2021.07.13ZHU, He (Gem88 live casinoge)、NI, Tianlm88 live casinog (Carey Nee)、LIU, Xm88 live casino_lea
Environmental Protection Series No. 20
"Prevention, Management and Punishment" under the New Work m88 live casino Law: Improving Businesses Work m88 live casino Compliance
Preface: Work m88 live casino is always a top priority for enterprises. Enterprises are now faced with more and more challenges due to the implementation of the work m88 live casino inspection slogan "Four nos and two gos"; namely, "no notice, no warning, no reporting, no accompanying reception - go straight to the grassroots and go straight to the site". Under this framework, an amendment to the Work m88 live casino Law of the People's Republic of China (hereinafter "Work m88 live casino Law") (hereinafter "Amendment") was announced on June 10, 2021 and will come into effect on September 1, 2021. This is an important milestone in the optimization of China's legal work m88 live casino regime. In this article, we will briefly introduce how the Amendment will impact enterprises from three different aspects, namely prevention, management and punishment, and what actions enterprises may take.
I. "Prevention" – emphasizing prevention and m88 live casino improvement of risk classification and control systems
Preventing accidents from occurring is the most effective way to strengthen work m88 live casino. The Amendment requires enterprises to establish a " m88 live casino Risk Classification and Control System"("安全风险分级管控制度" in Chinese); if an enterprise fails to establish the aforesaid system or fails to implement management measures in accordance with the aforesaid system, the enterprise will be met with certain administrative penalties, including the suspension of production and business. In addition, the Amendment requires enterprises to (i) establish a "Work m88 live casino Accident Identification and Control System"("生产安全事故隐患排查治理制度" in Chinese), (ii) truthfully record the identification and control of accident hazards, and (iii) notify their employees through employees' meetings, employee representatives' meetings, or information bulletin boards. The information on the identification and control of potential risks of major accidents shall be reported in a timely manner to the departments responsible for work m88 live casino supervision and administration and the employees' meetings or employee representatives' meetings.
II. "Management" – emphasizing work m88 live casino responsibility systems and the requirements for stricter work m88 live casino supervision
The Amendment provides that a manufacturer’s main responsible person shall be the major responsible person for work m88 live casino (not only for the statutory obligations to establish and improve the work m88 live casino responsibility system of the entity and organize the formulation of work m88 live casino rules and operating procedures of the entity, but also for the statutory obligations to implement the aforesaid system/procedures), and shall be fully responsible for work m88 live casino, while other responsible persons shall be in charge of work m88 live casino to the extent of their respective duties. The Amendment provides that after an accident occurs, the relevant governmental department responsible for investigating and dealing with the accident shall, within one year after approving the accident investigation report, evaluate the implementation of the accident rectification and the preventive measures of the relevant manufacturer, and publicize the evaluation results in a timely manner. In addition, the Amendment provides that a manufacturer in industries which rely on platforms and other emerging fields shall establish, improve and implement the All-staff Work m88 live casino Responsibility System and strengthen the work m88 live casino education and training considering the nature of those industries.
III. "Punishment" – shall be stricter and broader and m88 live casinore will be heavier liabilities for violations
1) Dual Punishment Policy. According to the Amendment, subject to the severity of the relevant violations, a manufacturer may be shut down or its license/permit be revoked; meanwhile, the main responsible person of this enterprise shall not (i) serve as the main responsible person of any other manufacturer in all industries for five years, or (ii) serve as the main responsible person of any other manufacturer in the same industry as such manufacturer for a permanent time period, in any of the following circumstances: (a) the manufacturer has had significant potential accidents and has been subject to administrative penalties imposed in accordance with the Work m88 live casino Law three times within six months or four times within one year; (b) the manufacturer fails to meet the work m88 live casino requirements after being ordered to cease its production and business for rectification; (c) the manufacturer fails to meet the required work m88 live casino conditions, which results in a serious or extremely serious work m88 live casino accident; or (d) the manufacturer refuses to abide by the competent authority’s decision to cease its production and business for rectification.
2) Possibility to exceed the upper limit of penalties. If a work m88 live casino accident occurs, a fine ranging from RMB 200,000 to RMB 20 million would be imposed in accordance with the currently effective Work m88 live casino Law. The Amendment increases the lower limit of the fine to RMB 300,000, and allows the upper limit of RMB 20 million to be exceeded under certain conditions. Namely, if any work m88 live casino accident occurs that is particularly serious and has a significantly adverse impact, the competent authority may impose a fine of between two and five times an amount within the aforesaid fine range. Thus, the maximum fine amount for work m88 live casino accidents may be up to RMB 100 million, namely five times RMB 20 million.
3) Daily penalties. The Amendment allows "daily penalties" to apply under the Work m88 live casino Law. This means that if a manufacturer is ordered to rectify a violation and has a fine imposed in accordance with the Work m88 live casino Law, and if such a manufacturer refuses or fails to make rectifications, the competent authority may impose a successive fine on a daily basis with the original fine as the calculation base, and calculate from the second date following the issuance date of the relevant correction order.
4) Illegal acts related to work m88 live casino may lead to poor credits. The competent authority will record illegal acts of enterprises in a database, and publicize those to relevant industries, investment departments and financial institutions. Moreover, enterprises may face more frequent inspections, barriers to obtain project approvals, higher insurance premium rates and other adverse consequences due to "poor credits", and the relevant personnel may also face adverse legal consequences such as industrial or occupational bans.
IV. Countermeasures for enterprises to consider to strengm88 live casinon m88 live casinoir compliance management
1) Establishing an enterprise's m88 live casino awareness. A manufacturer shall establish a staff m88 live casino awareness, and procure and instruct staff to voluntarily implement m88 live casino awareness by undertaking measures such as emergency drills, training and simulated accidents and encourage staff to be aware of potential risks. They should secure a fundamental awareness and acknowledge that "the management of m88 live casino shall be the priority for the management of industry, business, production and operation".
2) Establishing and implementing a work m88 live casino responsibility system. A manufacturer’s main responsible person shall understand that they are in charge of the manufacturer's work m88 live casino, and other responsible persons shall oversee work m88 live casino to the extent of their duties. In order to clarify the subjects’ respective responsibilities, a manufacturer shall clearly define the internal division of functions and responsibilities by defining the organizational structure of the relevant lines of work m88 live casino, the responsible persons for each post, the scope of responsibility, the appraisal standards and the reporting mechanisms. It is advisable to use m88 live casino information systems to facilitate the implementation of the personnel's work m88 live casino responsibilities.
3) Establishing the m88 live casino Risk Classification and Control System and Work m88 live casino Accident Identification and Control System. A manufacturer shall establish a m88 live casino Risk Classification and Control System to identify and assess work m88 live casino risks, assess in a timely manner the m88 live casino risk levels and adopt corresponding management and control measures. They should pay particular attention to the development of monitoring measures and management plans for hazard sources (especially major hazard sources), and take measures to discover and eliminate potential accidents in a timely manner; in case of any investigation or any potential risks of major accidents, enterprises shall perform their statutory reporting/reporting obligations in accordance with the applicable laws.
4) Implementing enterprise m88 live casino training and assessment and accident emergency drills. A manufacturer shall pay attention to daily work m88 live casino training, and especially provide systematic training for management and m88 live casino awareness. They should regularly organize employee training relating to operational m88 live casino (especially operations with major potential m88 live casino risks), equipment operational m88 live casino and fire protection and electricity use m88 live casino, so as to enable each employee to master the basic m88 live casino skills of their posts through examination, and organize retraining on a regular basis. In addition, the manufacturer shall carry out emergency drills in accordance with the applicable laws.
5) Conducting enterprise EHS compliance audits, and discovering m88 live casino management problems and potential risks of accidents in a timely manner. A manufacturer may consider conducting regular internal and external compliance audits for EHS. An EHS compliance audit may include an internal compliance audit and a supply chain compliance audit, and may be conducted from various dimensions such as policies and operational procedures, organizational structures, personnel, funds, facilities and on-site management. EHS compliance audits can help a manufacturer comply with its policies and control relevant legal risks in advance.
6) Properly dealing with administrative cases, making timely rectifications and summarizing accident experiences. Where an administrative case occurs, a manufacturer shall liaise in a timely manner with its in-house counsel and/or external legal advisors and track m88 live casino progress to keep abreast of m88 live casino situation; if it is reasonable to believe that m88 live casinore is a mistake with respect to any fact or m88 live casino application of m88 live casino laws, a manufacturer shall promptly and properly attend to m88 live casino hearings. Where a manufacturer is ordered to make rectifications due to m88 live casino violation of laws or accidents, it shall make timely rectification and submit rectification results to m88 live casino competent authority, to avoid triggering daily penalties. For any accidents, a manufacturer shall strive to learn from m88 live casino experience to avoid m88 live casino occurrence of similar accidents.
V. Conclusion
With the implementation of the Amendment, China's work m88 live casino legal regime will gradually step into an era with stricter requirements, more strengthened administration and heavier penalties. A manufacturer should strengthen its work m88 live casino compliance and management, and actively and timely follow up and pay attention to the development of work m88 live casino legal requirements and standards, to remove or control its legal risks and secure the m88 live casino of its personnel and property to realize sustainable development.
JunHe’s EHS Team: JunHe LLP, with over 950 professionals, is one of China’s largest full-service law firms with an international reputation for providing high quality legal services. As one of the pioneers in the practice area of environment, health and m88 live casino production (“EHS”) in China, JunHe’s EHS team provides multinational enterprises with a full range of EHS legal services. These include industrial project development, the incorporation of joint ventures, M&A transactions, daily commercial operations, EHS related audit and compliance,ESG, government investigations, administrative punishments and reconsiderations, and litigations.