ASIA PACIFIC EMPLOYMENT LAW GUIDE 2015 LEGAL GUIDE

ASIA PACIFIC EMPLOYMENT LAW GUIDE 2015 LEGAL GUIDE April 2015

HERBERT SMITH FREEHILLS ASIA PACIFIC EMPLOYMENT LAW GUIDE 2015 01 INTRODUCTION I am delighted to introduce to you the 2015 edition of Herbert Smith Freehills' Asia Pacific Employment Law Guide. This latest edition of the Guide contains a high level summary of the key employment laws and principles in 21 jurisdictions across the Asia Pacific region. The Guide is produced and updated annually and has, over the years, become the 'go to' resource for HR managers and in-house counsel with employment-related responsibilities in the region. The Asia Pacific region continues to be a dynamic arena for employment law issues. Language and cultural differences overlay employment laws which are at different stages of evolution and have different goals in mind. A useful approach is to consider the 'employer friendliness' of a particular jurisdiction, with countries like Hong Kong and Singapore at one end of the spectrum. These jurisdictions allow employers to react to market changes relatively easily, and allow for unilateral termination of employment, reflecting the emphasis on providing support for successful commercial endeavours. On the other end of the spectrum are the 'employee friendly' jurisdictions, which provide detailed employee protection and often require consultation and consent prior to any workplace changes. Jurisdictions in this category include Indonesia, Vietnam, Japan, Korea, Thailand and China. Somewhere in the middle are jurisdictions like Australia, New Zealand and India which, whilst highly regulated, still allow employers a degree of flexibility in relation to organisational change and restructure. Navigating the various employment landscapes across the Asia Pacific region remains a complicated task for HR managers and in-house counsel, and we hope this Guide will make that journey a little easier. In addition to the varying labour laws, the past twelve months have seen a number of changes in the employment law landscape across the Asia Pacific region. Workplace health and safety has remained a hot topic: in China, amendments to the Work Safety Law have seen harsher penalties given to companies and their executives to prevent work place accidents, while in Japan a seminal decision on power harassment resulted in a high value pay out to the family of a deceased employee. Collective bargaining rules have been revisited in both New Zealand and Singapore: the new Employment Relations Amendment Act 2014 provides new benefits to employers in respect of collective bargaining and strike action in New Zealand, while over in Singapore amendments to the Industrial Relations Act will allow managerial and executive level employees to be represented in the collective bargaining process for the first time. Does the duty of trust and confidence still exist in employment contracts? This question was considered by both the Australian and Singapore courts, with very different results. In Australia, the High Court ruled in the negative, while in Singapore, following Hong Kong's lead, the opposite conclusion was reached, illustrating just how different even seemingly similar common law jurisdictions can be. Hong Kong has also been a busy jurisdiction, with new paternity leave rules taking effect in 2015, and a number of new changes contemplated to the Employees' Compensation Ordinance to reflect wage and price increases. Since the 2014 edition of the Guide the primary legislation governing employment in Laos was replaced when the Law on the Amendment of Labour Law of Lao People's Democratic Republic (No 043/NA, December 24, 2013) came into effect. The new law omits many of the more onerous requirements that previously applied to disciplinary matters and termination of employment and makes a number of changes to the workplace health and safety regime and the laws regulating union relations. Herbert Smith Freehills' on-the-ground Employment, Pensions and Incentives team is ideally placed to assist you to navigate this complex and constantly evolving regional employment law landscape. We have employment law specialists in each of our offices in Hong Kong, Singapore, Japan, the Peoples' Republic of China, Korea, Thailand, Indonesia and Australia. We believe the geographical location, size, experience and expertise of our employment law team makes our firm unique in the Asia Pacific region. Our team members also have excellent relationships with local employment law firms in jurisdictions where we do not have a physical presence. These firms have assisted us in the preparation of this Guide and we express our thanks to them for their contributions. As always, please note that the information contained in this Guide is not legal advice. While the content of it is current to 1 February 2015 (except where otherwise stated), laws are of course subject to change. We therefore recommend that you obtain formal legal advice before relying on the information contained in this Guide. The contact details of our on-the-ground Asia Pacific Employment, Pensions and Incentives team members can be found at the back of this Guide. I encourage you to contact them (or your usual Herbert Smith Freehills contacts) with any questions you may have. I trust that you will find this Guide a useful first resource for answers to your questions about employment law in the Asia Pacific region. We look forward to assisting you with any employment issues which arise in these jurisdictions and to working with you to drive your business forward in the region. April 2015 Alison Brown Global Head of Employment, Pensions and Incentives T +44 20 7466 2427 alison.brown@hsf.com

02 ASIA PACIFIC EMPLOYMENT LAW GUIDE 2015 HERBERT SMITH FREEHILLS CONTENTS INTRODUCTION....................... 01 AUSTRALIA............................ 07 Minimum terms................... 07 Disciplinary procedures............ 09 Termination of employment......... 09 Discrimination and harassment..... 11 Whistle-blowing................... 12 Occupational health and safety..... 12 Data protection.................... 12 and contracting........................ 13 Industrial relations................. 13 BANGLADESH.......................... 15 Minimum terms.................... 15 Disciplinary procedures............. 17 Termination of employment......... 18 Discrimination and harassment...... 19 Whistle-blowing................... 20 Occupational health and safety..... 20 Data protection.................... 20 and contracting........................ 20 Industrial relations.................. 20 CAMBODIA............................ 22 Minimum terms.................... 22 Disciplinary procedures............. 25 Termination of employment......... 25 Discrimination and harassment...... 27 Whistle-blowing................... 28 Occupational health and safety..... 28 Data protection.................... 28 and contracting.................... 28 Industrial relations.................. 28 HONG KONG........................... 31 Minimum statutory terms........... 31 Disciplinary procedures............ 34 Termination of employment......... 34 Discrimination and harassment..... 36 Whistle-blowing................... 36 Occupational health and safety..... 36 Data protection.................... 36 and contracting.................... 37 Industrial relations................. 37 INDIA................................... 38 Minimum terms.................... 38 Disciplinary procedures asic......... 40 Termination of employment......... 40 Discrimination and harassment...... 41 Whistle-blowing.................... 41 Occupational health and safety...... 42 Data protection.................... 42 and contracting........................ 42 Industrial relations................. 42 INDONESIA............................. 44 Minimum terms.................... 44 Disciplinary procedures............. 47 Termination of employment......... 47 Discrimination and harassment...... 48 Whistle-blowing.................... 48

HERBERT SMITH FREEHILLS ASIA PACIFIC EMPLOYMENT LAW GUIDE 2015 03 Occupational health and safety...... 48 Data protection..................... 48 and contracting..................... 48 Industrial relations.................. 49 JAPAN.................................. 50 Minimum statutory terms........... 50 Disciplinary procedures............. 53 Termination of employment......... 53 Discrimination and harassment..... 55 Whistle-blowing................... 55 Occupational health and safety..... 55 Data protection.................... 55 and contracting........................ 56 Industrial relations................. 56 KOREA................................. 58 Minimum terms.................... 58 Disciplinary procedures............. 60 Termination of employment......... 60 Discrimination and harassment...... 62 Whistle-blowing.................... 62 Occupational health and safety...... 62 Data protection..................... 62 and contracting..................... 62 Industrial relations.................. 62 LAOS................................... 63 Minimum terms.................... 63 Disciplinary procedures............. 66 Termination of employment......... 66 Discrimination and harassment..... 67 Whistle-blowing................... 67 Occupational health and safety..... 67 Data protection.................... 68 and contracting.................... 68 Industrial relations................. 68 MACAU................................ 69 Minimum terms.................... 69 Disciplinary procedures............ 72 Termination of employment........ 72 Discrimination and harassment...... 74 Whistle-blowing.................... 74 Occupational health and safety...... 74 Data protection..................... 74 and contracting..................... 75 Industrial relations.................. 75 MALAYSIA............................. 76 Minimum terms.................... 76 Disciplinary procedures............ 78 Termination of employment......... 79 Discrimination and harassment..... 81 Whistle-blowing................... 81 Occupational health and safety..... 81 Data protection.................... 82 and contracting.................... 82 Industrial relations................. 82 MONGOLIA............................ 84 Minimum terms.................... 84 Disciplinary procedures............ 86 Termination of employment......... 87 Discrimination and harassment..... 88 Whistle-blowing................... 88 Occupational health and safety..... 88 Data protection.................... 88 and contracting.................... 89 Industrial relations................. 89

04 ASIA PACIFIC EMPLOYMENT LAW GUIDE 2015 HERBERT SMITH FREEHILLS MYANMAR............................. 90 Minimum terms.................... 90 Disciplinary procedures............ 93 Termination of employment......... 93 Discrimination and harassment..... 93 Whistle-blowing................... 93 Occupational health and safety..... 93 Data protection.................... 94 and contracting........................ 94 Industrial relations................. 94 NEW ZEALAND........................ 96 Minimum terms.................... 96 Disciplinary procedures............ 98 Termination of employment........ 99 Discrimination and harassment.... 100 Whistle-blowing.................. 101 Occupational health and safety.... 101 Data protection................... 102 and contracting....................... 102 Industrial relations................. 103 THE PHILIPPINES......................104 Minimum statutory terms.......... 104 Disciplinary procedures........... 107 Termination of employment........ 107 Discrimination and harassment.... 108 Whistle-blowing.................. 109 Occupational health and safety.... 109 Data protection................... 109 and contracting....................... 109 Industrial relations................ 110 PEOPLE S REPUBLIC OF CHINA........ 111 Minimum statutory terms.......... 111 Disciplinary procedures........... 115 Termination of employment........ 115 Discrimination and harassment.... 117 Whistle-blowing.................. 117 Occupational health and safety.... 117 Data protection................... 117 and contracting....................... 117 Industrial relations................ 118 SINGAPORE...........................120 Disciplinary procedures...........123 Termination of employment........123 Discrimination and harassment.... 125 Whistle-blowing..................125 Occupational health and safety.... 125 Data protection...................125 and contracting.......................125 Industrial relations................126 SRI LANKA............................127 Minimum terms...................127 Disciplinary procedures...........130 Termination of employment........130 Discrimination and harassment.... 131 Whistle-blowing.................. 132 Occupational health and safety.... 132 Data protection................... 132 and contracting....................... 132 Industrial relations................ 132

HERBERT SMITH FREEHILLS ASIA PACIFIC EMPLOYMENT LAW GUIDE 2015 05 TAIWAN...............................133 Minimum terms...................133 Disciplinary procedures...........136 Termination of employment........136 Discrimination and harassment....138 Whistle-blowing..................138 Occupational health and safety....138 Data protection...................138 and contracting...................139 Industrial relations................139 THAILAND............................140 Minimum terms................... 140 Disciplinary procedures........... 142 Termination of employment........ 142 Discrimination and harassment.... 143 Whistle-blowing.................. 143 Occupational health and safety.... 144 Data protection...................144 and contracting...................144 Industrial relations................144 VIETNAM............................. 145 Minimum terms................... 145 Disciplinary procedures........... 148 Termination of employment........ 148 Discrimination and harassment....150 Whistle-blowing..................150 Occupational health and safety.... 150 Data protection................... 151 and contracting................... 151 Industrial relations................ 151 EXTERNAL CONTRIBUTORS..........154 HERBERT SMITH FREEHILLS CONTACTS...........................155

EXTERNAL CONTRIBUTORS 154 ASIA PACIFIC EMPLOYMENT LAW GUIDE 2015 EXTERNAL CONTRIBUTORS HERBERT SMITH FREEHILLS COUNTRY BANGLADESH CAMBODIA INDIA KOREA LAOS MACAU MALAYSIA MONGOLIA MYANMAR NEW ZEALAND PHILIPPINES SINGAPORE SRI LANKA TAIWAN VIETNAM CONTACT Syed Ishtiaq Ahmed & Associates Afzal Syed afzal@siaalaw.com KCP Cambodia Jay Cohen jay.cohen@kcpartnership.com Kochhar & Ko Manishi Pathak manishi.pathak@kochhar.com Lee & Ko Paul Cho paul.cho@leeko.com DFDL Rupert Haw rupert.haw@dfdl.com JNV Legal Pedro Branco pedro.branco@jnvlegal.com Joanna Rodrigues jrodrigues@jnvlegal.com Skrine Siva Kumar Kanagasabai skk@skrine.com MahoneyLiotta LLP Daniel Mahoney daniel.mahoney@mlmongolia.com Herbert Smith Freehills with assistance from Myanmar Legal Services Paul Cruise paul.cruise@hsf.com Bell Gully Grace Stacy-Jacobs grace.stacey-jacobs@bellgully.com Tim Clarke tim.clarke@bellgully.com SyCip Salazar Hernandez & Gatmaitan Marianne M. Miguel mmmiguel@syciplaw.com Prolegis LLC Ban Leong Oo banleong.oo@pro-legis.com Varners Lakshika Siriwardana lakshi@varners.lk Nimal Weeraratne weera@varners.lk Lee and Li Joyce Chen joycechen@leeandli.com Ken-Ying Tseng kenying@leeandli.com Frasers Law Company Phung Thi Than Thao thao.phung@frasersvn.com

HERBERT SMITH FREEHILLS ASIA PACIFIC EMPLOYMENT LAW GUIDE 2015 155 HERBERT SMITH FREEHILLS CONTACTS CONTACT GLOBAL HEAD OF EMPLOYMENT, PENSIONS AND INCENTIVES AUSTRALIA Alison Brown T +44 20 7466 2427 M +44 778 5254950 alison.brown@hsf.com Steve Smith, Brisbane T +61 7 3258 6549 M +61 417 134 499 steve.smith@hsf.com Miles Bastick Regional Practice Group Head (EPI) Australia, Sydney T +61 2 9225 5722 M +61 416 225 755 miles.bastick@hsf.com Michael Gonski, Sydney T +61 2 9225 5083 M +61 409 987 121 michael.gonski@hsf.com CONTACT Bronwyn Sullivan Senior Associate, Sydney T +61 2 9225 5052 M +61 428 231 290 bronwyn.sullivan@hsf.com Jess Toop Senior Associate, Melbourne T +61 3 9288 1637 M +61 408 011 420 jess.toop@hsf.com Clarissa Robbins Senior Associate, Brisbane T +61 7 3258 6415 M +61 417 395 370 clarissa.robbins@hsf.com Rachael Wong Solicitor, Melbourne T +61 3 9288 1234 D +61 3 9288 1453 rachael.wong@hsf.com HERBERT SMITH FREEHILLS CONTACTS Celia Yuen Executive Counsel, Melbourne T +61 3 9288 1238 M +61 400 517 832 celia.yuen@hsf.com Helen Beech Senior Associate, Perth T +61 8 9211 7777 D +61 8 9211 7655 helen.beech@hsf.com

HERBERT SMITH FREEHILLS CONTACTS 156 ASIA PACIFIC EMPLOYMENT LAW GUIDE 2015 HONG KONG CONTACT Gareth Thomas T +852 2101 4025 M +852 9773 5042 gareth.thomas@hsf.com Susan Leung Consultant T +852 2101 4136 M +852 6620 7532 susan.leung@hsf.com Gillian McKenzie Associate T +852 2101 4222 M +852 9195 6606 gillian.mckenzie@hsf.com JAPAN CONTACT Peter Godwin Managing T +81 3 5412 5444 M +81 90 5502 4388 peter.godwin@hsf.com Georgina Stevens Senior Associate T +81 3 5412 5412 D +81 3 5412 5482 georgina.stevens@hsf.com Florence Cheung Senior Associate, Gaikokuho Jimu Bengoshi T +81 3 5412 5412 D +81 3 5412 5416 florence.cheung@hsf.com HERBERT SMITH FREEHILLS David Smail Associate T +852 2845 6639 D +852 2101 4632 david.smail@hsf.com KOREA Lewis McDonald Managing T +82 2 6321 5711 M +82 10 3609 0320 lewis.mcdonald@hsf.com INDONESIA David Dawborn T +62 21 5790 0571 M +62 811 189 0367 david.dawborn@hbtlaw.com James Doe T +82 2 6321 5700 M +82 10 7191 4698 james.doe@hsf.com Santi Darmawan Managing, Hiswara Bunjamin & Tandjung T +62 21 574 4010 M +62 811 949 279 santi.darmawan@hbtlaw.com Narendra Adiyasa Senior Associate, Hiswara Bunjamin & Tandjung T +62 21 574 4010 M +62 811 1006 719 narendra.adiyasa@hbtlaw.com

HERBERT SMITH FREEHILLS ASIA PACIFIC EMPLOYMENT LAW GUIDE 2015 157 PRC CONTACT Karen Ip, Beijing T +86 10 6535 5135 M +86 138 1071 0056 karen.ip@hsf.com Nanda Lau, Shanghai T +86 21 2322 2117 M +86 136 81917366 nanda.lau@hsf.com Doreen Yan Associate, Beijing T +86 10 6535 5129 M +86 136 7116 8963 doreen.yan@hsf.com THAILAND CONTACT Chinnawat Thongpakdee T +66 2 657 3829 M +66 81 833 4700 chinnawat.thongpakdee@hsf.com Janaki Tampi Associate (Admitted in Australia) T + 66 2 657 3888 D +66 2 657 3835 janaki.tampi@hsf.com Chotika Voravongsakul Junior Associate T +66 2 657 3888 D +66 2 657 3831 chotika.voravongsakul@hsf.com HERBERT SMITH FREEHILLS CONTACTS Jasmine Chen Associate, Shanghai T +86 21 2322 2165 M +86 137 6114 3505 jasmine.chen@hsf.com UK Andrew Taggart T +44 20 7466 2434 M +44 791 7461269 andrew.taggart@hsf.com SINGAPORE Fatim Jumabhoy Of Counsel T +65 6868 9822 M +65 9770 0320 fatim.jumabhoy@hsf.com Daniel Schaffer T +44 20 7466 2003 M +44 754 5513403 daniel.schaffer@hsf.com Sarah Yazid Associate T +65 6868 9829 M +65 8339 5895 sarah.yazid@hsf.com Paul Ellerman T +44 20 7466 2728 M +44 780 9200186 paul.ellerman@hsf.com Tara Grossman Senior Associate T +44 20 7374 8000 D +44 20 7466 2797 tara.grossman@hsf.com

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