Youssefs Training Shizzle

8/3/2019 Youssefs Training Shizzle

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China

For centuries China stood as a leading civilization, outpacing the rest of the world in the arts and sciences, but

in the 19th and early 20th centuries, the country was beset by civil unrest, major famines, military defeats, and

foreign occupation. After World War II, the Communists under MAO Zedong established an autocratic socialist

system that, while ensuring China's sovereignty, imposed strict controls over everyday life and cost the lives of

tens of millions of people. After 1978, MAO's successor DENG Xiaoping and other leaders focused on market-

oriented economic development and by 2000 output had quadrupled. For much of the population, livingstandards have improved dramatically and the room for personal choice has expanded, yet political controls

remain tight. China since the early 1990s has increased its global outreach and participation in international

organizations.1

Facts and Statistics of China2

Location: Eastern Asia bordering Afghanistan 76 km, Bhutan 470 km, Burma 2,185 km, India 3,380 km,

Kazakhstan 1,533 km, North Korea 1,416 km, Kyrgyzstan 858 km, Laos 423 km, Mongolia 4,677 km, Nepal

1,236 km, Pakistan 523 km, Russia (northeast) 3,605 km, Russia (northwest) 40 km, Tajikistan 414 km,

Vietnam 1,281 km

Capital: Beijing

Climate: extremely diverse; tropical in south to subarctic in north

Population: 1,336,718,015 (July 2011 est.)Ethnic Make-up: Han Chinese 91.9%, Zhuang, Uygur, Hui, Yi, Tibetan, Miao, Manchu, Mongol, Buyi, Korean,

and other nationalities 8.1%

Religions: Daoist (Taoist), Buddhist, Muslim 1%-2%, Christian 3%-4%

Government: Communist state

GDP per capita by PPP: $7,600 (2010 est.)

Major imports and Exports: Imports: electrical and other machinery, oil and mineral fuels, optical and medical

equipment, metal ores, plastics, organic chemicals. Exports: electrical and other machinery, including data

processing equipment, apparel, textiles, iron and steel, optical and medical equipment

1https://www.cia.gov/library/publications/the-world-factbook/geos/ch.html#top

2http://www.kwintessential.co.uk/resources/global-etiquette/china-country-profile.html


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Culture of China

The culture of the People's Republic of China is a rich and varied blend of traditional Chinese culture with

communist and other international modern and post-modern influences. During the Cultural Revolution, an

enormous number of cultural treasures of inestimable value were seriously damaged or destroyed and the

practice of many arts and crafts was prohibited. Since the early 1980s, however, official repudiation of those

policies has been complemented by vigorous efforts to renew China's remarkable cultural traditions. China's

culture thus remains highly complex, encompassing ancient traditions and modern experiments, in whatsometimes appears to be a rather dynamic but tenuous mix.

The culture of People's Republic was in development long before its foundation in 1949, and is mainly a

combination of traditional Chinese culture and communism. Much of the diversity of China's culture seems to

come from the diversity of the Han Chinese who make up China, and the national minorities who bring

individual cultural elements from their cultures, and contribute to a continuing development of Chinese culture

that follows cultural changes nationwide and internationally. The culture is also very much based on the history

of China which developed mainly in isolation over the hundreds of years in which it has adapted and

assimilated. The ideology of the Communist and Maoist movement beginning in the twentieth century is

certainly crucial to understanding modern Chinese culture. Today, China still has many close cultural links with

other parts of the world, especially within East Asia and Southeast Asia.3

The Chinese Language

Chinese is a family of closely-related but mutually unintelligible languages. These languages are known

variously as regional languages, dialects of Chinese or varieties of Chinese. In all over 1.2 billion people speak

one or more varieties of Chinese. All varieties of Chinese belong to the Sino-Tibetan family of languages and

each one has its own dialects and sub-dialects, which are more or less mutually intelligible.

Chinese Society & Culture

The Importance of "Face"

The concept of 'face' roughly translates as 'honour', 'good reputation' or 'respect'.

There are four types of 'face':

Diu-mian-zi: this is when one's actions or deeds have been exposed to people.

Gei-mian-zi: involves the giving of face to others through showing respect. Liu-mian-zi: this is developed by avoiding mistakes and showing wisdom in action.

Jiang-mian-zi: this is when face is increased through others, i.e. someone complementing you to an

associate.

It is critical you avoid losing face or causing the loss of face at all times.

Confucianism

Confucianism is a system of behaviours and ethics that stress the obligations of people towards one another

based upon their relationship. The basic tenets are based upon five different relationships:

Ruler and subject

Husband and wife

Parents and children

Brothers and sisters Friend and friend

Confucianism stresses duty, sincerity, loyalty, honour, filial piety, respect for age and seniority. Through

maintain harmonious relations as individuals, society itself become stable.

3http://en.wikipedia.org/wiki/Culture_of_the_People%27s_Republic_of_China#Cultural_Revolution


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Collectivism vs. Individualism

In general, the Chinese are a collective society with a need for group affiliation, whether to their family, school,

work group, or country. In order to maintain a sense of harmony, they will act with decorum at all times and

will not do anything to cause someone else public embarrassment. They are willing to subjugate their own

feelings for the good of the group. This is often observed by the use of silence in very structured meetings. If

someone disagrees with what another person says, rather than disagree publicly, the person will remain quiet.

This gives face to the other person, while speaking up would make both parties lose face.

Non-Verbal Communication

The Chinese' Non-verbal communication speaks volumes. Since the Chinese strive for harmony and are group

dependent, they rely on facial expression, tone of voice and posture to tell them what someone feels. Frowning

while someone is speaking is interpreted as a sign of disagreement. Therefore, most Chinese maintain an

impassive expression when speaking. It is considered disrespectful to stare into another person's eyes. In

crowded situations the Chinese avoid eye contact to give themselves privacy.

Chinese Etiquette and Customs

Meeting Etiquette

Greetings are formal and the oldest person is always greeted first. Handshakes are the most common form of

greeting with foreigners. Many Chinese will look towards the ground when greeting someone. Address theperson by an honorific title and their surname. If they want to move to a first-name basis, they will advise you

which name to use. The Chinese have a terrific sense of humour. They can laugh at themselves most readily if

they have a comfortable relationship with the other person. Be ready to laugh at yourself given the proper

circumstances.

Gift Giving Etiquette

In general, gifts are given at Chinese New Year, weddings, births and more recently (because of marketing),

birthdays. The Chinese like food and a nice food basket will make a great gift. Do not give scissors, knives or

other cutting utensils as they indicate the severing of the relationship. Do not give clocks, handkerchiefs or

straw sandals as they are associated with funerals and death. Do not give flowers, as many Chinese associate

these with funerals. Do not wrap gifts in white, blue or black paper. Four is an unlucky number so do not give

four of anything. Eight is the luckiest number, so giving eight of something brings luck to the recipient. Alwayspresent gifts with two hands. Gifts are not opened when received. Gifts may be refused three times before

they are accepted.

Dining Etiquette

The Chinese prefer to entertain in public places rather than in their homes, especially when entertaining

foreigners. If you are invited to their house, consider it a great honour. If you must turn down such an honour,

it is considered polite to explain the conflict in your schedule so that your actions are not taken as a slight.

Arrive on time. Remove your shoes before entering the house. Bring a small gift to the hostess. Eat well to

demonstrate that you are enjoying the food!

Table manners are very important in the Chinese culture, learn to use chopsticks and wait to be told where to

sit. The guest of honour will be given a seat facing the door. The host begins eating first. You should tryeverything that is offered to you. Never eat the last piece from the serving tray. Be observant to other peoples'

needs. Chopsticks should be returned to the chopstick rest after every few bites and when you drink or stop to

speak. The host offers the first toast. Do not put bones in your bowl. Place them on the table or in a special

bowl for that purpose. Hold the rice bowl close to your mouth while eating. Do not be offended if a Chinese

person makes slurping or belching sounds; it merely indicates that they are enjoying their food. There are no

strict rules about finishing all the food in your bowl. Tipping Etiquette: Tipping is becoming more

commonplace, especially with younger workers although older workers still consider it an insult. Leaving a few

coins is usually sufficient.


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Business Etiquette and Protocol in China

Relationships & Communication

The Chinese don't like doing business with companies they don't know, so working through an intermediary is

crucial. This could be an individual or an organization that can make a formal introduction and vouch for the

reliability of your company. Before arriving in China send materials (written in Chinese) that describe your

company, its history, and literature about your products and services. The Chinese often use intermediaries to

ask questions that they would prefer not to make directly. Business relationships are built formally after theChinese get to know you. Be very patient. It takes a considerable amount of time and is bound up with

enormous bureaucracy. The Chinese see foreigners as representatives of their company rather than as

individuals. Rank is extremely important in business relationships and you must keep rank differences in mind

when communicating. Gender bias is nonexistent in business. Never lose sight of the fact that communication

is official, especially in dealing with someone of higher rank. Treating them too informally, especially in front of

their peers, may well ruin a potential deal. The Chinese prefer face-to-face meetings rather than written or

telephonic communication. Meals and social events are not the place for business discussions. There is a

demarcation between business and socializing in China, so try to be careful not to intertwine the two.

Business Meeting Etiquette

Appointments are necessary and, if possible, should be made between one-to-two months in advance,

preferably in writing. If you do not have a contact within the company, use an intermediary to arrange a formalintroduction. Once the introduction has been made, you should provide the company with information about

your company and what you want to accomplish at the meeting. You should arrive at meetings on time or

slightly early. The Chinese view punctuality as a virtue. Arriving late is an insult and could negatively affect your

relationship. Pay great attention to the agenda as each Chinese participant has his or her own agenda that they

will attempt to introduce. Send an agenda before the meeting so your Chinese colleagues have the chance to

meet with any technical experts prior to the meeting. Discuss the agenda with your translator/intermediary

prior to submission. Each participant will take an opportunity to dominate the floor for lengthy periods without

appearing to say very much of anything that actually contributes to the meeting. Be patient and listen. There

could be subtle messages being transmitted that would assist you in allaying fears of on-going association.

Meetings require patience. Mobile phones ring frequently and conversations tend to be boisterous. Never ask

the Chinese to turn off their mobile phones as this causes you both to lose face. Guests are generally escorted

to their seats, which are in descending order of rank. Senior people generally sit opposite senior people fromthe other side. It is imperative that you bring your own interpreter, especially if you plan to discuss legal or

extremely technical concepts as you can brief the interpreter prior to the meeting. Written material should be

available in both English and Chinese, using simplified characters. Be very careful about what is written. Make

absolutely certain that written translations are accurate and cannot be misinterpreted. Visual aids are useful in

large meetings and should only be done with black type on white background. Colours have special meanings

and if you are not careful, your colour choice could work against you. Presentations should be detailed and

factual and focus on long-term benefits. Be prepared for the presentation to be a challenge.

Business Negotiation

Only senior members of the negotiating team will speak. Designate the most senior person in your group as

your spokesman for the introductory functions. Business negotiations occur at a slow pace. Be prepared for the

agenda to become a jumping off point for other discussions. Chinese are non-confrontational. They will notovertly say 'no', they will say 'they will think about it' or 'they will see'. Chinese negotiations are process

oriented. They want to determine if relationships can develop to a stage where both parties are comfortable

doing business with the other. Decisions may take a long time, as they require careful review and

consideration. Under no circumstances should you lose your temper or you will lose face and irrevocably

damage your relationship. Do not use high-pressure tactics. You might find yourself outmanoeuvred. Business

is hierarchical. Decisions are unlikely to be made during the meetings you attend. The Chinese are shrewd

negotiators. Your starting price should leave room for negotiation.


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What to Wear?

Business attire is conservative and unpretentious. Men should wear dark coloured, conservative business suits.

Women should wear conservative business suits or dresses with a high neckline. Women should wear flat

shoes or shoes with very low heels. Bright colours should be avoided.

Business Cards

Business cards are exchanged after the initial introduction. Have one side of your business card translated intoChinese using simplified Chinese characters that are printed in gold ink since gold is an auspicious colour. Your

business card should include your title. If your company is the oldest or largest in your country, that fact should

be on your card as well. Hold the card in both hands when offering it, Chinese side facing the recipient.

Examine a business card before putting it on the table next to you or in a business card case. Never write on

someone's card unless so directed.

Economy of China

Since the late 1970s China has moved from a closed, centrally planned system to a more market-oriented one

that plays a major global role - in 2010 China became the world's largest exporter. Reforms began with the

phasing out of collectivized agriculture, and expanded to include the gradual liberalization of prices, fiscal

decentralization, increased autonomy for state enterprises, creation of a diversified banking system,

development of stock markets, rapid growth of the private sector, and opening to foreign trade andinvestment. China has implemented reforms in a gradualist fashion. In recent years, China has renewed its

support for state-owned enterprises in sectors it considers important to "economic security," explicitly looking

to foster globally competitive national champions. After keeping its currency tightly linked to the US dollar for

years, in July 2005 China revalued its currency by 2.1% against the US dollar and moved to an exchange rate

system that references a basket of currencies. From mid 2005 to late 2008 cumulative appreciation of the

renminbi against the US dollar was more than 20%, but the exchange rate remained virtually pegged to the

dollar from the onset of the global financial crisis until June 2010, when Beijing allowed resumption of a

gradual appreciation. The restructuring of the economy and resulting efficiency gains have contributed to a

more than tenfold increase in GDP since 1978. Measured on a purchasing power parity (PPP) basis that adjusts

for price differences, China in 2010 stood as the second-largest economy in the world after the US, having

surpassed Japan in 2001. The dollar values of China's agricultural and industrial output each exceed those of

the US; China is second to the US in the value of services it produces. Still, per capita income is below the worldaverage. The Chinese government faces numerous economic challenges, including: (a) reducing its high

domestic savings rate and correspondingly low domestic demand; (b) sustaining adequate job growth for tens

of millions of migrants and new entrants to the work force; (c) reducing corruption and other economic crimes;

and (d) containing environmental damage and social strife related to the economy's rapid transformation.

Economic development has progressed further in coastal provinces than in the interior, and approximately 200

million rural laborers and their dependents have relocated to urban areas to find work. One consequence of

the "one child" policy is that China is now one of the most rapidly aging countries in the world. Deterioration in

the environment - notably air pollution, soil erosion, and the steady fall of the water table, especially in the

north - is another long-term problem. China continues to lose arable land because of erosion and economic

development. The Chinese government is seeking to add energy production capacity from sources other than

coal and oil, focusing on nuclear and alternative energy development. In 2009, the global economic downturn

reduced foreign demand for Chinese exports for the first time in many years, but China rebounded quickly,outperforming all other major economies in 2010 with GDP growth around 10%. The economy appears set to

remain on a strong growth trajectory in 2011, lending credibility to the stimulus policies the regime rolled out

during the global financial crisis. The government vows, in the 12th Five-Year Plan adopted in March 2011, to

continue reforming the economy and emphasizes the need to increase domestic consumption in order to make

the economy less dependent on exports for GDP growth in the future. However, China likely will make only

marginal progress toward these rebalancing goals in 2011. Two economic problems China currently faces are

inflation - which, late in 2010, surpassed the government's target of 3% - and local government debt, which

swelled as a result of stimulus policies, and is largely off-the-books and potentially low-quality.


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Labour Law of China4

Sources of regulation

The relevant law on termination of employment in China is contained primarily in the Labour Law of the

People's Republic of China, 1994 (the "Labour Law"), which came into effect in January 1995, and in 17

regulations pertaining to Labour Law promulgated in 1994. Twelve years after the promulgation of the Labour

Law in 2006, a bill of Labour Contract Law, [1] which has a separate chapter and more detailed provisions for

termination of the employment contract, was brought before the National People's Congress. However, at thetime of writing of this study, it has not passed yet. The most important of these regulations as regards

termination of employment are the Circular of the Ministry of Labour on the Provisions on Personnel Reduction

due to Economic Reasons in Enterprises (No. 447) and the Circular of the Ministry of Labour on the Measures of

Economic Compensation for the Violation and Revocation of Labour Contracts (No. 481).

In addition, some provisions applicable to employment termination were contained in the Provisional Rules on

Dismissal of Workers Violating Labour Discipline in State-Owned Enterprises, 1986 ("the Rules"). However, in

2001, this Rule was invalidated by the Decision of State Council on Abolishing some Administrative Regulations

and Rules Promulgated before the End of 2000, (No. 319, Oct. 6, 2001). The reason for its abolition is that it has

been replaced by the Labour Law and Unemployment Insurance Regulation.[2]

In addition to law and administrative regulation, the local peoples congress and the governments ofprovinces, autonomous regions and municipalities may (and most of them do) issue detailed measures and

rules for the implementation of the Labour Law. Such detailed measures are promulgated based on the Labour

Law, with changes and specific details made in light of local conditions. Thus, in practice when dealing with

labour or employment matters in China, reference should always be made to the administrative regulations

and local regulations in addition to the Labour Law.

Although China is not a case law country, the judicial interpretation of the Supreme Court plays a de facto role

of law and has binding effect on courts at every level.[3] In case of termination of employment, the judicial

Interpretation of the Supreme Court on Application of Laws in Trail of Labour Dispute Cases (1)[4] and (2)[5]

are concerned.

The enactment of the Labour Law heralded a new dawn for industrial relations in China and must be viewedwithin the context of increasing economic and political change. Since the 1970s, new policies have been

introduced promoting economic reform and efficiency, which in general means relinquishing governmental

control and increasing privatization of industry and foreign investment. The impetus away from communist-

type State control of employment has brought with it significant and new problems for industrial relations [6]

and security of employment as private employers gain increased autonomy in the workplace. The new initiative

is a radical change from the previous traditional framework which was based on the premise that the economic

system was run as a single, large State enterprise.

4http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/china.htm#_ftn1


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Scope of legislation

The Labour Law applies to all categories of employees (except public servants, employees of institutions and

social entities (who are treated in accordance with public servant regulations), agricultural workers, those

actively serving in the army, family nurses,[7] and apprentices of a self-employed person[8]) and enterprises.

The Rules apply only to employees of the State and act as a supplement to the Labour Law. Although this study

focuses on the examination of principles of dismissal in relation to the private sector, consideration of

employment in the State sector is relevant in the case of China because of the tradition of all employmentbeing considered as State employment.

Contracts of employment

There are three types of firms in the traditional industrial structure,[9] the largest group being state-owned

enterprises. Under the traditional industrial scheme there are two categories of employment: permanent (or

lifelong) employment and temporary employment, with the former comprising the overwhelming majority of

employment relationships. Clearly, therefore, security of employment is less of an issue under the traditional

structure. Termination of "lifelong" employment was subject to the official approval of the State (the "iron rice

bowl").

The new policies have placed severe constraints on the ability of the traditional labour system to protect

workers' rights and have created the need for new labour legislation to cope with these changes, particularly inrelation to the power to dismiss workers. A central feature of this radical change has been the creation of a

contract system whereby workers are engaged for an indeterminate period of at least one year under written

contracts. However, there are no minimum requirements for the duration of labour contract as regards the

probationary period. It is provided that if the duration of the labour contract is less than six months, the

probationary period shall be no more than fifteen days.[10]

In some instances, however, the concept of permanent employment still applies, even in firms where some

workers are employed underwritten contracts. It is provided that the employer has the obligation to conclude

an indefinite-term labour contract with an employee if he/she has been working in the same employing unit for

ten years or more; provided, however, that the parties concerned agree to extend the term of the labour

contract and the employee concerned asks to do so (Sec. 20, Labour Law). Probationary periods are permitted

up to six months (Sec. 21, Labour Law).

Termination of employment

There are three types of termination of employment: termination on agreement, dismissal by the working unit

(in the discourse of Chinese law, working unit means employer), and terminating the labour contract

unilaterally by the employee.

Employees must also give 30 days. Notice before leaving (sec. 31, Labour Law). However, if there is any one of

the following circumstances, the employee may notify the employer at any time to revoke the labour contract:

(1) within the probation period; (2) where the employing unit forces the labourer to work by resorting to

violence, intimidation or illegal restriction of personal freedom; or (3) failure on the part of the employing unit

to pay labour remuneration or to provide working conditions as agreed upon in the labour contract (sec. 32,

Labour Law).

If the employee breaches the labour contract by illegally terminating employment, he or she shall compensate

the enterprise for economic loss resulted from this breach (Sec 102, Labour Law).


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Dismissal

Dismissals unilaterally made by an employer can be categorized as "unfair dismissal" (Sec. 29), "summary

dismissal" (Sec. 25, or disciplinary dismissal), "normal dismissal" (Sec 26) and "economic dismissal" (Sec. 27).

Although there is no broad principle requiring that all dismissals be effected for a valid or just reason, and the

term "unfair dismissal" is not specifically mentioned, the employer does not have the freedom to terminate

employment at will in all circumstances. The law has created specific categories of dismissals which will beconsidered to be invalid. Thus, under sec. 29 of the Labour Law, a claim of unfair or illegal dismissal would be

successful where the worker is dismissed:

for reasons of incapacity to work due to disease or injury suffered at work;

where the worker is in receipt of medical treatment; or,

in the case of a woman worker, during pregnancy or the puerperal or breast-feeding period.

In addition, it should be pointed out that the Labour Law is open-ended because under sec. 29 it envisages

"other circumstances stipulated by laws, administrative rules and regulations". As this is very recent legislation,

it is reasonable to assume that other categories of "unfair dismissals" will be created in the future in

accordance with this section and in light of the declaratory principles of the law, which state that the aim is "to

protect the legitimate rights and interests of labourers, ... and promote economic development and social

progress" (sec. 1, Labour Law). The concept of the right to work is also specifically mentioned under sec. 4 ofthe Labour Law, but this appears to be merely declaratory.

The list of automatically illegal reasons for dismissal under sec. 29 is very brief and excludes reasons such as

trade union membership and subject matters in respect of which it would be discriminatory to dismiss.

As regards dismissal on grounds of membership in a trade union, it is prohibited by the Trade Union Law,[11]

Sec 52, and the remedies for this unfair dismissal may include reinstatement.

Nevertheless, in relation to the latter, the broad principle enshrined under sec. 12, which prohibits

discriminatory practices in employment on the basis of ethnicity, race, sex or religious belief, can, in

accordance with the fundamental principles of the law, be read as prohibiting dismissals which are

discriminatory.

Certain categories of dismissal are explicitly stated to be fair under Chinese law. Such dismissals may be

effected without notice in some instances.

Dismissal without notice, akin to the concept of "summary dismissal" under the common law, is provided for

under sec. 25 of the Labour Law. This is restricted to serious violations of "labour discipline", or the rules and

regulations of the employing unit, or causing "great losses to the employing unit due to serious dereliction of

duty or engagement in malpractice for selfish ends". Where the worker is being investigated in connection with

a crime, he or she may also be dismissed without notice.

Probationary employment may be terminated where the employee fails to fulfil the required standards for

work.

Sec. 27 of the Labour Law also makes provision for collective dismissals in redundancy situations. The grounds

for such dismissals are narrowly defined. The employer may make a reduction in the workforce where the

employing unit "comes to the brink of bankruptcy or runs into difficulties in production and management, and

if reduction of its personnel becomes really necessary".

A limited attempt is made to alleviate the negative consequences of dismissal from employment. In the case of

redundancy situations, priority for re-employment must be given to redundant employees where the

employing unit recruits personnel up to six months after the redundancy. Further, employees who have been

dismissed or disabled due to work-related injury or disease are entitled to social insurance benefits.


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Notice and prior procedural safeguards

It is compulsory that notice be given for certain categories of dismissals. This is merely a procedural safeguard

and does not affect the employers right to dismiss the employee in such circumstances. Notice is required

where the worker is:

unable to continue his or her original work after illness or injury not suffered at work;

not qualified for the required work; or unable to reach agreement with his or her employer on the modification of the labour contract when

its objective conditions have changed.

The notice period for such categories of dismissal is 30 days (sec. 26, Labour Law).

Also important, in practice, are the serious social restraints on dismissal. For workers in State enterprises, their

work unit provides a variety of services, and dismissal involves much more than the loss of a job. However, with

the development of the Social Security system and social services, the impact of dismissal is not as severe as

before.

There is a requirement that the appropriate trade union and workers be consulted and their opinions sought

on proposed collective dismissals. Further, the labour administrative department must be informed althoughthere is no need for prior authorization. A notice period of 30 days is required for consultation in relation to

redundancy.

In case of individual dismissal, the Trade Union Law provides that the enterprises shall first inform the union

(Sec. 21).[12]

Several provisions provide regulations on: payment of compensation where the worker is unqualified for the

position, where the employing unit breaks a labour contract, [13] or in the event of personnel reduction.[14]

The 1994 Circular on Personnel Reduction reinforces the provisions of the Labour Law and reiterates that

reduction of personnel is only permissible when the employer is on the brink of bankruptcy or deep into

difficulties in production and management. This Circular also requires employers to explain the situation tothe trade union and workers 30 days in advance, and consult on a plan of personnel reduction. Certain

employees may not be retrenched, including victims of occupational accidents, pregnant employees or workers

on sick leave.

Severance pay

Where the employee has been dismissed for economic reasons or in accordance with the provisions of sec. 26

(see above), the employer is required to provide economic compensation. This is also the case where the

employee is contract is terminated by agreement under sec. 24. No compensation is granted where the

employee is dismissed for violation of labour discipline or where he or she neglects his or her duty or engages

in malpractice.

Remedies for individual dismissal must be in the form of damages as there is no provision for reinstatement.However, as mentioned before, Sec. 52 of the Trade Union law provides for reinstatement. In cases of dismissal

during the period of pregnancy, the judgment of reinstatement is common.

In the case of collective dismissals, a redundancy payment is made. Since the law allows compensation for

dismissals due to agreement and for frustration of the contract, it may be more accurate to describe this type

of compensation as a severance payment. The basic rate of economic compensation is one month for each

year of service.


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Avenues for redress

Under sec. 30 of the Labour Law, a worker has the right to appeal his or her dismissal to arbitration, or take

legal proceedings where arbitration is unsuccessful (sec. 77). The avenues for redress include consultation,

mediation, arbitration and litigation.

Similar provisions are also found under sec. 5 of the Rules in relation to State employees. Arbitration is effected

by means of labour dispute arbitration committees, comprised of representatives from the labouradministrative department, the trade union and the employing unit, which have the power to make arbitration

awards or binding decisions. The committee is obliged to follow the principles of legality, fairness and

promptness. However, the employee retains the right to bring a case to the Peoples Court at any stage of

the proceeding. Where the employee wishes to appeal to the Peoples Court against a decision from the

arbitration committee, he or she must do so within 15 days.

Further information

Labour Code of China

[1] The Chinese version of the draft of the Labour Contract Law

[2] Decision of State Council on Abolishing some Administrative Regulations and Rules Promulgated before the

End of 2000, No.319, Oct.6, 2001, (in Chinese)

[3] Regarding the role of the judicial interpretation, there are detailed analyses in Wang Chenguang, Law-making functions of the Chinese courts: Judicial activism in a country of rapid social changes, Frontiers of Law in

China Volume 1, Number 4 December, 2006, Higher Education Press, co-published with Springer-Verlag GmbH.

[4] Judicial Interpretation of the Supreme Court on Application of Laws in Trail of Labour Dispute Cases (1) was

promulgated on March 22nd, 2001 and came into force on April 30th, 2001.

[5] Judicial Interpretation of the Supreme Court on Application of Laws in Trail of Labour Dispute Cases (2) was

promulgated on August 14th, 2006 and came into force on October 1st, 2006.

[6] For further discussion of some of the problems of industrial relations generally, see Y. Zhu: Major changes

under way in Chinas industrial relations, in International Labour Review (1995), Vol. 134, p. 39.

[7] Sec 4, Circular of the Ministry of Labour on implementation of Labour Law, No. 309, 1995.

[8] Sec 7 (5), Judicial Interpretation of the Supreme Court on Application of Laws in Trail of Labour Dispute

Cases (2), No.6, 2006.

[9] State-owned enterprises (SOEs), which belong to the State; collective ownership enterprises (COEs), whichbelong to the responsible collective; and domestic private enterprises (DPEs), which belong to the individual.

[10] Sec 3, Circular of Ministry of Labour on Implementation of Labour Contract Systems, [1996] No.354.

[11] Trade Union Law of the Peoples Republic of China, adopted at the Fifth Session of the Seventh National

Peoples Congress on April 3, 1992, amended in accordance with the Decision on Amending the Trade Union

Law of the Peoples Republic of China made at the 24th Meeting of the Standing Committee of the Ninth

National Peoples Congress on October 27, 2001. The English version is available at the website of the All

China Federation of Trade Unions. Section 52 provides that in any of the following cases in which the provisions

of this Law are violated, the administrative department for labour shall order that the victim be reinstated, his

remuneration payable during the period of the termination of the labour contract be made up, or that a

compensation two times the amount of his annual income be given: (1) the labour contract of a worker or staff

member is terminated due to his participation in trade union activities; or (2) the labour contract of a trade

union functionary is terminated due to the performance of his duties and functions prescribed by this Law.[12] Section 21 of the Trade Union Law: If an enterprise or institution punishes a worker or staff member in a

manner that the trade union considers improper, the trade union shall have the right to advance its opinion.

Before unilaterally deciding to dissolve the labour contract with a worker or staff member, the enterprise shall

inform the trade union of the reasons why; and, if the trade union considers that the enterprise violates laws,

regulations or the contract in question and demands that it reconsider the matter, the enterprise shall study

the opinion of the trade union, and inform the trade union of its final decision in writing. Where a worker or

staff member believes that the enterprise infringes upon his labour rights and interests and therefore applies

for labour dispute arbitration or brings the case before a Peoples Court, the trade union shall give him

support and assistance.

[13] Circular of the Ministry of Labour on Printing and Distributing the Measures of Economic Compensation for

the Violation and Revocation of Labour Contracts (Dec. 1994).

[14] Circular of the Ministry of Labour on Printing and Distributing the Provisions on Personnel Reduction due

to Economic Reasons in Enterprises (14 Nov. 1994).


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Brazil

Following more than three centuries under Portuguese rule, Brazil gained its independence in 1822,

maintaining a monarchical system of government until the abolition of slavery in 1888 and the subsequent

proclamation of a republic by the military in 1889. Brazilian coffee exporters politically dominated the country

until populist leader Getulio VARGAS rose to power in 1930. By far the largest and most populous country in

South America, Brazil underwent more than half a century of populist and military government until 1985,

when the military regime peacefully ceded power to civilian rulers. Brazil continues to pursue industrial andagricultural growth and development of its interior. Exploiting vast natural resources and a large labor pool, it is

today South America's leading economic power and a regional leader, one of the first in the area to begin an

economic recovery. Highly unequal income distribution and crime remain pressing problems. In January 2010,

Brazil assumed a nonpermanent seat on the UN Security Council for the 2010-11 term.5

Facts and Statistics of Brazil6

Location: Eastern South America bordering Argentina 1,224 km, Bolivia 3,400 km, Colombia

1,643 km, French Guiana 673 km, Guyana 1,119 km, Paraguay 1,290 km, Peru 1,560 km, Suriname 597 km,

Uruguay 985 km, Venezuela 2,200 km

Capital: Brazilia

Climate: mostly tropical, but temperate in south

Population: 203,429,773 (July 2011 est.)Ethnic Make-up: white (includes Portuguese, German, Italian, Spanish, Polish) 55%, mixed white and

black 38%, black 6%, other (includes Japanese, Arab, Amerindian) 1%

Religions: Roman Catholic (nominal) 80%

Government: federative republic

GDP per capita by PPP: $10,800 (2010 est.)

Major imports and Exports: Imports: machinery, electrical and transport equipment, chemical products, oil,

automotive parts, electronics. Exports: transport equipment, iron ore, soybeans, footwear, coffee, autos

5https://www.cia.gov/library/publications/the-world-factbook/geos/br.html

6http://www.kwintessential.co.uk/resources/global-etiquette/brazil-country-profile.html


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Culture of Brazil

The culture of Brazil presents a very diverse nature reflecting an ethnic and cultural mixing occurred in the

colonial period involving mostly Native Americans, Portuguese and Africans. In the late 19th and early 20th

centuries Italian, German, Spanish, Arab and Japanese immigrants settled in Brazil and played an important

role in its culture, creating a multicultural and multiethnic society.

As consequence of three centuries of colonization by the Portuguese empire, many aspects of Brazilian cultureare derived from the culture of Portugal. The numerous Portuguese inheritances include the language, the

predominant religion and the colonial architectural styles. These aspects, however, were strongly influenced by

African and Native American traditions, as well as those from other Western European countries. Some aspects

of Brazilian culture are contributions of Italian, German and other European immigrants. Amerindian peoples

and Africans played a large role in the formation of Brazilian language, cuisine, music, dance and religion.

This diverse cultural background has helped boast many celebrations and festivals that have become known

around the world, such as the Brazilian Carnival and the Bumba Meu Boi. The colourful culture creates an

environment that makes Brazil a popular destination for many tourists each year.7

Language in Brazil

Language is one of the strongest elements of Brazil's national unity. Portuguese is spoken by nearly 100 percentof the population. The only exceptions are some members of Amerindian groups and pockets of immigrants,

primarily from Japan and South Korea, who have not yet learned Portuguese. The principal families of Indian

languages are Tup, Arawak, Carib, and G. There is about as much difference between the Portuguese spoken

in Brazil and that spoken in Portugal as between the English spoken in the United States and that spoken in the

United Kingdom. Within Brazil, there are no dialects of Portuguese, but only moderate regional variation in

accent, vocabulary, and use of personal nouns, pronouns, and verb conjugations. Variations tend to diminish as

a result of mass media, especially national television networks that are viewed by the majority of Brazilians.

Brazilian Society & Culture

Brazilian Diversity

Brazil is a mixture of races and ethnicities, resulting in rich diversity. Many original Portuguese settlers married

native women, which created a new race, called 'mestizos'. 'Mulattoes' are descendents of the Portuguese andAfrican slaves. Slavery was abolished in 1888, creating over time a further blurring of racial lines. Unlike many

other Latin American countries where there is a distinct Indian population, Brazilians have intermarried to the

point that it sometimes seems that almost everyone has a combination of European, African and indigenous

ancestry.

Brazilian Family Values

The family is the foundation of the social structure and forms the basis of stability for most people. Families

tend to be large (although family size has been diminishing in recent years) and the extended family is quite

close. The individual derives a social network and assistance in times of need from the family. Nepotism is

considered a positive thing, since it implies that employing people one knows and trusts is of primary

importance.

The Brazilian Class System

Despite the mixing of ethnicities, there is a class system in Brazil. Few Brazilians could be described as racist,

although social discrimination on the basis of skin colour is a daily occurrence. In general, people with darker

brown skin are economically and socially disadvantaged. The middle and upper classes often have only brief

interaction with the lower classes - usually maids, drivers, etc. Class is determined by economic status and skin

colour. There is a great disparity in wage differentials--and therefore lifestyle and social aspirations--among the

different classes. Although women make up 40% of the Brazilian workforce, they are typically found in lower

paid jobs such as teaching, administrative support, and nursing. The 1988 constitution prohibits discrimination

against women, but inequities still exist. The one place where women are achieving equality is in the

government.

7http://en.wikipedia.org/wiki/Culture_of_Brazil


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Etiquette and Customs in Brazil

Meeting Etiquette

Men shake hands when greeting one another, while maintaining steady eye contact. Women generally kiss

each other, starting with the left and alternating cheeks. Hugging and backslapping are common greetings

among Brazilian friends. If a woman wishes to shake hands with a man, she should extend her hand first.

Gift Giving EtiquetteIf invited to a Brazilian's house, bring the hostess flowers or a small gift. Orchids are considered a very nice gift,

but avoid purple ones. Avoid giving anything purple or black as these are mourning colours. Handkerchiefs are

also associated with funerals, so they do not make good gifts. Gifts are opened when received.

Dining Etiquette

If you are invited to a Brazilian's house, arrive at least 30 minutes late if the invitation is for dinner. Arrive up to

an hour late for a party or large gathering. Brazilians dress with a flair and judge others on their appearance.

Casual dress is more formal than in many other countries. Always dress elegantly and err on the side of over-

dressing rather than under- dressing. If you did not bring a gift to the hostess, flowers the next day are always

appreciated.

Business Etiquette and Protocol in BrazilRelationships & Communication

Brazilians need to know who they are doing business with before they can work effectively. Brazilians

prefer face-to-face meetings to written communication as it allows them to know the person with whom

they are doing business. The individual they deal with is more important than the company. Since this is a

group culture, it is important that you do not do anything to embarrass a Brazilian. Criticizing an individual

causes that person to lose face with the others in the meeting. The person making the criticism also loses face,

as they have disobeyed the unwritten rule. Communication is often informal and does not rely on strict rules of

protocol. Anyone who feels they have something to say will generally add their opinion. It is considered

acceptable to interrupt someone who is speaking. Face-to-face communication is preferred over written

communication. At the same time, when it comes to business agreements, Brazilians insist on drawing up

detailed legal contracts.

Business Negotiation

Expect questions about your company since Brazilians are more comfortable doing business with people and

companies they know. Wait for your Brazilian colleagues to raise the business subject. Never rush the

relationship- building time. Brazilians take time when negotiating. Do not rush them or appear impatient.

Expect a great deal of time to be spent reviewing details. Often the people you negotiate with will not have

decision-making authority. It is advisable to hire a translator if your Portuguese is not fluent. Use local lawyers

and accountants for negotiations. Brazilians resent an outside legal presence. Brazilian business is hierarchical.

Decisions are made by the highest-ranking person. Brazilians negotiate with people not companies. Do not

change your negotiating team or you may have to start over from the beginning.

Business Meeting Etiquette

Business appointments are required and can often be scheduled on short notice; however, it is best to makethem 2 to 3 weeks in advance. Confirm the meeting in writing. It is not uncommon for appointments to be

cancelled or changed at the last minute. In Sao Paulo and Brasilia it is important to arrive on time for meetings.

In Rio de Janeiro and other cities it is acceptable to arrive a few minutes late for a meeting. Do not appear

impatient if you are kept waiting. Brazilians see time as something outside their control and the demands of

relationships takes precedence over adhering to a strict schedule. Meetings are generally rather informal.

Expect to be interrupted while you are speaking or making a presentation. Avoid confrontations. Do not appear

frustrated with your Brazilian colleagues.


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Dress Etiquette

Brazilians pride themselves on dressing well. Men should wear conservative, dark coloured business suits.

Three-piece suits typically indicate that someone is an executive. Women should wear suits or dresses that are

elegant and feminine with good quality accessories. Manicures are expected.

Business Cards

Business cards are exchanged during introductions with everyone at a meeting. It is advisable, although notrequired, to have the other side of your business card translated into Portuguese. Present your business card

with the Portuguese side facing the recipient.

Economy of Brazil

Characterized by large and well-developed agricultural, mining, manufacturing, and service sectors, Brazil's

economy outweighs that of all other South American countries, and Brazil is expanding its presence in world

markets. Since 2003, Brazil has steadily improved its macroeconomic stability, building up foreign reserves, and

reducing its debt profile by shifting its debt burden toward real denominated and domestically held

instruments. In 2008, Brazil became a net external creditor and two ratings agencies awarded investment grade

status to its debt. After record growth in 2007 and 2008, the onset of the global financial crisis hit Brazil in

September 2008. Brazil experienced two quarters of recession, as global demand for Brazil's commodity-based

exports dwindled and external credit dried up. However, Brazil was one of the first emerging markets to begina recovery. Consumer and investor confidence revived and GDP growth returned to positive in 2010, boosted

by an export recovery. Brazil's strong growth and high interest rates make it an attractive destination for

foreign investors. Large capital inflows over the past year have contributed to the rapid appreciation of its

currency and led the government to raise taxes on some foreign investments. President Dilma ROUSSEFF has

pledged to retain the previous administration's commitment to inflation targeting by the Central Bank, a

floating exchange rate, and fiscal restraint.


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Labour Law of Brazil8

Sources of regulation

The Constitution of the Federal Republic of Brazil (FC) of 1988 is the primary source of labour law. Chapter II,

which deals with social rights, contains comprehensive provisions on the rights of workers (art. 7), security of

tenure (art. 7(1)) and protection against arbitrary dismissal.

The source of labour law on termination of employment is to be found in the Consolidation of Labour Laws(CLL), adopted in Legislative Decree No. 5452 of 1 May 1943. It contains standards of substantive and

procedural law on termination of employment. An additional source of labour law dealing with compensatory

indemnification for termination of employment by the employer is Act No. 8036 of 11 May 1990, which

establishes the Guarantee Fund for Length of Service (see below).

The decisions of the labour courts and arbitration awards (art. 114, FC), international treaties and case law

supplement these sources of law. Case law is a subsidiary source when it is compatible with the fundamental

principles of labour law (sec. 8, CLL).

Scope of legislation

Public employees of the Federal Union, the states and counties, staff working in these administrative bodies,

and employees of parastatal administrative bodies subject to special conditions of service which put them inthe same category as public employees,[1] are excluded from the scope of application of the CLL (sec. 7(c) and

(d), CLL).[2]

Persons employed in the banking and cinematography industries, the telephone services, musicians, railway

workers, crews of vessels of the national merchant marine and vessels engaged in river and lake navigation,

workers employed in cold storage, stevedoring and dockers services, miners, journalists, teachers, chemists,

women workers and young persons are subject to special labour protection rules (Part III, CLL).

Contracts of employment

An individual contract of employment is a tacit or express agreement respecting the employment relationship

(sec. 442, CLL). Such contracts may be concluded either orally or in writing, for a specified or unspecified

period. A contract for a specified period is a contract in which duration is fixed in advance or which dependsupon the performance of specified services or on the occurrence of a particular event, the approximate date of

which can be foreseen. Contracts for a specified period are valid only if they govern services whose nature or

transitional character justifies the fixing of their duration in advance, transitional activities carried out by the

undertaking, and contracts of a probationary nature (sec. 443, CLL).

Contracts concluded on a probationary basis may not exceed 90 days (sec. 445, CLL). The first year of a contract

for an unspecified period is deemed to be a trial period and compensation for termination of employment is

not payable until it has been completed (sec. 478, CLL).

8http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/brazil.htm
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Termination of employment

The CLL does not stipulate the conditions for the termination of the employment contract (other than at the

employers initiative), but it does refer to such conditions in the provisions governing compensation.

Employment may be terminated, other than at the initiative of the employer, as follows:

by the worker;

for reasons unrelated to the wishes of the parties;[3]

through the operation of law; by mutual consent of the parties;

upon the retirement or death of the worker; and

on expiry of the contract period or completion of the task.

Termination of employment by the worker includes resignation. In this regard, the law provides that if the

worker has been employed for more than one year, the letter of resignation or the attestation releasing the

worker from the employment contract, signed by the worker, will be valid only when it is submitted with the

support of the competent trade union or presented to the competent authority of the Ministry of Labour (sec.

477(1), CLL).

Resignation for valid reasons is also permitted and a worker is entitled to consider his or her contract cancelled

and claim the compensation due in the following cases (sec. 483, CLL):[4] if he or she is required to perform services which are beyond his or her powers or are prohibited by

law, contrary to morality or not covered by the contract;

if he or she is treated with excessive severity by the employer or his or her superiors;

if he or she runs an obvious risk of serious injury;

if the employer fails to fulfil his or her contractual obligations;

if the employer or his or her representative commits any act detrimental to the honour and good

repute of the employee or a member of the employees family;

if the employer or his or her representative assaults the employee, except in case of legitimate self-

defence or defence of another; or

if the employer reduces the work of an employee who is paid at piece or task rates in such a manner

as to affect materially the amount of the wages earned.

In the situations envisaged by the fourth and seventh grounds above, the employee may request cancellation

of the contract and payment of the corresponding compensation, whether or not he or she continues to work

in the undertaking until the final ruling has been handed down.

In addition, the employee is entitled to suspend work or cancel the contract if he or she has to perform any

statutory duty that is incompatible with the continuation of the employment. In the case of an individually

owned undertaking, the employee is entitled to cancel the contract of employment in the event of the death of

the employer.[5]
http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/brazil.htm#_ftn3http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/brazil.htm#_ftn4http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/brazil.htm#_ftn5http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/brazil.htm#_ftn5http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/brazil.htm#_ftn4http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/brazil.htm#_ftn3


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Dismissal

The employment relationship may be terminated by the employer for just cause (sec. 482, CLL). The following

constitute situations sufficient to establish just cause: :

dishonesty;

misconduct or bad behaviour;

habitual engagement by the employee in commercial transactions on his or her own account or for

another without his or her employers permission, if this involves competition with the undertaking in

which he or she is employed or is prejudicial to the performance of his or her work;

a sentence passed on the employee by a criminal court without suspension of the execution of the

penalty;

idleness of the employee in the performance of his or her duties;

habitual drunkenness or drunkenness while on duty;

disclosure of a secret of the undertaking;

breach of discipline or insubordination;

desertion of post;

any act detrimental to the honour or good repute of another which is committed during employment,

or an assault under the same conditions, except in case of legitimate self-defence or defence of

another;

any act detrimental to the honour or good repute of, or an assault against, the employer or a superior,

except in case of legitimate self-defence or defence of another; or

habitual indulgence in games of chance.

If it is established by an administrative inquiry that the employee is guilty of acts which are detrimental to

national security, such proof would also constitute valid grounds for the dismissal of the employee.

Further, the law prescribes the following series of situations as grounds for the employer to terminate a

contract:

abusive acts committed by strikers during a strike action, depending on the nature of any prejudice

caused as regards the rights of others (art. 9(2), FC). In this sense, mere participation in a strike action

does not constitute serious misconduct, but active participation in a strike which is recognized as

illegal, or in violent or restraining acts which impede the access of others to the workplace, is a valid

reason for dismissal;[6]

in the case of banking employees, the persistent failure to pay debts which are lawfully due (sec. 508,

CLL); and

the unjustified refusal of the employee to obey the employers policies on occupational safety andhealth and on the use of personal protective equipment against harmful substances, supplied by the

employer, which are measures taken to safeguard the health of the worker himself or herself ( sec.

158, CLL).

The Constitution also contains provisions on trade union immunity. It prohibits the dismissal of a unionized

employee, except on account of a serious offence, from the moment he or she registers as a candidate for a

leadership or representative position in the trade union and for one year thereafter (art. 8(VIII), FC).[7]

Federal employment law provisions also protect workers representatives on the Internal Accident Prevention

Commission (CIPA) may not be arbitrarily dismissed (sec. 165, CLL). This is also enshrined in the Constitution,

which prohibits arbitrary or unjustified dismissal of employees elected to the position of a director of the CIPA,

from the date of registration as a candidate until one year after the end of his or her term of office (art. 10(IIa),

FC, Transitional Provisions).

Similarly, the Constitution protects pregnant workers from the date the pregnancy is confirmed until five

months after confinement, and declares dismissals on the grounds of pregnancy null and void (art. 10(IIa), FC,

Transitional Provisions). Moreover, the fact that a woman marries or becomes pregnant is not regarded as a

legitimate reason for the termination of her contract of employment (sec. 391, CLL). By the same token, a

pregnant woman is entitled to terminate the contract of employment if it is proved by a medical certificate that

the work she performs is prejudicial to her condition (sec. 394, CLL). Security of employment is guaranteed

through reinstatement to employees who, because of an employment accident or occupational disease, wereobliged to suspend the employment relationship (Act No. 8213 of 24 July 1991).
http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/brazil.htm#_ftn6http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/brazil.htm#_ftn7http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/brazil.htm#_ftn7http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/brazil.htm#_ftn6


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Notice and prior procedural safeguards

Pursuant to sec. 487of the CLL, a party who wishes to cancel the contract without lawful cause is bound to give

notice to the other party of his or her intention as follows:

eight days in advance if wages are paid weekly or at shorter intervals;

thirty days in advance if wages are paid fortnightly or monthly, or if the employees length of service inthe undertaking exceeds 12 months;

If the employer fails to give due notice, the employee is entitled to his or her wages for the period of notice,

and that period is always deemed to be included in the period of employment. If the employee fails to give due

notice, the employer is entitled to deduct the amount of wages corresponding to the period of notice. In the

case of wages paid at piece rates, the calculation for the purposes of these two instances is to be based on the

average of the wages for the last 12 months of employment.

If the contract is cancelled by the employer during the notice period, the employees normal hours of work

must be reduced by two hours a day during the period of notice, without any reduction in wages. A worker

who decides to continue working normal working hours is also allowed to be absent from work for one to

seven days depending on the case (see sec. 487(I) and (II), CLL (see above)).

After the submission of notice, termination of the contract will take effect upon expiry of the term of notice.However, if the party which gave notice reconsiders his or her decision before the expiry of the term of notice,

the other party is entitled to either accept or reject the withdrawal of the notice. If the withdrawal is accepted,

or if work continues to be performed after the expiry of the term of notice, the contract continues in operation

as if notice had not been given (sec. 489, CLL).

If, during the period of notice given to the employee, the employer commits any action justifying immediate

cancellation of the contract, he or she is obliged to pay the wages for the period of notice, without prejudice to

any compensation which may otherwise be due (sec. 490, CLL). An employee who, during the period of notice,

commits any action deemed by law to be a lawful ground for the cancellation of the contract forfeits the right

to wages for the remainder of the period of notice (sec. 491, CLL).

Severance pay

Job security provisions, in the form of severance pay, existed in Brazil well before its new 1988 Constitution.Since the early 1940s, workers with less than ten years and more than one year of tenure were, upon

dismissal, entitled to the equivalent of one monthly wage per year worked at the firm in severance payment.

Workers with more than ten years could only be dismissed for just cause or after a severance payment of

two months wages per year on the job. In 1966, Law 5107/66 established the Unemployment Guarantee Fund

(FGTS), a welfare initiative intended as an alternative to the tenure system (sec. 9, Decree No. 1382)[8]. It has

since become compulsory. The FGTS system required employers to deposit 8% (8.5% since September 2001) of

each employees formal monthly wage into an account managed by a state bank on behalf of the employee.

Deposits are adjusted for inflation and an annual interest rate.

Any employee unfairly dismissed under FGTS is entitled to withdraw a proportion of the FGTS balance

accumulated while he or she was at the firm. Originally fixed at 10%, the 1988 Constitution increased the

penalty amount to 40% of the balance (art. 7(I), FC). Legislation passed in 2001 increased the fine forunjustified dismissals to 50% of the FGTS balance, with the extra 10% paid by the firm directly to the

government (not the worker) (Complementary Law 110).[9] This holds even where the termination is indirect

(constructive), produced by mutual fault, through force majeure, or if the normal expiry of the contract is

confirmed (including in the case of temporary workers). The employer is obliged to pay even if the worker has

not collected wages (sec. 9, Decree No. 1382).[10] All payments are made without prejudice to any legal

proceedings that may follow dismissal and respecting the minimum limit of 60 per cent of the compensation

prescribed by the CLL (sec. 14(2), Act No. 8036).

For those workers who had acquired the right of security of tenure after ten years of service before the

adoption of the Constitution in 1988 the CLL is still applicable and prohibits dismissal except on account of a

serious offence or force majeure (sec. 492, CLL, and sec. 14, Act No. 8036 of 11 May 1990)[11], as well as

providing other guarantees for security of employment prescribed by law.[12]
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Non-permanent employees who have not chosen to participate in the FTGS remain governed by the provisions

of the CLL, under the following terms (secs. 477, 478 and 497, CLL, and sec. 14(1), Act No. 8036):

compensation is based on the highest remuneration which the employee has received in the undertaking (sec.

477, CLL);

compensation for the cancellation of a contract of indeterminate duration must be equal to one

months remuneration for each year of actual service or any fraction of a year exceeding six months;

if the wages are paid by the day, compensation is calculated on the basis of 30 days; if the wages are paid by the hour, compensation is calculated on the basis of 240 hours a month;

if the worker is paid by commission or entitled to a supplement, compensation is calculated on the

basis of the average amount of the commission or percentage received during the last 12 months of

employment;

if the worker is employed at piece rates or by the job, compensation is calculated on the basis of the

average time usually spent by the person concerned in the performance of his or her task, according

to the work which would be done in 30 days (sec. 478, CLL); and,

in the case of contracts for which a time limit has been fixed, if the employer dismisses the worker

without a valid reason, he or she is obliged to pay the worker, by way of compensation, a sum equal to

half the remuneration to which he or she would have been entitled on the expiry of the contract. For

the purpose of the application of the legislative provisions, the variable or uncertain part of the wages

is to be calculated in the manner prescribed for the calculation of the compensation payable for thecancellation of a contract of indeterminate duration (sec. 479, CLL).

Avenues for redress

Pursuant to sec. 643 of the CLL, disputes arising out of relations between employers and employees should be

settled by the labour courts. The Labour Appeal Court, regional labour courts, and the conciliation and

arbitration boards or the courts of ordinary jurisdiction have jurisdiction (sec. 644, CLL). Recourse to the labour

courts is compulsory, without exemption, except for good and sufficient reason (sec. 645, CLL). The conciliation

and arbitration boards are competent to judge and settle (among others) disputes in which the recognition of

the security of tenure of the employee is claimed and disputes relating to compensation for the cancellation of

a contract of employment (sec. 652, CLL).[13] The regional courts, on the other hand, are responsible for

conducting conciliation proceedings and handing down judgement in the last instance on appeals against

decisions of the conciliation and arbitration boards and the ordinary courts dealing with labour matters (sec.678(1)(c), CLL).

In terms of remedies, if both parties are to blame for the act which brought about the termination of

employment, the labour court may reduce the compensation to half the amount which would otherwise be

due (sec. 484, CLL).
http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/brazil.htm#_ftn13http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/brazil.htm#_ftn13


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Labour Code of Brazil

[1] In this respect, the Constitution confers the right to security of employment to public employees with at

least five years continuous service in the public sector (arts. 18 and 19 of the Transitional Provisions of the

Constitution).

[2] Secs. 7(a) and (b) of the CLL have been repealed. They formerly excluded domestic workers (art. 7, FC) and

rural workers (art. 7, FC) from the scope of the CLL. These workers are now covered by the legislation.

[3] For example,force majeure (sec. 502, CLL) and closure of the undertaking (sec. 497, CLL).[4] These circumstances coincide with indirect (constructive) dismissal, whereby the employer deliberately uses

indirect means to make the worker resign from his or her job.

[5] When the operations of the undertaking are wound up because of the death of the employer, the employee

may claim, depending on the circumstances, compensation based on the highest remuneration paid him or her

during the period of service or twice the normal compensation, as provided by secs. 477 and 497of the CLL.

[6] See Act No. 7783 of 28 June 1989, and court judgement in TRT-4.a, Reg. 4th Round, Proc. 9.016/87, 31 May

1988.

[7] This is also the case for legislation relating to trade union officers and alternates from the time of

registration of their candidature up to 90 days following the expiry of their term of office.

[8] Decree No. 1382 of 31 January 1995, which amends the regulatory standards of the Guarantee Fund for

Length of Service (Diario Oficial, 1 February 1995).

[9] Complimentary Law 110 of 06/25/2001, regulated by the Decree-law 3914 of 09/11/2001).[10]10 Decree No. 1382 of 31 January 1995, which amends the regulatory standards of the Guarantee Fund for

Length of Service (Diario Oficial, 1 February 1995).

[11] Act No. 8036 of 11 May 1990 groups in one piece of legislation the regimes of the Guarantee Fund for

Length of Service and the CLL. It provides that, after 5 October 1988, all workers will have the right to an

interest-bearing account, adjusted for inflation, in which an employer makes monthly deposits of 8 per cent of

the employees wages in the previous month. Security of tenure acquired before 15 October 1988 (date on

which the Constitution was promulgated) is thereby safeguarded. It further states that the period of service of

workers who entered into contracts under the protection of the CLL before the Constitution took effect will be

compensated on the basis of the provisions of the CLL.

[12] As, for example, under secs. 497 and 498 of the CLL, by virtue of which, in the event of the closing of the

undertaking, establishment, branch or agency, or of necessary downsizing, for reasons other than reasons of

force majeure, a permanent employee who is dismissed is entitled to twice the amount of compensation due inthe event of the cancellation of a contract of indeterminate duration. Note that an application for the dismissal

of a permanent employee is valid only if it is made with the cooperation of the trade union concerned, or, if

there is no union, before the competent local authority of the Ministry of Labour (secs. 498 and 500, CLL).

[13] In localities which do not fall within the jurisdiction of the conciliation and arbitration boards, the judges of

ordinary jurisdiction shall be responsible for the administration of justice in labour matters (secs. 668 and 669,

CLL).
http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/brazil.htm#_ftnref1http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/brazil.htm#_ftnref2http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/brazil.htm#_ftnref3http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/brazil.htm#_ftnref4http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/brazil.htm#_ftnref5http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/brazil.htm#_ftnref6http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/brazil.htm#_ftnref7http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/brazil.htm#_ftnref8http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/brazil.htm#_ftnref9http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/brazil.htm#_ftnref10http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/brazil.htm#_ftnref11http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/brazil.htm#_ftnref12http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/brazil.htm#_ftnref13http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/brazil.htm#_ftnref13http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/brazil.htm#_ftnref12http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/brazil.htm#_ftnref11http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/brazil.htm#_ftnref10http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/brazil.htm#_ftnref9http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/brazil.htm#_ftnref8http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/brazil.htm#_ftnref7http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/brazil.htm#_ftnref6http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/brazil.htm#_ftnref5http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/brazil.htm#_ftnref4http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/brazil.htm#_ftnref3http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/brazil.htm#_ftnref2http://www.ilo.org/public/english/dialogue/ifpdial/info/termination/countries/brazil.htm#_ftnref1


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Netherlands

The Dutch United Provinces declared their independence from Spain in 1579; during the 17th century, they

became a leading seafaring and commercial power, with settlements and colonies around the world. After a

20-year French occupation, a Kingdom of the Netherlands was formed in 1815. In 1830 Belgium seceded and

formed a separate kingdom. The Netherlands remained neutral in World War I, but suffered invasion and

occupation by Germany in World War II. A modern, industrialized nation, the Netherlands is also a large

exporter of agricultural products. The country was a founding member of NATO and the EEC (now the EU), andparticipated in the introduction of the euro in 1999. In October 2010, the former Netherlands Antilles was

dissolved and the three smallest islands - Bonaire, Sint Eustatius, and Saba - became special municipalities in

the Netherlands administrative structure. The larger islands of Sint Maarten and Curacao joined the

Netherlands and Aruba as constituent countries forming the Kingdom of the Netherlands.9

Facts and Statistics of the Netherlands10

Location: Western Europe, bordering Belgium 450 km, Germany 577 km

Capital: Amsterdam

Population: 16,847,007 (July 2011 est.)Ethnic Make-up: Dutch 83%, other 17% (of which 9% are non-Western origin mainly Turks, Moroccans,

Antilleans, Surinamese and Indonesians) (1999 est.)

Religions: Roman Catholic 31%, Protestant 21%, Muslim 4.4%, other 3.6%, unaffiliated 40%GDP per capita by PPP: $40,300 (2010 est.)

Major imports and Exports: Imports: machinery and transport equipment, chemicals, fuels, foodstuffs,

clothing. Exports: machinery and equipment, chemicals, fuels; foodstuffs

9https://www.cia.gov/library/publications/the-world-factbook/geos/nl.html

10http://www.kwintessential.co.uk/resources/global-etiquette/netherlands.html


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Culture of the Netherlands

Dutch culture, or the culture of the Netherlands, is diverse, reflecting regional differences as well as the foreign

influences thanks to the merchant and exploring spirit of the Dutch and the influx of immigrants. The

Netherlands and Dutch people have played an important role for centuries as a culturally liberal and tolerant

centre.11

The Dutch LanguageDutch, the official language, is spoken by around 90% of the population. Around 350,000 people, or 2.2% of the

population, speak Frisian as their first language, mainly in the northern province of Friesland, where it is

recognised as an official language. Turkish and Arabic are also spoken in the Netherlands, each by over 0.6% of

the population.

Dutch Society & Culture

The Role of the Family

The Dutch see the family as the foundation of the social structure. Families tend to be small, often with only

one or two children. Relatively few women work outside the house full-time as compared to many other

cultures. This allows mothers to be more available to their children throughout the entire day.

Dutch DemeanourAppearances are important to the Dutch. They are disciplined, conservative, and pay attention to the smallest

details. They see themselves as thrifty, hardworking, practical and well organized. They place high value on

cleanliness and neatness. At the same time, the Dutch are very private people. They do not draw attention to

themselves and do not value the accoutrements of success highly prized by other western societies. They

dislike displays of wealth, as they run counter to their egalitarian beliefs. They do not boast about their

accomplishments or their material possessions.

Egalitarianism

The Dutch are egalitarian and highly tolerant of individual differences. Their children are raised without

gender biases. There is practically no abject poverty in the country because of the social programs,

which, however, also increase the tax burden on workers. This egalitarian outlook is carried over into the

workplace. Even in hierarchical organizations, every person has a right to their opinion and to have it heard.The boss may be the final decision maker, but he/she will typically want input from the workers and will strive

for consensus. Everyone is valued and shown respect.

Dutch Privacy

The Dutch are reserved and formal when dealing with outsiders. They are private people and do not put their

possessions or emotions on display. The Dutch do not ask personal questions and will refuse to answer should

you be foolish enough to intrude on their privacy. Personal life is kept separate from business. If a friendship

develops at work and is carried into the personal arena, this camaraderie will not be brought into the office.

Personal matters are not discussed with friends, no matter how close.

Etiquette and Customs in The Netherlands

Meeting and Greeting

The handshake is the common form of greeting. It is firm and swift, accompanied by a smile, and repetition of

your name. Shake hands with everyone individually including children. Very close friends may greet each other

by air kissing near the cheek three times, starting with the left cheek. Most Dutch only use first names with

family and close friends. Wait until invited before moving to a first-name basis.

Gift Giving Etiquette

If invited to a Dutch home bring a box of good quality chocolates, a potted plant, a book, or flowers to the

hostess. Flowers should be given in odd numbers, but not 13, which is unlucky. Avoid giving white lilies or

chrysanthemums, as these are associated with funerals. Gifts should be wrapped nicely. Wine is not a good gift

if invited for dinner, as the host may already have selected the wines for dinner. Do not give pointed items such

as knives or scissors as they are considered unlucky. Gifts are usually opened when received.

11http://en.wikipedia.org/wiki/Culture_of_the_Netherlands


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Dining Etiquette

Dining is fairly formal in the Netherlands. Table manners are Continental -- the fork is held in the left hand and

the knife in the right while eating. Remain standing until invited to sit down. You may be shown to a particular

seat. Men generally remain standing until all the women have taken their seats. Do not begin eating until the

hostess starts. Most food is eaten with utensils, including sandwiches. The host gives the first toast. An

honoured guest should return the toast later in the meal. Always start with small amounts so you may accept

second helpings. Finish everything on your plate. It is offensive to waste food in the Netherlands. Indicate youhave finished eating by laying your knife and fork parallel across the right side of your plate.

Business Etiquette and Protocol

Building Relationships & Communication

Many Dutch are familiar with doing business with foreigners since the Netherlands has a long history of

international trade. They will want to know your academic credentials and the amount of time your

company has been in business. The business community is rather close and most senior level people know one

another. Older, more bureaucratic companies may still judge you by how you are introduced so it is wise to

have a third-party introduction if possibl

Youssefs Training Shizzle

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