Prohibition Against Forcing Employees to Work to Repay Debts

This is newly proposed content in the Draft Labor Code 2017 (expected to come into effect from January 1, 2018, and replace the Labor Code 2012).

In the draft of the Labor Code 2017, employers are prohibited from conducting the following acts upon concluding and implementing labor contracts:

- Retaining the original copies of personal identification documents, diplomas, and certificates of employees.- Requiring employees to provide a monetary or other asset guarantee for the performance of the labor contract.- Forcing employees to work to repay debts.

Compared to the provisions in the Labor Code 2012, the draft of the Labor Code 2017 has added the prohibition of employers from forcing employees to work to repay debts when concluding and implementing labor contracts.

Additionally, the Draft of the Labor Code 2017 supplements regulations regarding the authority to conclude labor contracts on the employer’s side, which includes:

- The legal representative as stipulated in the enterprise's, cooperative's charter;- The head of the agency, organization, or unit as stipulated by law;- The household owner or the representative of a family household and individuals who directly employ labor;- Those who are legally authorized by the aforementioned individuals.

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