Huawei labour scandal

China’s government has launched an investigation into Huawei, the country’s biggest communications equipment manufacturer, which allegedly persuaded thousands of its long-serving employees to resign and then rejoin the company in a ploy designed to evade China’s new Labour Contract Law.

According to a number of Chinese media reports, more than 7,000 employees, all of whom had worked for Huawei for more than eight years, submitted their resignations – intentionally arranged by Huawei. The company planned that the employees could then sign a new contract, reducing the time each employee would have been employed and the amount of money Huawei would have had to contribute to the workers’ social welfare, pension, and dismissal funds. Later, the company said it had suspended the controversial scheme after holding talks with unions.

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