A kickback is an illegal payment intended as compensation for preferential treatment or any other type of improper services received. The kickback may be money, a gift, credit, or anything of value. According to Article 163 of the Criminal Law of the People’s Republic of China [crime of bribery of non-state functionaries], the staff of the company or other units take advantage of their position to ask for other people’s property or illegally accept other people’s property to seek interests for others.Many foreign trading enterprises are facing a difficult problem, how to avoid employees getting kickbacks without permission. We need to understand whether it is illegal for employees to receive kickbacks. At the same time, it is necessary to formulate the internal rules of the company by following the law.

Criminal and civil liabilities that can be investigated:

  • If the company’s employees receive a rebate of more than 5000 yuan, it is against the criminal law
  • Specific sentencing standards: more than 5000 yuan but less than 100000 yuan, with a term of imprisonment of less than 5 years. More than 100000, with a term of imprisonment of more than five years.
  • The company has the right to ask employees to compensate for economic losses. Have the right to dismiss the employees who receive the rebate immediately without paying any compensation.
  • For the crime of bribery of company and enterprise staff, the briber will also violate the criminal law, with a term of imprisonment of less than three years (50-100000) and more than three years (100000). However, those who take the initiative to account for bribery before being prosecuted may be exempted from punishment.