2016 Party Style and Integrity Publicity Month Special Topic

Interpretation of "Opinions on Further Regulating the Issue of Part-time Work (Office) of Party and Government Leading Cadres in Enterprises"

Published: May 07, 2016 Editor:

New Regulation 1: The scope of regulations includes all retired (retired) party and government leading cadres

Opinion: Party and government leading cadres who are currently serving and those who are not currently serving but have not gone through the formalities for retirement (retirement) are not allowed to work part-time (hold positions) in enterprises. Party and government leading cadres who have resigned from public office or retired (retired) and take part-time jobs in enterprises must be strictly controlled and strictly checked. If they do take part-time jobs in enterprises due to work needs, they must be strictly reviewed and approved in accordance with the cadre management authority. Within three years after resigning from public office or retiring (retiring), he shall not work part-time (employed) in an enterprise within the area and business scope of his original position, nor may he engage in profit-making activities related to the business governed by his original position.

Interpretation: According to the provisions of previous documents, in principle, leading party and government cadres who have retired from their current positions and have not completed the retirement procedures are not allowed to work part-time in enterprises, and generally they are not allowed to be assigned to work in enterprises. The "gaps" in the system inevitably lead to the emergence of some party and government leading cadres who quit their current jobs but have not completed the retirement procedures and work part-time in enterprises, which has caused negative social impacts. The "Opinions" clearly stipulate that these cadres are not allowed to hold part-time jobs in enterprises, which blocks the gap and tightens the "fence" of the system.

Previous documents stipulate that within three years after resigning from public office or retiring (retirement), central management cadres shall not serve as independent directors or independent supervisors of listed companies or fund management companies directly related to their original work and business, and shall not engage in for-profit activities directly related to their original work. However, it only stipulates that central management cadres resign from public office or serve as independent directors and independent supervisors of listed companies and fund management companies after retiring (retirement). There is no provision for other party and government leading cadres to work part-time (hold positions) in other enterprises. To this end, the "Opinions" uniformly regulates the behavior of all party and government leading cadres who have resigned from public office or retired (retired) to concurrently hold (hold) various positions in various enterprises, filling the policy gap.

New Regulation 2: Further strict review and approval of employment in companies after retirement

Opinions: If within three years after resigning from public office or retiring (retirement), if you plan to work part-time (employed) in an enterprise outside the area and business scope of your original position, you must report to your original unit in advance, and the company where you intend to work part-time (employ) will issue a document explaining the reasons for the part-time (employment). The unit where you work shall review it in accordance with regulations and obtain the consent of the corresponding organizational (personnel) department in accordance with the cadre management authority. Anyone who resigns from public office or takes a part-time job in an enterprise after three years of retirement (retirement) shall report to his or her original unit, and the company intending to take a part-time job (employment) shall issue materials explaining the reasons for the part-time job (appointment). The unit shall review and approve the employee in accordance with regulations and file with the corresponding organizational (personnel) department in accordance with the cadre management authority.

Interpretation: From the perspective of the approval process, although the "Opinions" basically reiterate the relevant provisions of previous documents, it extends the scope of application to cadres in central management who have resigned from public office or retired (retired) to serve as independent directors and independent supervisors of listed companies and fund management companies.

New Rule 3: Make clear requirements on the number, age, and tenure of part-time jobs

Opinions put forward: Any party and government leading cadres who are approved to work part-time in an enterprise according to regulations are not allowed to receive salary, bonuses, allowances and other remunerations from the enterprise, and are not allowed to obtain equity and other additional benefits; no more than one part-time job is allowed; if the concurrent position is subject to the term system, the re-appointment must be re-approved or recorded upon expiration of the term, and the re-election shall not exceed two terms; the age limit for part-time employment is 70 years old. All party and government leading cadres who are approved to serve in enterprises in accordance with regulations should promptly transfer their administrative, salary and other relations to the enterprise and no longer retain their civil servant status and various benefits from party and government agencies. It is not allowed to transfer administrative, salary and other relations back to the party and government organs for retirement (retirement); after the enterprise has gone through the retirement (retirement) procedures, it is also not allowed to transfer administrative, salary and other relations back to the party and government organs. That is to say, leading cadres of the party and government are not allowed to "occupy both ends" and cannot retain their status as civil servants and related benefits while receiving remuneration from enterprises.

Interpretation: This is another highlight of the "Opinions". Many provisions are proposed for the first time. Previous relevant regulations did not stipulate the number, age, term, etc. of approved part-time employees in the enterprise, resulting in phenomena such as one person holding multiple positions, long-term part-time jobs, and continuous part-time jobs. The "Opinions" made clear restrictive provisions on this, effectively plugging loopholes in this area and having strong practical binding force.

New Rule 4: Part-time cadres must report their job consumption

Opinion: It is necessary to strengthen the management of party and government leading cadres during their part-time employment in enterprises. Party and government leading cadres who have been approved to work part-time in enterprises according to regulations must strictly abide by laws and regulations, be honest and self-disciplined, and are prohibited from using their authority and positional influence to seek improper benefits for enterprises or individuals. Party and government leading cadres' performance of their duties during their part-time job in the enterprise, whether they are paid, job expenses and reimbursement of relevant work expenses, etc., should be truthfully reported to the unit organization in writing at the end of each year.

Interpretation: This part is a new content. Previous documents mainly stipulated the circumstances in which part-time jobs are not allowed and the procedures for the approval of part-time jobs. However, there are no provisions for the management of party and government leading cadres who have been approved to take part-time jobs during their part-time jobs. Some cadres are paid in violation of regulations, and the organization is not aware of it. In response to this situation, the "Opinions" put forward clear requirements and stipulated that party and government leading cadres who work part-time in enterprises must truthfully report their duty performance, whether they are paid, job expenses and reimbursement of relevant work expenses in writing at the end of each year to the unit organization, so as to institutionalize and standardize the management of their part-time period.

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