Group 14 - K57CLC4

Part 1
Question 1
● Potential reasons why employees are deciding to unionize:
- Labor unions give workers the power to negotiate for more favorable working conditions and other benefits
through collective bargaining
- Unions can improve their working life with better working conditions, higher wages/salary, ……
- In the context of COVID 19, without unions, many workers are forced to work without personal protective
equipment or access to paid leave or premium pay. And when nonunion workers have advocated for health and
safety protections or wage increases, they have often been retaliated against or even fired for doing so. The lack
of these basic protections has led to thousands of essential workers becoming infected with the coronavirus, and
many are dying as a result

● What are the mandatory bargaining subjects?

- Mandatory subjects are those topics required by law and the National Labor Relations Board (NLRB). Those
subjects include items like wages, overtime, bonuses, grievance procedures, safety and work practices, and
seniority, as well as procedures for discharge, layoff, recall, or discipline.

● Other than wages and hours, what are the other 5 terms and conditions of employment?
- Job responsibilities
- Working hour
- Dress code
- Time off the job
- Starting salary

● What are permissive bargaining subjects that will be negotiated? List at least 3.
- Permissive, voluntary or non-mandatory subjects of bargaining are subjects not directly related to the work. That
is, these subjects fall outside of wages, hours and working conditions and generally are matters that relate to the
nature and direction of the business/ industry or relate to the internal union affairs. The list can be infinitely long.
- Examples of permissive or voluntary subjects include, but are not limited to:
+ Negotiation ground rules
+ Supervisor’s conditions of employment
+ Interest arbitration
+ Settlement of an unfair labor practice (ULP) charge
+ Pensions for retired members • Use of the union label/ flag
+ Internal union matters (e.g., how union stewards and officers are elected, union dues, officer structure,
union by-laws, etc.)
+ Recognition clause defining the bargaining unit
+ Either party’s bargaining team make-up
+ Make-up of the employer’s board of directors or trustees
+ Demanding that a union settle arbitrable grievances filed under the previous contract
Question 2:

● Mid-level management team

Authoritative Persuasive Collaborative Transformational

management style management style management style management style

Difference between - Managers dictate - Managers use their - In this style, - Managers focus
management styles exactly what they persuasive skills to management creates their efforts on
require their convince employees an open forum for pushing their staff to
subordinates to do that the unilateral ideas to be discussed ever greater
and punish those who decisions that the extensively before accomplishments
do not comply. manager implements making decisions through
are for the good of based on majority encouragement,
- Employees are the team, department, rule. Staff is pushing them past
expected to follow or organization. empowered to take their comfort zones
orders, not question ownership of regularly, and
the authority of - Rather than simply outcomes, which can consistently
management, and ordering employees lead to increased motivating their
perform their tasks to perform tasks, engagement, teams to raise their
the same way each managers employing innovation and bar for achievements.
time. this style would creativity.
invite questions and - Managers work
would explain the alongside their
decision-making employees, inspiring
process and rationale their team to ever
behind policies. This greater efforts by
can help employees demonstrating their
feel as though they own work ethic.
are a more trusted
and valued part of the
staff and are involved
in key business
decisions, leading to
lower levels of
resentment or tension
between management
and staff.

Why choose this - Is able to quickly - Has great - Be able to make - Encourages creative
 supervisor? make decisions. persuasion skills. staff feel trusted, thinking is
valued and heard by encouraged
- Is able to create - Can establish a all levels of their
clearly defined higher level of trust management team. - Is problem-solving
objectives and between himself and oriented.
expectations. employees, and
employees will
- Has a strong accept top-down
personality, is willing decisions more
to make tough easily.
decisions and has
power in his words.

How does each - Is the person who - Is the person - Is the neutral person - Is the person who
supervisor stands firmly on the responsible for for both parties, who stands with the
contribute to ground of the convincing the union can integrate their employees and can
conflict resolution enterprise. party to accept the ideas and aspirations persuade the other
strategies? set-out options. into one. supervisors in case
- Prevents the other the conflict escalates
supervisors from quickly.
making decisions
which are considered
disadvantageous to
the company.

Question 3:

● Explain the two collective bargaining strategies.

The aim of collective bargaining (at all times) should be to ensure the performance of work in your business properly
contributes to productive, stable, and sustainable commercial operations. This is about doing better and improving the
operation of your business.

Collective bargaining should be approached as a continuous process based on a foundation of good workplace relations
and effective communication, not as a periodic, isolated or stand alone event.

“Strategy” means no more than considering in advance how you will approach collective bargaining to get the most out
of the bargaining process.

STRATEGY 1: HARD NEGOTIATIONS

Definition: viewing negotiation as a battle of wills. Hard bargaining emphasizes results. Haggling in a market is the
stereotypical image of hard bargaining.
STRATEGY 2: SOFT NEGOTIATIONS
Definition: In contrast, the soft approach focuses on preserving the relationship ahead of results. While both hard and
soft negotiation styles focus on positions, the soft approach is the opposite of the hard approach in many regards.

● Identify which one you recommend your team to use:

We choose the 2nd strategy because the outcome of a negotiation is determined as much by the negotiators'
strategy as by the results they hope to achieve.
- If we use the Soft approach to collective bargaining, we treat the participants (here are the employees/union) as
friends, rather than as adversaries.
- We use the Soft approach because we choose to trust our employees rather than to be suspicious about the others
- We don’t want the two sides to be confrontational towards each others’ wills.
- We want the two sides to be open-minded and to head for the satisfying results from both sides.
- Company and Union are “win-win” relationship

Question 4:
Evaluate conflict resolution strategies if labor management is not reached by your team and the employee
representatives.

Accommodati Avoiding Compromising Collaborating Competing

ng

Should it be Depends No Yes Yes No

applied?

Reasonings This method of This method Both parties Like the Competing is an
conflict involves simply willingly forfeit compromising uncooperative,
resolution, also ignoring the fact some of their method, overly assertive
known as that there may be a conditions in the collaboration method used by
smoothing, conflict. People interest of reaching involves people who insist
involves one tend to avoid an agreement. This working with on winning the
party conflict when they can be a quick way the other party dispute at all
acquiescing, do not wish to to resolve a to find a costs. This method
giving the engage in it. conflict without it mutually is not often
opposing party Avoiding allows becoming a bigger agreeable identified as
exactly what it them to ignore that issue. Compromise solution to a bringing
needs to there is a problem. can also be used as problem. satisfactory
resolve the There are a temporary resolutions, as it
problem. situations in which method to avoid doesn’t allow for
If the avoiding conflict conflict until the collaborative
suggestion of can be an parties involved problem-solving.
the other party appropriate can implement a
is reasonable, it response, such as more permanent
should be when there is no solution.
agreed. clear solution or a
 Otherwise, frustrated party It is appropriate to
there should be needs time to calm compromise when
amendments to down before it would not be
it. confrontation. possible to make
However, both sides
avoidance can completely happy
require more effort while still moving
than merely facing forward.
the problem and
can cause friction
between the
disagreeing
parties.

Part 2
Question 1:

CRITERIA AUSTRALIA CHINA

According to the 2016 census, English is the The predominant language is Standard Chinese,
only language spoken in the home for close 92% according to Wikipedia
1 Language
to 72.7% of the population

Low-context: High-context culture:

Australian expect communications to be
explicitly stated so that there’s no risk of
High Context/ confusion, and if a message isn’t clear
2
Low Context enough, it will slow down the process of
communication. In the most extreme cases,
leaving any sort of wiggle room for
interpretation can be disastrous
Low
* Power Distance (PDI) in Australia is
relatively low, with an index of 36,
compared to the world average of 55. This is
Power indicative of a greater equality between
3
Distance societal levels, including government,
organizations, and even within families.
China is considered a high context culture as
communication tends to be indirect and the real
message needs to be interpreted according to the
context. If you neglect the importance of context
in China, you increase the chances of
misunderstanding, confusion and even conflict.
High
At 80 China sits in the higher rankings of PDI –
i.e. a society that believes that inequalities
amongst people are acceptable. The subordinate-
superior relationship tends to be polarized and
there is no defense against power abuse by
superiors. Individuals are influenced by formal
authority and sanctions and are in general
optimistic about people’s capacity for leadership
and initiative.
 High - Individualism
Australia, with a score of 90 on the
dimension, is a highly Individualist culture.
This translates into a loosely-knit society in
Individualism/
4 which the expectation is that people look
Collectivism
after themselves and their immediate
families. In the business world, employees
are expected to be self-reliant and display
initiative
Masculinity
Score: 61
Behavior in school, work, and play are based
on the shared values that people should
“strive to be the best they can be” and that
Masculinity/
5 “the winner takes all”. Australians are proud
Femininity
of their successes and achievements in life,
and it offers a basis for hiring and promotion
decisions in the workplace. Conflicts are
resolved at the individual level and the goal
is to win.
Low
Score: 27
This score implies that Australians do not
Uncertainty
6 like uncertainty, that they want stability for
Avoidance
members, they strive for consensus, follow
many rules, and tend to have more stress and
anxiety - bonus :3
7 Long-term Low
Orientation Score: 21
People in Australia have a strong concern
with establishing the absolute Truth; they are
normative in their thinking. They exhibit
great respect for traditions, a relatively small
propensity to save for the future, and a focus
on achieving quick results.
Low - Collectivism
Chinese culture places more value on unity and
conformity. Chinese choose to reflect the views
of their leaders and ancient traditions rather than
their own personal views. As such, China can be
described as a collectivist society.
Masculinity
Score: 66
The need to ensure success can be exemplified
by the fact that many Chinese will sacrifice
family and leisure priorities to work. Service
people (such as hairdressers) will provide
services until very late at night. Leisure time is
not so important. The migrated farmer workers
will leave their families behind in faraway
places in order to obtain better work and pay in
the cities. Another example is that Chinese
students care very much about their exam scores
and ranking as this is the main criteria to
achieve success or not.
Low
Score: 30
Truth may be relative though in the immediate
social circles there is concern for Truth with a
capital T and rules (but not necessarily laws)
abound. Nonetheless, adherence to laws and
rules may be flexible to suit the actual situation
and pragmatism is a fact of life. The Chinese are
comfortable with ambiguity; the Chinese
language is full of ambiguous meanings that can
be difficult for Western people to follow.
Chinese are adaptable and entrepreneurial. At
the time of writing the majority (70% -80%) of
Chinese businesses tend to be small to medium
sized and family owned.
High
Score: 87
China has a very pragmatic culture. In societies
with a pragmatic orientation, people believe that
truth depends very much on situation, context
and time. They show an ability to adapt
traditions easily to changed conditions, a strong
propensity to save and invest, thriftiness, and
 perseverance in achieving results.
Chinese aesthetics stresses not objective
imitation but rather emotional communication,
Aesthetics in the Australian tradition,
foregrounding the refined refinement and
conceived as philosophical inquiry into the
8 Aesthetics edification of natural desire. The integration of
experience of beauty, acquired its name and
poetry, painting, and calligraphy is another
essential nature in the eighteenth century.
hallmark of traditional Chinese aesthetic thought
and practice
Internally-focused
Internally/
They’re culturally predisposed to see the
9 Externally- Externally-focused
members of their organizations as family but, in
Focused
return, demand a lot from them.
Passive Culture
+ Embedded relationships are important in the
Chinese concepts, supervisor-subordinate
relationships characterized by “vertical linkage”
and are bound by “loyalty.”
+ Resort to internally (self)-oriented methods, in
Passive-aggressive culture the form of deference, compliance and
Passive/
Australian people tend to reward a lot of cooperativeness and acceptance of the situation
Aggressive/
10 critical, oppositional, competing power-type and self-constraint, to maintain a harmonious
Constructive
behaviour which in fact gets in the way of relationship
Culture
how well the organisation functions. + Adherence to rules and structures, resistance
to change
+ Acceptance of unequal, hierarchical human
relationships and of obligatory social networks
+ Dealing with interpersonal conflict through
escapism, diversion, and “waiting-it-out”
+ Avoid personal satisfaction.

Question 2 + 3:
 Feature AUSTRALIA CHINA
The Fair Work Act 2009 is arguably
the most important piece of China employment law is deemed to have the
employment law in Australia. The following characteristics: a very strict
National Employment Standards termination system; the existence of local
(NES), contained in the Fair Work Act policies and rules besides the national laws.
2009 set out 10 minimum entitlements
which apply to most employees in the For the investors in China, there are two
private sector. primary laws they must consider:
+ 1995 Labor Law of the People’s Republic
However, it is not the only piece of of China; and,
workplace relations legislation in + 2008 Labor Contract Law of the People’s
I. General Australia, as it is supplemented by Republic of China.
Characterist Overview of other federal, state and territory laws, Besides that, there are several other China
ics of employment nor does it apply to every workplace in employment law and supplementing policies
Employmen law Australia. applicable to any business in the country.
t Law
-> Australia has a well-developed -> The relevant China employment laws are
employment system, designed to way too numerous and not to mention quite
provide flexibility and certainty to complex and ambiguous.
both employers and their employees.
IMPLICATIONS: Australia has a well-developed employment system that can
provide flexibility and certainty to both employers and their employees, which is an
advantage for foreign companies to expand their business.

Meanwhile, the relevant China employment laws are too numerous, quite complex and
ambiguous => foreign firms looking to expand business in China may face legal risks
and liabilities if they fail to comply with all levels of applying law.

II. All the foregoing processes and regulations

Authorizati pertaining to employment will be rendered
on for A company doesn’t need to establish a useless if the foreign investor will not first
Foreign Does a Foreign full-fledged foreign subsidiary to establish a legal entity in China. Bringing a
Employees Employer need begin hiring employees in Australia. business in China is a prerequisite to
& Hiring to Establish or recruiting employees in the country, either
Process Work through local or foreign employees, or both.
a Local Entity
to Hire an
Employee?
 IMPLICATIONS: Expanding does not necessarily mean to have a legal entity in
another country. In this case, if we as a Vietnamese company would like to recruit
local employees, Australia employment law would be more flexible than China
employment law.

There are a number of visa categories
available to businesses and business
people wishing to come to Australia.
+ Business visitors: Business people
planning to enter Australia for a
business visit are able to apply for
either an Electronic Travel Authority
(ETA) or eVisitor visa
+ Subclass 400 visa – short term work:
To access this visa, the proposed work
must be highly specialised, where the
person possesses skills which are not
Requirement readily available to the Australian
for Foreign business from the local labour market.
Employees to + Sponsoring staff to Australia:
Work Companies operating in other
countries wishing to establish an entity
in Australia, are able to sponsor
individuals to come to Australia on a
Subclass 457 Temporary Work
(Skilled) visa.
The foreigner may apply for a work visa.
After obtaining the work visa, the foreigner
should apply for a work permit within 30
days of entering or reentering China. With
the work permit, the foreign employee should
apply for a residence permit within 30 days
after entering or reentering China. Work
permits usually have a term of one year and
never exceed five years even if certain
conditions are satisfied
In addition, foreigners who come to China to
perform special tasks in the areas of
technology, scientific research, management
or guidance with Chinese business partners
or other reasons and stay in China less than
90 days (the “Short-term Work”) must apply
to the relevant authorities for their
employment licenses, approval letters,
certificates of employment, invitation letters
or confirmations of invitation and work visas.

IMPLICATION: This factor matters when Vietnamese company is to have staff

rotation from VN - the chosen country.
Under Australia law, there are a variety of visa categories applicable for business
people, which makes it easy to obtain. So companies have to consider this feature
together with the entry mode they choose to enter a new market.
 - Background checks are generally
permissible in the Australian
employment law context to the extent
The background checks or
that the checks are necessary to
application/interview questions shall not
Limitations on ascertain a candidate’s ability to fulfil
infringe employees’ privacy rights or equal
Background the role.
employment rights; otherwise the employer
Checks - Background checks that do not carry
could be litigated pursuant to PRC Tort Law
some form of justification run the risk
and other applicable laws.
that they will be considered
discriminatory or an infringement of
the individual’s privacy

III. Article 91 The employer involved in any one

Working - Employers who intentionally of the following cases that encroach upon the
Conditions underpay their employees now legitimate rights and interests of labourers
exposed to a criminal penalty of up to shall be ordered by labour administrative
ten years’ imprisonment (Queensland departments to pay labourers wage
Criminal Code) remunerations or to make up for economic
- Wage theft will be a criminal offence losses, and may even order it to pay
in that State from 1 July 2021 compensation:
(Victoria Criminal Code) (3) Payment of wages to labourers below
local standards on minimum wages;
IMPLICATIONS: The wage of anti-theft law will be a great protection for the
Sentence to
company's employees, but in some ways, if the company's finances and the nature
wage theft
of the company from Vietnam do not meet the minimum wage in In Australia, this
law can be a concern for leaders who directly pay employees. In case the company
has difficulties, this law will inhibit the big decisions of employers, so the operation
of human resources will not be completely suitable for a company from Vietnam.
Therefore, although this law treats employees fairly with the standard of living in
Australia, it is still necessary to consider whether the size and nature of the
company from Vietnam is suitable for the standard of living in this country, the
speed of penetration as well as the quality of labor will also be a combined factor to
consider whether this country is suitable for a company from Vietnam to penetrate.
However, the recruitment process in Australia will be easier for China because of
the power of the law.
ChinaFemale employees are entitled to 98
Up to 30 days of “flexible parental days of maternity leave, including 15 days of
leave” at any time up to two years prenatal leave. In the event of a difficult
Parental leave after the birth or adoption of a child - childbirth, 15 additional days will be given.
2020 amended version of Fair Work For multiple births, 15 days' additional
Act 2009 maternity leave will be granted for each
additional child

Annual leave Four weeks paid leave per year, plus Annual leave is a paid benefit in China, and
an additional week for certain shift is required if an employee has worked more
workers. than one year cumulatively for all employers
 For each year of service with his or her
employer, an employee is entitled to:
(a) 4 weeks of paid annual leave; or

(b) 5 weeks of paid annual leave, if:

(i) a modern award applies to the
employee and defines or describes the
employee as a shiftworker for the
purposes of the National Employment
(not just the current employer). For
Standards; or
cumulative employment of 1-10 years there
(ii) an enterprise agreement applies to
is five days of annual leave, and twice that
the employee and defines or describes
amount for service of 10-20 years.
the employee as a shiftworker for the
purposes of the National Employment
Standards; or
(iii) the employee qualifies for the
shiftworker annual leave entitlement
under subsection (3) (this relates to
award/agreement free employees).
Fair Work Act 2009 - Division 6—
Annual leave

In China, personal leave does not exist.. But

Full time and part time employees are
entitled to 10 days per year of paid
Personal/carer’
personal/carer’s leave. The entitlement
s leave
accrues progressively during a year
and is cumulative.
instead of that, they allow employees to
enjoy family visit leave if the immediate
family (spouse/parents) do not live together
with the employee. In such a case, leave days
for visit to spouse can be up to 30 days per
year and leave days for visit to parents can be
up to 20 days per year (single employees)
and up to 20 days per 4 years (married
employees).

The minimum sick leave entitlement in China

The yearly entitlement is based on an
Sick Leave
employee's ordinary hours of work and
Entitlements
is 10 days for full time employees
is three months (for employees with less than
10 years cumulative work experience). Sick
leave is paid on a schedule that depends on
the number of years of work, ranging from
60% to 100% of salary.

IMPLICATIONS: It's not a good choice to work in China with lower Salary and fewer annual leave
days. So in this case, Australia is more priored.
But in general, for the recruitment process, both countries have similar laws on leave regulations,
so choosing one of the two countries according to this feature will not be too different if considering
the factors of considering leave in the year for both countries.

Health and The primary duty is to ensure, so far as The Special Rules on the Labor Protection of
 is reasonably practicable, that the
health and safety of other persons is
not put at risk from work carried out Female Employees issued by
as part of the conduct of the business the State Council in 2012 provides that
Safety in
or undertaking. Officers have a duty to “Employers shall prevent and prohibit the
the Workplace
exercise due diligence to ensure that sexual harassment of female employees in
the person conducting the business or their work places.”
undertaking complies with its duties or
obligations.

An employer must not request or

require an employee to work more
than the following hours of work in a
week, unless the additional hours are
reasonable:
Article 36 The State shall practise a working
- for a full-time employee, 38 hours or
hour system wherein labourers shall work for
- for an employee other than a full-
no more than eight hours a day and no more
time employee, the lesser of:
than 44 hours a week on the average.
+ 38 hours
+ the employee’s ordinary hours of
Article 41 The employing unit may extend
work in a week.
working hours as necessitated by its
Maximum
production or business operation after
Working Assessment of whether additional
consultation with the trade union and
Hours per hours are “reasonable” involves
labourers, but the extended working hour per
Week/Overtim factors which include the employee’s
day shall generally not exceed one hour;
e conditions remuneration, patterns of work in the
industry, and the nature of the
If such extension is needed for special
employee’s role. As previously
reasons, under the condition that the health of
mentioned, all employees covered by
labourers is guaranteed, the extended hours
an Award, enterprise agreement or
shall not exceed three hours per day.
registered agreement may also be
However, the total extension in a month shall
entitled to a higher pay rate and
not exceed thirty six hours.
additional allowances when working
on weekends, public holidays,
overtime, early in the morning and/or
late at night or in difficult or
unpleasant circumstances.

IV. Allowance/ - Australian occupational health and - Social Security

Employee Insurance safety: Employers in Australia are
Benefits required to maintain a safe workplace
and meet Australian occupational
health and safety requirements.
-Workers’ compensation system:
Employers in Australia are required to
The Chinese government has set up social
security systems such as basic pension
insurance, basic medical insurance, work-
related injury insurance, unemployment
insurance, maternity insurance, etc. to protect
the basic rights of citizens
 maintain a safe workplace and to
maintain workers’ compensation
insurance in the event of a workplace
incident.
-Australian Superannuation
(Retirement Pension): Superannuation
is money set aside over the employee’s
lifetime to provide for their retirement.
- Healthcare and Insurances
Under Australian law, most employees
- Required Leave
are entitled to have superannuation
- Pensions
payments made on their behalf by their
employer.
-Employment agreements: Information
on the various employment
agreements in Australia, including
workplace agreements, awards, and
agreements with independent
contractors.

IMPLICATIONS: From the comparison, we can see that their policy for Australia
requires more benefits for workers and is more specific to China. So for China, the
allowance policy may be less attractive than for workers in Australia

The current national minimum wage in

Australia is $19.84 per hour or
This minimum wage normally consists of a
$753.80 per 38-hour week, effective
monthly and an hourly minimum wage for
Minimum from 1 July 2020. Modern Award
full-time and part-time employees,
Wage (Add on wages also increased by 1.75% from 1
respectively. And there is 387,22 USD/month
Labor July 2020 within certain industries,
in Shanghai (2020) and it differs from other
Productivity to and will increase by 1.75% for all
cities.
comparing) other industries on either of 1
- Labor productivity per hour in China 2017
November 2020 or 1 February 2021.
is 14USD/hour - - Statista.com
- Labor Productivity: 58,6USD/hour in
Australia in 2017
 Comply with all essential formal
Generally, an employer must not
requirements and rules when writing a notice
terminate an employee’s employment
of termination and avoid so-called formal
unless they have given the employee
errors:
written notice of the last day of
employment. An employer can either
+ Termination must always be in a written
let the employee work through their
form, signed by an authorized representative
notice period, or pay it out to them
+ The employee must give a 30-day notice to
(also known as pay in lieu of notice).
the employer before leaving the company
V. Legal
+ During the probation period: 3 days’ notice
Responsibili + The amount of notice depends on the
ty age of the employee and how long
PRC labour law generally favours employees
The grounds they have been employed on a
and therefore contains many statutory
for the continuous basis by the employer.
provisions on termination of employment
termination of + Redundancy occurs when an
contracts that protect employees’ rights and
employment employer either decides they no longer
interests. The statutory grounds for
need an employee’s job to be done by
termination are: termination by mutual
anyone, or the employer becomes
agreement; termination by employee;
insolvent or bankrupt, and terminates
termination by employer; and automatic
their employment.
termination

IMPLICATIONS: So from the employer, or HR perspective, there are not much

differences between Australia and China regarding the termination of
employment. There are pretty similar processes, but in China, the law generally
favours employees and the rules, reasons for termination are stated clearly.
Therefore, in China, it can support us reduce time consuming or others cost in HR
process
VI. Employees to If the employee was employed by a Regarding the confidential information,
Confidential Disparage the corporation, sections 182 and 183 of pursuant to PRC Labor Contract Law,
ity of Employer or the Corporations Act 2001 (Cth) may confidentiality obligation could be agreed
information Divulge apply. The Corporations Act prevents upon between the employer and employee in
Confidential an employee of a corporation from the employment contract. If the employee has
Information using their position or information to divulged confidential information to any third
gain an advantage for themselves or to party, the employer could claim any damage
cause a detriment to the company. incurred thereof against the employee). The
employer may, in accordance with internal
The common law imposes a duty of policies, impose disciplinary measures on the
loyalty and fidelity upon all employees if they use social media to
employees. This duty arises from the disparage the employer or divulge
contract of employment, but may also confidential information.
arise from a fiduciary obligation where
the employee is in a special position of
trust and confidence. In the context of
 confidential information, the duty of
fidelity requires that an employee must
not use information obtained in the
course of his or her employment to the
detriment of the employer.

IMPLICATIONS: - Both country have mentioned about the security of company

information. But China law is more detailed than Australia
- If we are a company that need th extreme protection of infomation, know-how,
data -> China law is better to keep the secret
- If the company is more agile and flexible and want to changer, want to adapt ->
China Law is a barrier to innovate the company

Question 4:
From the above analysis, our team decided to choose Australia as the company's destination instead of China. The
following observations from different perspectives will shed light on why we have come to this decision:

a. From the cultural aspect, we follow 10 criteria of cultural differences to analyze the case including Language,
High/Low context of working style, Power distance, Individualism, Masculinity, Uncertainty Avoidance, Long term
orientation, Aesthetic, Internally/Externally Focused, Passive/Aggressive/ Constructive Culture

While other factors are balanced and have advantages and disadvantages, Australia's Language, Context working style,
Masculinity, and Passive aggressive culture are slightly better.
Specifically according to the 2016 census, English is the only language spoken in the home for close to 72.7% of the
population, which makes it easier for a business to adapt to a new working environment and not be affected. Combined
with the low context working style, the international-style business development standardizes the internationalization
process of the business, which makes the recruitment and organization process unified.

b. From the perspective of employment law, we have distilled the following points that are beneficial for businesses
when penetrating into Australia.

General Characteristics of Employment Law:

Australia has a well-developed employment system that can provide flexibility and certainty to both employers and their
employees, which is an advantage for foreign companies to expand their business.

Authorization for Foreign Employees & Hiring Process

Expanding does not necessarily mean having a legal entity in another country in Australia meanwhile the foregoing
processes and regulations pertaining to employment will be rendered useless if the foreign investor will not first
establish a legal entity in China. In this case, if we as a Vietnamese company would like to recruit local employees,
subjecting ourselves to Australia 's employment law would be more flexible than China's employment law.

Working Conditions

Again, with the well-developed employment system of the Australian Law, working conditions in Australia are clearer
and clearer than the complicated laws in China, in this regard, from an HR perspective, we have found that the
recruitment and operation process within the company will go more smoothly than when operating in another country if
it is regulated by clear laws. This benefits both the employer and the employee.

Employee Benefits

From the comparison, we can see that their policy for Australia requires more benefits for workers and is more specific
to China. So for China, the allowance policy may be less attractive than for workers in Australia

For the Minimum Wage (Add on Labor Productivity to compare), from HR perspective, there is still not enough
information to decide which one is most suitable, but we can consider more with the level of labor's experience and how
much we are willing to pay based on our budget. To be more specific, if other teams need teammates with a high level of
skill, productivity and have a high budget, then Australia can be suitable and vice versa.

Legal Responsibility

So from the employer, or HR perspective, there are not many differences between Australia and China regarding the
termination of employment. There are pretty similar processes, but in China, the law generally favours employees and
the rules, reasons for termination are stated clearly. Therefore, in China, it can help us reduce time consuming or other
costs in the HR process. This is quite a minus point for choosing Australia, however companies can work on their own
operation to set up and optimize all the processes in the recruiting and operating activities. The HR department can
invest in this field to take advantage of other prospects when choosing Australia.

Above are the plus points that led us to the decision to choose Australia to penetrate. The next section will be the future
benefits that can be obtained if following this choice.

Question 5:
After consideration, our group came up with a decision that Australia is the country to expand and penetrate to for those
reasons.

First is the potential benefit of human resources development by positive cross-cultural exchange. Australia has a
different culture with Vietnam which can mutually add in the benefit to create a better working environment, more
innovations.

Secondly, although there is the risk that different cultures can cause conflict and misunderstanding, Australia is much
better than China in many perspectives. The employment rules of Australia are clearer, more open and bring more
fairness to the employees and the employers with reasonable remuneration policy than China. The gap between
Australia and Vietnamese culture is closer day by day and English and Low-context culture and help to reduce the
miscommunication internally and externally

Thirdly, more profit can be generated from productivity labour and the professional working style of Australia. Despite
high living standards, high salaries need to be paid for employees in Australia, according to Statista.com, in 2017, Labor
Productivity in this country is 58,6USD/hour. It is 5 times bigger than China’s Labor Productivity, which is
14USD/hour. And it’s professional working style, such as low context, nice attitude toward time, result oriented and
actively contributing to the company can help the company create more profit in a sustainable way.

Those are our three main reasons that drive us to choose Australia as the destination of expansion from the point of view
of human resources. There are many other ways to make decisions but this is the best solution that can help to build a
healthier human resources system, less hidden risks and especially generate the optimal and sustainable profit for the
company.

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