The nature of the “Job rotation” system
Ask by:Finance Industry HR
Dear Lawyer! Our company is a foreign company in Shenzhen. Due to the business requirements and the needs of risk control, we ask some leadership positions to undergo regular job rotation as a usual practice. I am wondering whether there is any risk of the operation.
Answered by: RDL-Shenzhen Liang Zhenyu Apprentice lawyer
Hello! Due to the business requirements, it is a common way in large foreign enterprises to implement job rotation system. However, there is no definition of job rotation in the Employment and labor law in China. From the perspective of rotation practice, we tend to define the job rotation as the job transfer.
Generally, job transfer is divided into the following types:
Statutory transfer. This kind of transfer is based on relevant clauses of the Labor Contract Law, such as article 40(2). If the company can prove that the employee is incompetent to his position, the company may adjust the job position.
Agreed transfer. To reduce the risks of disputes, the the company need adequate preparation in advance, which is the clause related to job transfer in the employment contract. In this way, the company may adjust the job position when reach the agreed conditions.
Consulted transfer. The key point of the transfer is the consensus of the both parties. Although there is no requirement in the form, it is recommended to take written form in order to keep the documentary evidence.
Reasonable unilateral transfer. The application of the transfer is strictly demanded. It has to meet the needs of the company's production and operation, such as suspension A, production B. There is no insult or penalty. The company's arrangement has to be overall and indiscriminate.
It is suggested that your company will sufficiently evaluate the risks of different kinds of transfer before operation in order to avoid unnecessary disputes.