劳部发[1994]447号
（Issued by the Ministry of Labour on 14 November 1994 and effective as of 1 January 1995.）
颁布日期：19941114 　实施日期：19950101 　颁布单位：劳动部

Article 1　These Provisions are formulated in accordance with the relevant provisions of the PRC， Labour Law in order to guide employing work units in the correct exercise of the right to reduce staff.

Article 2　Where there is definitely the need to reduce staff because an employing work unit is on the verge of bankruptcy and is declared by the People's Court to have entered a statutory period of rectification， or because serious difficulties arise in production or business conditions to an extent that reaches the standards for enterprises in serious difficulties as stipulated by the local government， staff may be reduced.

Article 3　Where an employing work unit has the capacity， it shall provide training or assistance in obtaining employment to staff that have been made redundant.

Article 4　Where an employing work unit definitely has a need to reduce staff， it shall act in accordance with the following procedures：

1. It shall， thirty days in advance of notice， explain the situation to all the employees or to the labour union and provide information regarding details of its production and business；

2. It shall submit a staff reduction proposal that shall include the names of the staff to be reduced， when and how staff will be reduced， and the procedures for economic compensation to the staff to be reduced in accordance with laws， regulations and the terms of the collective contract；

3. Opinions regarding the staff reduction proposal shall be solicited from the labour union or all the employees and the proposal shall be revised and improved accordingly；

4. The staff reduction proposal together with the opinions of the labour union or all the employees shall be reported to the local labour administration department and the opinions of the labour administration department shall be heeded； and

5. The employing work unit shall formally announce the staff reduction proposal， handle the procedures for cancellation of labour contracts with the staff to be reduced， pay economic compensation personally to the staff to be reduced in accordance with relevant provisions and issue certificates of redundancy.

Article 5　An employing work unit may not reduce the following staff：

1. Staff that have contracted an occupational disease or suffered an injury on duty and have been confirmed to have lost or partially lost the ability to work；

2. Staff that are within the stipulated period of medical treatment for illness or injury；

3. Female staff that are pregnant， on maternity leave or in a nursing period；

4. Staff in other situations stipulated by laws or administrative provisions.

Article 6　Staff that are unemployed as a result of staff reduction and who joined an unemployment insurance scheme may register with the local labour employment service organization and apply for unemployment relief funds.

Article 7　Where an employing work unit needs to recruit new staff within six months of staff reduction， it must give priority to hiring from among the staff it reduced， and shall report the number of staff to be hired， the time and the conditions on which such staff are to be hired and details of the staff to be given priority to the local labour administration department.

Article 8　The labour administration department shall prohibit and rectify any situation whereby an employing work unit violates laws， regulations or relevant provisions when reducing staff.

Article 9　Where a labour union or an employee submits a reasonable suggestion regarding the reduction of staff， the employing work unit must seriously heed such suggestions.

Where an employing work unit violates laws， regulations or the terms of a collective contract， when reducing staff， the labour union has the right to require the work unit to handle the matter again.

Article 10　Where a labour dispute arises as a result of staff reduction， both parties shall act in accordance with the relevant provisions on labour dispute settlement.

Article 11　Labour administration departments of provinces， autonomous regions and centrally governed municipalities may formulate implementing procedures according to these Provisions in the light of the actual situation in their respective localities.

Article 12　These Provisions shall be effective as of 1 January 1995.