BEIJING, Jan. 10 (Xinhua)-Hong Kong Ta Kung Pao published a commentary entitled "Ten Highlights of the Labor Contract Law" on Jan. 10, saying that China’s Labor Contract Law unified enterprises and workers in the spirit of "law". "Labor Contract Law" highlights the legislative direction of "people-oriented", which is the embodiment of socialist legislative principles and a new milestone in the legal construction of labor and social security in China.

　　The original extract of the article is as follows:

　　The Labor Contract Law came into effect on January 1, 2008. This is another milestone in the legal construction of labor and social security in China since the Labor Law. This law highlights the concept of "people-oriented" and embodies the legislative direction of Socialism with Chinese characteristics.

　　The author believes that the Labor Contract Law has 10 highlights in people-oriented:

　　Highlight people-oriented

　　Highlight 1: There are new regulations on "probation period". Clearly defined the "probation period", "minimum wage level" and "not arbitrarily dismissing probationary workers", and blocked the legal loopholes in the Labor Law.

　　Highlight 2: "One sign a year" is restricted. It is stipulated that "if a fixed-term labor contract is concluded twice in a row, an open-ended labor contract should be concluded", and "when the contract is terminated, the employer should pay economic compensation to the laborer according to the standard of one month per year, with a maximum of 12 months", which limits the short-term contract of "signing once a year".

　　Highlight 3: "Labor dispatch" has laws to follow. It is stipulated that "the employing unit shall not set up a labor dispatch unit to dispatch workers to its own unit or subordinate unit" and "the labor dispatch unit shall pay monthly remuneration to the dispatched workers according to the minimum wage standard stipulated by the local people’s government during the period when they are not working", etc., to limit the phenomenon of abuse of labor dispatch by the employing unit.

　　Highlight 4: "Contract termination" should be compensated. It is stipulated that "unless the laborer is unwilling to renew the labor contract, the employer must give the employee economic compensation", and "the employer is unwilling to renew the contract and needs compensation at the expiration of the contract; The employer shall terminate the contract in violation of the law in double indemnity ". Ending the history that employers don’t have to give employees any economic compensation after the expiration of fixed contracts.

　　Highlight 5: "Arrears of wages" plus compensation. It is stipulated that "if the employer is in arrears or fails to pay the labor remuneration in full, the laborer may apply to the local people’s court for a payment order according to law, and the people’s court shall issue a payment order according to law", and "the employer shall pay additional compensation at a standard of 50% to 100% of the payable amount." This is a heavy hammer to the phenomenon of unpaid wages.

　　Highlight 6: The "written contract" must be concluded within one month. It is stipulated that "if a written labor contract has not been concluded with the employee after one year from the date of employment, in addition to paying twice the salary in accordance with the above provisions, it shall also be regarded as having concluded an open-ended labor contract with the employee". Increased the legal responsibility for not signing a written labor contract.

　　Highlight 7: "Illegal layoffs" should bear the responsibility. It is stipulated that "when retrenching personnel, priority should be given to retaining the following personnel: those who enter into fixed-term labor contracts with a longer term; Concluding an open-ended labor contract; There are no other employees in the family, and there are elderly people or minors who need to be supported. Otherwise, they will bear legal responsibility.

　　Highlight 8: "Occupational hazards" must be specified in advance. It is clearly required that "occupational hazards" and "protective measures" should be clearly stated in the labor contract.

　　Highlight 9: Prevent "useless" workers. It is stipulated that "the salary of a worker during the probation period shall not be lower than 80% of the lowest salary of the same position in the unit or the salary agreed in the labor contract, and it is emphasized that the salary during the probation period shall not be lower than the minimum wage standard where the employer is located".

　　Highlight 10: "freedom of choosing a job" liquidated damages. The labor contract can be "agreed to keep the business secrets of the employer and confidential matters related to intellectual property rights". The employer shall give economic compensation to the workers on a monthly basis during the period of non-competition. Workers who violate the non-competition agreement shall pay liquidated damages to the employer as agreed.

　　The law has also caused controversy, with three main focuses:

　　The first is "increased labor costs". Many enterprises are worried that labor costs will be greatly increased. Xin Chunying, deputy director of the NPC Law Committee, believes that "after careful calculation, the labor cost of law-abiding enterprises will not increase" and "returning the low wage level to a reasonable level will help promote industrial upgrading". The second is to "rebuild the iron rice bowl." This is also a traditional one-sided understanding, because the law also stipulates that "an enterprise can dismiss its employees". For example, in addition to the dismissal reasons such as "being investigated for criminal responsibility according to law", the contract can be terminated at any time for "the employee seriously violates labor discipline or the rules and regulations of the employer", "has a serious impact on the completion of the work tasks of the unit, or refuses to correct after being put forward by the employer". This is the legal protection of the "autonomy" of enterprises in labor and employment. The third is "whose interests should the law protect". Many business people believe that the law "favors workers and harms the interests of enterprises". Many foreign-funded institutions (such as the European Union Chamber of Commerce in China and the American Chamber of Commerce) have proposed that "the implementation of laws that excessively protect the rights and interests of workers will have a negative impact on the investment environment in China".

　　The author thinks that the one-sided understanding of the Labor Contract Law is caused by the long-term insufficient protection of workers’ rights and interests, taking unreasonable labor relations as a matter of course, or ignoring the disadvantaged groups. In essence, the law is intended to protect the legitimate rights and interests of both parties, not to harm the interests of enterprises.

　　Whether people-oriented or capital-oriented is the direction of socialist legislation. A few days ago, the research results of 24 experts and scholars, which lasted more than one year ―― The Current Situation of Employment Discrimination in China and Anti-discrimination Countermeasures ―― and Overseas Anti-employment Discrimination System and Practice came out, which is the largest and most authoritative research in the theory and practice of anti-employment discrimination in China. A total of 3,454 questionnaires in 10 major cities, including Beijing, Guangzhou, Nanjing, Wuhan, Shenyang, Xi ‘an, Chengdu, Zhengzhou, Yinchuan and Qingdao, show that the phenomenon of employment discrimination in China is serious: 85.5% think it is "discriminatory" and 50.8% think it is "very serious" and "relatively serious". Yang Jingyu, director of the NPC Law Committee, said that the new law "is the need to improve the labor legal system in China. Balancing labor relations and protecting the legitimate rights and interests of workers have always been the principle that China labor legislation must follow. ". Sun Baoshu, vice minister of the Ministry of Labor and Social Security, believes that "on the basis of respecting the employer’s autonomy in employment, it is stipulated that labor contracts must be concluded with workers" in order to "effectively protect the legitimate rights and interests of workers".

　　The author thinks that "Labor Contract Law" unifies enterprises and workers in the spirit of "law". Emphasizing the protection of the legitimate rights and interests of workers is the general principle of international labor legislation; Putting people first is the sublimation of "the guiding ideology of legislation". From the Labor Law to the Trade Union Law, from the Employment Promotion Law to the Labor Dispute Mediation and Arbitration Law … The rule of law in China’s labor system is constantly maturing. "Labor Contract Law" highlights the legislative direction of "people-oriented", which is the embodiment of socialist legislative principles and a new milestone in the legal construction of labor and social security in China. (Chen Qun)

Editor: Wang Yuxi

(Text/Zhang Zhifeng Editor/Ma Yuanyuan) In recent years, gree real estate, whose main real estate business has gone from bad to worse, has been "good news frequently" in the fields of big health and big consumption. This time, he finally got a big fall.

A few days ago, gree real estate announced that the transfer of 1.95 billion shares of Kehua Bio, which had been prepared by gree real estate for nearly three months, had to be terminated because the transfer of shares had not been completed so far and could not meet the expectations of all parties to the transaction.

It is worth noting that all kinds of evidence show that the termination of this transaction is directly related to the arbitration case of over 10 billion yuan previously involved by the target company Kehua Bio.

Not long ago, on July 14th, gree real estate announced that its equity participation in Kehua Bio (002022.SZ) involved an arbitration with an amount exceeding 10.5 billion yuan.

At that time, the transferee Shengxiang Bio also said that the transaction had not been notified and decided by the Shenzhen Stock Exchange, and the transaction was uncertain.

This was a win-win transaction in which gree real estate earned the price difference and promoted the strong alliance between the two listed companies in the biomedical field, but it was terminated due to the "thunder" of the transaction target? For all kinds of doubts here, Observer Network tried to contact gree real estate many times, and the other party refused to be interviewed.

From "Xiangbobo" to "Hot Potato"

According to Observer.com, this transaction started in May 2020.

At that time, gree real estate announced that its subsidiary Zhuhai Baolian Asset Management Co., Ltd. acquired 18.63% equity of Kehua Bio at a price of 1.726 billion yuan. After the acquisition, gree real estate became the largest shareholder of Kehua Bio.

Gree real estate also said in the 2020 annual report that the company intends to transform into a large consumption industry featuring tax-free business and a biomedical health industry with a promising development. Among them, "the acquisition of Kehua Bio is an important measure for the company to take substantial steps towards the layout of biomedicine and medical and health fields and improve the industrial layout of the big health sector."

It is understood that Kehua Bio is one of the earliest listed IVD enterprises in China. In the early days, it mainly focused on biochemical immunity business, and then gradually expanded its business related to luminous immunity, POCT and molecular diagnosis. In 2020, the company achieved a revenue of 4.155 billion yuan, a year-on-year increase of 72.11%; The net profit of returning to the mother was 675 million yuan, a year-on-year increase of 233.55%.

However, it took only one year for a dramatic scene to happen.

In May 2021, gree real estate announced that it planned to sell its 18.63% equity of Kehua Bio to Shengxiang Bio, with a total transfer price of 1.95 billion yuan, because of its own industrial structure and business development needs.

After the above transaction is completed, Shengxiang Bio will replace gree real estate as the largest shareholder of Kehua Bio, but Kehua Bio will still have no controlling shareholder or actual controller.

At this time, everyone realized the real reason of gree real estate’s acquisition of Kehua Bio, and made fun of it. The so-called "business development need" is probably to make the difference. After all, the profit after changing hands is more than 200 million yuan, and not everyone can stand this temptation.

We should know that although gree real estate’s operating income in 2018-2020 was 3.078 billion yuan, 4.193 billion yuan and 6.389 billion yuan respectively, it was always on the increase, but its net profit remained at around 500 million yuan, so the situation of increasing income without increasing profits was very obvious.

The net profit of a business is more than 200 million yuan a year, which is almost equivalent to the income of a business that has been busy for half a year. In this case, it seems understandable that enterprises choose to "adjust the direction of industrial layout".

However, just as the three parties involved were trying their best to advance, on July 13th, gree real estate suddenly announced that the target company Kehua Bio was involved in a huge arbitration: the defendants Peng Niancai, Li Ming, Miao Baogang and Xi ‘an Yujing Tongyi Enterprise Management Partnership (Limited Partnership) were brought to Shanghai International Economic and Trade Arbitration Commission.

The case involved an investment agreement reached in June 2018. According to the latest requirements of the arbitration applicant, the amount of compensation applied by Kehua Bio was as high as 10.54 billion yuan, plus liquidated damages, arbitration fees and attorney fees.

The arbitration case has not yet been heard, but the parties have foreseen the possible consequences of the verdict, and Shengxiang Bio decisively chose to "return the goods".

According to the Termination Agreement, Shengxiang Bio paid the down payment of 585 million yuan to Zhuhai Baolian, a subsidiary of gree real estate, in May 2021 according to the Share Transfer Agreement, and Zhuhai Baolian shall refund the said money within three working days after the entry into force of this agreement.

Although Shengxiang Bio still retains the preemptive right of the relevant shares, everyone knows that Kehua Bio, which was originally a "hot potato", has become a "hot potato" overnight. Before the arbitration of over 10 billion yuan has not been settled, I am afraid it is difficult for someone to be willing to take over.

Some media quoted sources as saying that the transaction was terminated because the responsible party was in gree real estate. In 2020, when it acquired the equity of Kehua Bio, its style was radical, and it did not even fully adjust Kehua Bio, which led to the failure to "mine" before the transaction.

"rub hot spots" type transformation road

It is worth mentioning that more people have noticed from this transaction that gree real estate, as an established real estate developer, and Gree Electric, who is in charge of Dong Mingzhu, were originally "twin brothers". Why is it that the reputation is not obvious until now, and even the main business and transformation direction have not been understood?

According to public information, gree real estate, founded together with Gree Electric, belongs to Gree Group, a subsidiary of Zhuhai State-owned Assets Supervision and Administration Commission. In 2009, it was listed through backdoor *ST Starfish.

Around 2015, gree real estate achieved independence under the leadership of former chairman Lu Junsi in 2015. Since then, it has left Gree Group and started diversified transformation from real estate to ports, oceans, tourism, education and hotels.

In fact, it is not so much a diversified transformation as "where it is hot".

For example, in the big health sector, at the beginning of gree real estate’s determination to enter the market in 2016, he announced that he would set up a company in the United States to invest in the medical and health industry, but it was later dropped.

At the beginning of 2020, the sudden epidemic in COVID-19 made Lu Junsi see a "business opportunity", and he established Gog Medical through joint venture with Zhuhai Weichuang Technology Co., Ltd. and Zhuhai Yikai Electronic Technology Co., Ltd. to produce masks and other medical materials.

At that time, gree real estate even announced in a high-profile way that Gog Medical masks were actively promoting the export business, and it was estimated that 100 million disposable medical masks would be exported throughout the year.

You know, masks at that time, as tight materials, have already been fired at a "sky-high price". Therefore, after the news was released, it caused widespread concern and was even inquired by the Shanghai Stock Exchange and was accused of being a "hot spot".

According to the Shanghai Stock Exchange, under the situation of epidemic prevention and control at that time, mask-related production and supply was a hot information of great concern to the market and had a great influence. The news about the mask business in gree real estate was released by the media rather than disclosed by the company, and the Shanghai Stock Exchange immediately questioned the letter-wearing process in gree real estate.

In the reply, gree real estate admitted that the letter wrapping process was illegal, but denied the information of "exporting 100 million medical masks".

According to the announcement, by then, Gog Medical had produced a total of 1.8 million masks and purchased another 2 million from overseas. Gog Medical’s existing production capacity was mainly to protect the city’s demand during the emergency response period and could not meet the export needs. Gog Medical has not yet received specific export orders, and there is great uncertainty whether the above export plan can be realized.

In addition, the layout of duty-free business is also the most important issue in gree real estate in recent years. For a time, gree real estate repeatedly took land at the port of Hong Kong-Zhuhai-Macao Bridge and Hainan Island, and actively planned the tax-free reorganization with Zhuhai.

However, the good times did not last long. At the end of 2020, Lu Junsi, the chairman of the company, was suspected of illegal insider trading in the securities market. According to the relevant provisions of the securities law, the China Securities Regulatory Commission decided to initiate an investigation.

At the same time, gree real estate also said in the announcement that the company’s purchase of 100% equity of Zhuhai Duty Free Group Co., Ltd. may be suspended or terminated due to the fact that Chairman Lu Sijun was put on file for investigation by the CSRC.

Affected by this news, gree real estate’s share price is like a roller coaster. This tepid stock for many years suddenly became a "bull stock" because of the "duty-free concept stocks", and quickly fell into endless decline.

In addition, Kehua Bio, which was later regarded as a major turning point in the biomedical field of enterprise transformation, has experienced the turmoil of transfer and return, making its diversified transformation more confusing.

On the other hand, its main real estate business, in addition to taking several commercial land in Sanya last year to prepare for its concept of "tax exemption", has not taken land in the open market for many years, and as a housing enterprise, all the "three red lines" have stepped on the line, and then it is afraid to face strong supervision in financing.

As of the close of August 9th, gree real estate closed at 8.08 yuan, with a total market value of 15.71 billion yuan, which was 55.4% lower than the high of 18.1 yuan a year ago, and the market value shrank by nearly 20 billion yuan.

Gree real estate nearly a year week K.

Some analysts pointed out to Observer. com that one of Gree’s tax-free concepts and biomedicine, which are now heavily bet, has been suspended and the other is ready to be sold. It can be said that it has been raining all night. Throughout the development of gree real estate in recent years, the company always emphasizes diversified development, on the one hand, the transition span is too large, on the other hand, it seriously ignores the real estate development as the main business and the foundation of the company, which is a taboo for all enterprises to transform.

This article is an exclusive manuscript of Observer. It cannot be reproduced without authorization.