultation on the basis of equality without proper reasons.

Article 50 In case of an embezzlement, misappropriation or allocation and transfer at will of the trade union’s property and funds, and a refusal of return them, the trade union may bring a lawsuit in a people’s court to demand a return and a compensation for the loss.

Article 51 If an organization is not organized and established according to the Constitution of the China Federation of Trade Unions and in violation of these Regulations, but conducts activities in the name of the trade union or replaces the trade union to exercise the duties and rights of the trade union, it shall be banned according to law by the administrative department in charge of the registration of mass organizations.

Article 52 In case that the work unit does not pay the trade union funds when it is overdue, or pay less, the trade union shall give it a notice of urging for a payment within a time limit. When the payment is again overdue, the grass-roots trade union or the higher-level trade union may, according to law, apply to a people’s court for a pay warrant. In case that the pay warrant is not performed, the trade union may apply to the people’s court for compulsory enforcement according to law.

Article 53 In case that relevant units or individuals violate the provisions of these Regulations, the relevant departments shall, in addition to pursue their corresponding legal liabilities according to law, collect and release the relevant information to the public credit information platform of this Municipality and take disciplinary measures in accordance with the law.

Article 54 In case that a trade union staff member violates the provisions of these Regulations and infringes upon the rights and interests of the staff and workers or of the trade union, the same-level trade union or the higher-level trade union shall order a correction, or impose a penalty. If the case is serious, the wrongdoer shall be removed from the office according to the Constitution of the China Federation of Trade Unions. In case there are losses and damages, the wrongdoer shall be liable for compensation. In case the wrongful act constitutes a crime, the wrongdoer shall be prosecuted for criminal liability according to law.

Chapter VI  Supplementary Provision

Article 55 These Regulations shall be effective as of May 1, 1995.