1. CCIC – APRIL 22 ND 2014 LUIGI ZUNARELLI Workplace Liability

2. Different Level of Liability Civil – Compensation that the employer/social fund pay to the employee for a certain accident incurred. Administrative – Fine or penalties issued by Chinese administrative authority due to a misbehavior of the employer Criminal – Personal liability of company directors/legal representative or senior employees

3. Italian Legal Framework Chinese Legal Framework Working injury – any damage caused by an injury related to the working activity shall be compensated by the company and social fund unless intentional or due to a criminal action. Civil tort liability – any damage caused by a person base on an unlawful action Civil Liability Fault of employer – damage incurred due to negligence of the employer or unknown reason. Fault of employee – damage incurred due to negligence of the employee. Unpredictable and absolutely abnormal action – damage incurred due to an action of the employee that couldn’t be predicted or controlled in anyway by the employer.

4. What shall be considered as working injury? What we need to provide in company regulation work-related accident at the workplace during the working time; Injured in an accident when making work-related preparations or conducting work-related Injured due to work or the whereabouts thereof is unknown due to an accident; Injured in a traffic accident on the way to work from home or back home from work; Define procedure for approval/declaration of business trip; Define relationship with freelance/partners or part time workers; surveillance and accreditation system for visitors; Define duration and appointment for work related activity out of workplace; Define area and tools related to the working activity. Company regulation

5. Administrative Liability Personal liability of the directors20,000 - 200,000 RMB + displacement + 5 year interdiction. Minors breach of law More relevant breach of safety law Suspension of the activity + fine no more than 20.000 RMB Suspension of the activity +fine 20.000 – 100.000 RMB In case a contractor appointed fails to respect safety requirement Termination of the agreement + confiscate the illegal profit + fine up to 5 times of illegal profit + joint and several liability for any damage eventually incurred. In case of accident the management body doesn’t cooperate or hide himself from authority Displacement + detention up to 15 days

6. Criminal Liability Legal Framework General Liability “Whoever violates the safety provisions in the course of production and operations, thereby causing an accident” Direct Accident Liability “Whoever forces another person to work under hazardous conditions in violation of rules” Employer Liability “Where the facilities for safety production or the conditions for safety production are not in conformity with State requirements, the person directly in charge and the other persons directly responsible shall be sentenced”

7. Company regulation Administrative and criminal liability are based on the breach of law or company regulation so it is necessary to state out rule and regulation to be respected by employees to avoid criminal and administrative liability Define procedure for use and maintenance of machinery; Define training duties for senior officers toward new employees; Define and apply penalties for breach of safety regulation; Define duties and responsibilities for senior managers employees Define a urgent protocol in case of emergency Organize training and seminars to inform employees about company regulation

8. Takeaways “However whatever happen I’m always responsible” NOT TRUE! Importance of company organization, guidelines or employee handbook to prevent liability. “I’m not the legal representative so I don’t care” NOT TRUE!

9. MilanVia U. Visconti di Modrone 6giovanni.lovisetti@studiozunarelli.com Shanghai1701 Beijing rd, Jing An Distr.luigi.zunarelli@studiozunarelli.com BolognaVia del Monte, 10veronica.nannini@studiozunarelli.com