36 ASIAN LEGAL BUSINESS CHINA • 亚洲法律杂志-中国版 SEPTEMBER 2024 in the U.S., Hong Kong SAR, Singapore, India, and Africa. In practice, He Xiaochen explains, her team has encountered numerous cases involving the coordination of domestic and foreign labour laws. “For example, we’ve assisted several stateowned enterprises (SOEs) with revising management systems for dispatching Chinese employees abroad, handling disputes, and providing legal training, all while navigating both Chinese and foreign labour laws.” In another case, her team assisted a financial institution in resolving the termination of an employee who held dual roles in both the company’s Chinese headquarters and an overseas subsidiary. “We worked with overseas lawyers to provide the client with legal advice on handling the employment relationship and applicable laws,” she says. Cheng’s team in Lantai has encountered similar challenges. In one instance, a SOE dispatched a senior executive to Singapore, and upon the executive’s departure, the company required an exit audit under China’s state-owned asset regulations. “However, the employee, governed by Singaporean labour laws, refused to comply with these requirements, highlighting how certain personnel management rules under China’s state-owned asset supervision face challenges abroad.” In another case, Lantai helped a SOE exit a construction project in Africa, only to discover that some African countries have strict labour protection and exit policies. “In some cases, companies may be required to complete employee resettlement before they can withdraw capital, which is quite different from the norms in China,” Cheng notes. A growing number of Chinese tech companies setting up overseas R&D centres also face compliance issues, particularly related to non-compete agreements. “Many tech companies are establishing centres in Southeast Asia to leverage talent cost-effectiveness. But laws vary widely—for example, noncompete clauses aren’t enforceable in Malaysia, though they are allowed under Chinese law. How should companies protect their interests while complying with both jurisdictions? There is a significant demand for these services.” says Cheng. “Challenges are everywhere and often diverse, and none are easy to resolve,” she admits. Qin adds that as services become more sophisticated, lawyers encounter more complexity in overseas labour law, influenced by historical and cultural factors. “For instance, after the 2008 revision of France’s Labour Code, it contained over 9,900 articles, impacting labour laws across Continental Europe and former French colonies in Africa. Angolan labour law, influenced by Portugal, is similarly detailed—such as specifying overtime pay for shifts starting after 8 p.m., which are classified as night shifts.” As a result, Qin explains, lawyers now play a key role in providing predeparture training for expatriates, covering not just legal issues but also religion, customs, culture, and social taboos in the host country. DATA ISSUES TAKE CENTRE STAGE Chinese companies expanding abroad face significant challenges in employee data protection. Yan notes, “As countries continue to tighten their legislative frameworks, the protection of personal information for overseas employees has become a key compliance issue for Chinese companies.” He Xiaochen underscores this point: “According to statistics from the UN Trade and Development, 137 countries worldwide have enacted laws to protect data and privacy. Chinese companies must not only comply with China’s Personal Information Protection Law and regulations on cross-border data transfer, but also with the data protection laws of the countries where they operate. Data compliance is a priority for most companies.” In practice, Chinese firms employ various compliance strategies. Yan explains, “Companies conduct security assessments for data transfers abroad, implement internal management policies and procedures for classified handling of personal information, and utilise security measures like encryption and de-identification.” He adds that when transferring sensitive personal information across borders, companies must obtain the data subject’s consent. Cheng highlights that a company’s approach to employee data collection reflects its management culture. Practices common in China may face resistance overseas. “For example, while various attendance tracking methods are common in China, collecting personal movement data from employees can be difficult abroad. Similarly, the use of employee monitoring tools, such as software that tracks work activity or seat sensors that monitor desk occupancy, often can’t be applied in foreign markets.” Qin cautions that Chinese companies have already incurred fines in the EU for data violations, and this enforcement could soon extend to employee data. He LABOUR LAW “Clients expect us to be involved throughout the entire process. Additionally, they demand a deep understanding of local laws, so that lawyers can offer explanations and help clients make timely decisions. Clients no longer see lawyers as mere connectors; they want us to be interpreters of both legal and cultural differences.” — Cheng Yang, Lantai Partners “客户需要中国律师全程参与，此外对于中国律师对当地法律的了解 要求较高，要熟悉高频问题，方便给客户做解释、协助客户及时决策。 客户不再希望律师只做个链接者，而是做文化、法律差异的翻译者。” — 程阳，兰台律师事务所
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