On 31 August 2014, the Standing Committee of the National People’s Congress issued an amendment to the 12-year-old Safe Production Law, to address ongoing safety problems and provide more effective safety protection to workers.
The work safety amendment came into force on 1 December 2014. The changes will significantly increase the severity of punishment for non-compliant companies and also tighten those companies’ responsibilities to prevent work safety accidents, as summarised below.
Companies will receive comparatively heavier fines for work safety accidents according to the severity level of the accident, with the most severe fines ranging up to RMB20 million (US$3.2 million).
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In addition to possible criminal liability, penalties will also be imposed on the primary responsible manager if the accident occurs due to his or her failure to comply with the law. This will range from 30% to 80% of the manager’s annual income for the previous year, based on the seriousness of the accident.
Possible administrative or criminal liability will be imposed on the primary responsible manager for failure to organise immediate rescue at the time a work safety accident occurs, or if he or she leaves their post, or even escapes, during the accident investigation period.
Work safety inspection authorities can order companies to suspend operations or construction, or cease usage of facilities or equipment. They are authorised to force a company to suspend operations by cutting off the electricity supply, or supply of civil explosives, to compel the company to carry out its work safety duties.
Workplace safety training must be provided to directly employed employees, dispatch employees and student interns. The fine imposed on any employer for failure to provide training, and failure to rectify such non-compliance within the time limit ordered by relevant authorities, can be up to RMB100,000.
According to media reports, the frequency of work safety accidents in recent years prompted the public to urge the government to make legislative change, and to take steps to address inadequate sanctions and the absence of an effective supervision system.
On 31 August 2014, the Standing Committee of the National People’s Congress issued an amendment to the 12-year-old Safe Production Law, to address ongoing safety problems and provide more effective safety protection to workers.
The work safety amendment came into force on 1 December 2014. The changes will significantly increase the severity of punishment for non-compliant companies and also tighten those companies’ responsibilities to prevent work safety accidents, as summarised below.
Companies will receive comparatively heavier fines for work safety accidents according to the severity level of the accident, with the most severe fines ranging up to RMB20 million (US$3.2 million).
In addition to possible criminal liability, penalties will also be imposed on the primary responsible manager if the accident occurs due to his or her failure to comply with the law. This will range from 30% to 80% of the manager’s annual income for the previous year, based on the seriousness of the accident.
Possible administrative or criminal liability will be imposed on the primary responsible manager for failure to organise immediate rescue at the time a work safety accident occurs, or if he or she leaves their post, or even escapes, during the accident investigation period.
Work safety inspection authorities can order companies to suspend operations or construction, or cease usage of facilities or equipment. They are authorised to force a company to suspend operations by cutting off the electricity supply, or supply of civil explosives, to compel the company to carry out its work safety duties.
Workplace safety training must be provided to directly employed employees, dispatch employees and student interns. The fine imposed on any employer for failure to provide training, and failure to rectify such non-compliance within the time limit ordered by relevant authorities, can be up to RMB100,000.
According to media reports, the frequency of work safety accidents in recent years prompted the public to urge the government to make legislative change, and to take steps to address inadequate sanctions and the absence of an effective supervision system.
On 31 August 2014, the Standing Committee of the National People’s Congress issued an amendment to the 12-year-old Safe Production Law, to address ongoing safety problems and provide more effective safety protection to workers.
The work safety amendment came into force on 1 December 2014. The changes will significantly increase the severity of punishment for non-compliant companies and also tighten those companies’ responsibilities to prevent work safety accidents, as summarised below.
Companies will receive comparatively heavier fines for work safety accidents according to the severity level of the accident, with the most severe fines ranging up to RMB20 million (US$3.2 million).
In addition to possible criminal liability, penalties will also be imposed on the primary responsible manager if the accident occurs due to his or her failure to comply with the law. This will range from 30% to 80% of the manager’s annual income for the previous year, based on the seriousness of the accident.
Possible administrative or criminal liability will be imposed on the primary responsible manager for failure to organise immediate rescue at the time a work safety accident occurs, or if he or she leaves their post, or even escapes, during the accident investigation period.
Work safety inspection authorities can order companies to suspend operations or construction, or cease usage of facilities or equipment. They are authorised to force a company to suspend operations by cutting off the electricity supply, or supply of civil explosives, to compel the company to carry out its work safety duties.
Workplace safety training must be provided to directly employed employees, dispatch employees and student interns. The fine imposed on any employer for failure to provide training, and failure to rectify such non-compliance within the time limit ordered by relevant authorities, can be up to RMB100,000.
According to media reports, the frequency of work safety accidents in recent years prompted the public to urge the government to make legislative change, and to take steps to address inadequate sanctions and the absence of an effective supervision system.
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Business Law Digest is compiled with the assistance of Baker & McKenzie. Readers should not act on this information without seeking professional legal advice. You can contact Baker & McKenzie by e-mailing Danian Zhang (Shanghai) at: danian.zhang@bakermckenzie.com
