Labor Law Newsletter is complied by Shanghai LiJi Human Resource Co., Ltd in

English and Chinese. The Chinese version prevails while the English version merely serves as reference.

If you would like to read the previous issues of Labor Law Newsletter, please browse our company website

3rd Issue of 2012

Content

(Press Ctrl and click the subjects of the content to read the text)

Messenger of Regulations

The Minimum Salary Standard is RMB 1450 per month in Shanghai since April 1st

Notice of Further Improving the employment of Non-Shanghai Graduates in Shanghai in 2012

Notice of forwarding ‘ Interim Measures for Social Insurance System Coverage of Foreigners Working within the Territory of China’ of Minister of Human Resources and Social Security

Notice of Related Issues to Issuing Tianjin Employees' Average Salary in 2011

Notice of Distributing Provisions on Managing Enterprise Wage Agreement Recording Review in Tianjin

Yunnan Provincial Government’s Notice of Distributing Regulations on Employees’ Maternity Insurance

Qingdao Provincial Government’s Notice of Related Issues to Provisions on Work-Related Injury

Notice of Releasing 2011 Labor-force Market Guidance Price and Labor Cost Level in Changsha

1

Feature of this Issue

The declaration practice of workers’ Annual income

Q&A

Shanghai Li & Li Management Service Co,Ltd. is a comprehensive and professional company that registered in the Shanghai Industry and Commerce Administration departments and supply service about labor export, management consulting, market planning and labor security consulting. The company's client units are primarily Fortune 500 companies.

Contact: Manager Cai 65216611-5827, Miss Wang 65216611-5834

2

Brief Introduction to Shanghai Li&Li Management Service Company Limited

1、Company Profile

Shanghai Li&Li Management Service Company Limited is a professional company qualified in export of HR Management service, labor dispatch and labor securities consultation service established and it registered with the approval of Shanghai Administration of Industry and Commerce.

Possessing many professional consultants and a group of business talents with rich HR management experience and relying on the national labor and social security departments with all the long-term cooperation and developing perfect computer system, the Company established a country-wide service network to provide efficient, standard and convenient HR Management service all around the country.

By improving service quality, the brand Li&Li has gained a reputation and established a good corporation image in the HR management service field. The business of the Company covers many of branches invested by the top-500 industrial enterprises in the world in China, famous domestic groups and listed companies.

2、Principal Business of Company

(1)Country-wide Dispatch of Employee

●Establish labor relationships of dispatched employees all around the country

●Pay salaries to dispatched employees all around the country

●Pay the social insurance of the dispatched employees in accordance with local policies

●Pay the Public Housing Fund of the dispatched employees in accordance with local policies

●Carry out the procedures related to recruitment and dismissal of dispatched employees in accordance with local policies

●Deal with the labor disputes of dispatched employees

●Organize the physical examination of dispatched employees

●Provide the personnel certificate of dispatched employees

(2)Country-wide Employee Recruitment

●Issue of recruitment information

●Guidance of job application

●Interview

(3)Comprehensive consultation on labor and social securities

●Throughout the country labor affairs agency services

●Professional consultation of laws, regulations and policies

●Consultation of human resource administration practice

3、Company’s service network

We have established 22 branches and cooperated with 47 HR-service agencies subsidiary to the government departments of labor and social securities in Mainland China. So our business scope covers all the province’s capital cities, municipalities and more than 50 prefecture-level cities.

4、Service advantages

Shanghai Shenxin HR Outsourcing Service Co.,Ltd. is a comprehensive organization that supply service about labor services, labor export, market planning and business consulting. At present, the business has expanded to major cities in 23 provinces in China.

Contact: Manager Shi 65216611-5838, Miss Yuan 65216611-5870

3

(1)Complete professional talent system

(2)Powerful support by government

(3)Complete service network

(4)Experienced in business operation

(5)Efficient management of information system

(6)Sufficient trust and support of cooperative customers

(7)Strong scale effect

(8)Strong capital potential

Shanghai LiJi Human Resource Co., Ltd. is a professional organization that supply labor law consulting service. The company has a team of professionals with law background and help the customers solve the various HR issues effectively

Contact: Manager Tian 65246611-5853, Mr. Qiu65216611-5820

4

Messenger of Regulations

The Minimum Salary Standard is RMB 1450 per month in Shanghai since April 1st

With the approval of Shanghai Municipal Government, the minimum salary standard for labors and the minimum living guarantee fee for urban and rural residents will be increased since April 1st.

From April 1st, the monthly minimum salary standard will be adjusted from RMB 1280 to RMB 1450, which is increased RMB 170 and the incense is more than RMB 160 than that in last year. The hourly minimum standard will be adjusted from RMB 11 to RMB 12.5. This is the 19thadjustment since the establishment of minimum salary system in 1993, whose aim is to protect the legal rights of labors.

From April 1st,the minimum living guarantee fee will be adjusted from RMB 570 per month per personfor urban and it will be RMB 5160 (RMB 430 per monthaveragely) for rural residents.

The related parties pointed out when they explain the new minimum salary standard that the standard doesn’t include the individual social insurance fee and hosing fund. Compared with the other standard, Shanghai monthly minimum salary standard is still the highest in China. Besides, the overtime pay, the subsidy of middle shift, night shift or under some special working conditions like high temperature, low temperature, toxic and hazardous are not the part of monthly minimum salary standard. For part-time workers, the wage should not less than the minimum salary standard and the enterprise hasto paythe social insurance fee that the employees and enterprise should pay legally.

Please see the attachment for the full text.

Q: We employed a retired person as a worker. Is it legal that we agreed the labor fee is RMB 800 per month?

A: It is required that those workers who establish special work relationships with the unit, such as retired people should apply the regulations on minimum salary standard. As a result, the monthly labor fee should not be less than the minimum salary standard.

------

Contact of Our Company

Company Name:

Shanghai Li & Li Management Service Co.,Ltd.

Contact:Manager Cai 65216611-5827

Miss Wang 65216611-5834

Shanghai Shenxin HR Outsourcing Service Co.,Ltd.

Contact: Manager Shi 65216611-5838

Miss Yuan 65216611-5870

Shanghai LiJi Human Resource Co., Ltd.

Contact: Manager Tian 65246611-5853

Mr. Qiu65216611-5820

Shanghai XieLi Employment Service Co.,Ltd.

All employees of the company look forward to having closer and more extensive cooperation with our customers. Let's help each other, grow together and seek common development!

9

Contact:Manager Li 65216611-5856

Miss Fang 65216611-5857

Address: 11th Floor, Hua Xi SecuritiesBuilding, No.1 Qu Yang Road, Hong Kou Area, Shanghai

Website:

Tel: (021) 6521 6611

Fax: (021) 6521 5183

All employees of the company look forward to having closer and more extensive cooperation with our customers. Let's help each other, grow together and seek common development!

10