China amended its Women’s Protection Law on October 30, 2022, aiming to give women stronger protection against sexual harassment and gender discrimination. Taking effect on January 1, 2023, the law has added several provisions that shall impose new requirements on businesses regarding female employee management. We discuss the key implications of the new Women’s Protection Law for employers in China.
On October 30, 2022, the Standing Committee of the 13th National People’s Congress, China’s top legislative body, passed the revised Law on the Protection of Women’s Rights and Interests (hereinafter referred to as the “Women’s Protection Law”). The amended Women’s Protection Law, which will take effect on January 1, 2023, added nearly 30 new provisions to enhance women’s protection in areas ranging from gender equality in recruitment and contract negotiation, employer’s obligation in sexual harassment prevention, as well as relief measures to women should their rights and interests being harmed.
The exposure draft for the Women’s Protection Law amendment garnered more than 700,000 comments during the seeking opinion stage, making it the legislative document that was commented the most in recent years. The law was amended in 2005 and 2018, respectively, after being first enacted in 1992.
Given the urgency for businesses to comply with these amendments and the importance for them to develop formal processes to handle issues related to gender discrimination and harassment in the workplace, we discuss key considerations in the new Women’s Protection Law for employers.
Several articles contained in this revision involve the protection of the rights and interests of women employees, which deserves the attention of employers. Below is a list of the key changes.
Despite the widespread condemnation of sexism, gender discrimination in China’s hiring practices is a common occurrence. The new Women’s Protection Law makes more effort to eliminate gender bias in the hiring process.
The document stipulates a list of behaviors that employers must not engage in during the recruitment process, including:
In addition, the new Women’s Protection Law incorporates gender discrimination in the workplace into the scope of labor security supervision. Should an employer violate gender-equality provisions, the human resource and social security authorities shall order it to make corrections. If the employer refuses to make corrections or the circumstances are serious, they shall be fined no less than RMB 10,000 but not more than RMB 50,000. Through this, the non-discrimination-related provisions in the new Women’s Protection Law are expected to be better implemented in practice.
Employers are suggested to double-check whether the above behaviors exist in their recruitment process and if so, make corresponding compliance adjustments according to the requirements of the new Women’s Protection Law.
The new Women’s Protection Law stipulates that “the employer shall not, due to marriage, pregnancy, maternity leave, breastfeeding, and other circumstances, reduce the wages and welfare benefits of female workers, restrict the promotion, promotion, evaluation, and employment of female workers of professional and technical titles and posts, dismiss female workers, unilaterally dissolve the labor (employment) contract or service agreement”.
The 2018 version of the Women’s Protection Law only stipulated that “the employer shall not, due to marriage, pregnancy, maternity leave, breastfeeding, and other circumstances, reduce the wages of female workers, dismiss female workers, and unilaterally dissolve the labor (employment) contract or service agreement”.
In comparison, the new Women’s Protection Law is a big step further toward protecting female employees’ birth rights and addressing gender equality in performance reviews and promotions.
Chinese law specifically forbids sexual harassment in the workplace, and Article 1010 of the Civil Code stipulates that employers must take reasonable steps to prevent sexual harassment and provide appropriate channels of complaint.
The new Women’s Protection Law defines sexual harassment as the form of verbal remarks, written language, images, physical behaviors, or other actions against the will of women.
Specifically, women who are victims of sexual harassment are encouraged to:
On the other hand, the revised Women’s Protection Law makes clear that it is the legal obligation of employers to take measures to prevent sexual harassment, including:
Moreover, the new Women’s Protection Law stipulates that the employer could be subjected to criminal litigation should they fail to take reasonable measures to prevent and stop sexual harassment, and the directly responsible person and other directly liable persons shall have sanctions imposed on them according to law.
Considering the increasingly stringent requirement of sexual harassment prevention under the new Women’s Protection Law and the potentially tremendous and negative impact of sexual harassment cases on businesses, employers in China are suggested to clearly define what types of behaviors are inappropriate and establish a strict anti-harassment code and culture for their businesses.
The new Women’s Protection Law also provides stronger protection of women’s privacy and personal data. Article 28 states that:
Women who are victims of the above-mentioned violations are entitled to apply to the people’s court for a personal safety protection order.
Recent studies proposed that the participation of women in the workforce in China has substantially decreased over the past 30 years, falling to 60.5 percent in 2019 from 73.2 percent in 1990. Economic reforms that caused disadvantages for women, such as a rising gender wage gap, a shortage of childcare and eldercare choices, and a recurrence of old prejudices about women’s labor, have likely contributed to this.
Despite much progress, there is still a sizable salary difference for women. According to a survey by the employment website Zhipin.com, the average income for urban men in Mainland China in 2019 was 22.5 percent higher than that of women. In other words, women in China made 84 percent of what men made for comparable employment in 2019.
The barriers women encounter in some industries account for part of the salary disparity, as Chinese women find it extremely challenging to enter some professions. Some sectors in China, such as the military and some sciences, still impose restrictions on women, which may have long-term effects on their career growth. Moreover, such jobs are also typically paid higher salaries.
According to data from MSCI’s annual Women on Boards report, the average female directorship for Chinese companies stood at 13.8 percent in 2021, compared to 22.6 percent globally and 14.5 percent for developing economies.
However, China performed better in comparison to other neighboring economies, such as Japan and South Korea, where women made up 12.6 percent and 8.7 percent of board directors, respectively.
In 2021, only 6.4 percent of the companies’ CEOs were women, while women CFOs stood at 26.3 percent – above the worldwide average.
As the country struggles to deal with a demographic problem, a string of gender-related scandals have also sparked public outcry over gender inequality. Consequently, in 2021, the government unveiled a new 10-year plan, the Outline of Women’s Development in China (2021-2030), with a strong emphasis on employment rights. The document proposed 75 main goals and 93 supportive measures, covering key areas including health, education, and the economy.
The Outline suggests that by 2030, the basic national policy of equality between men and women will be thoroughly implemented, and the institutional mechanisms to promote equality between men and women and the all-round development of women will be innovated and improved, as part of the government’s major efforts to eliminate discrimination and improve the status of women in China.
China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done so since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at email@example.com.
Dezan Shira & Associates has offices in Vietnam, Indonesia, Singapore, United States, Germany, Italy, India, and Russia, in addition to our trade research facilities along the Belt & Road Initiative. We also have partner firms assisting foreign investors in The Philippines, Malaysia, Thailand, Bangladesh.
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