The Ministry of Labour and Personnel issued these provisions in implementation of the Provisions of the State Council regarding the Encouragement of Foreign Investment (published in Beijing Review, No. 43, 1986). The new provisions are designed to guarantee the autonomy of enterprises with foreign investment in the hiring of personnel and in the determination of wages, insurance and welfare expenses for staff and workers. Such enterprises may determine their own organisational structure and personnel system and may engage in their own recruitment, which may, with the consent of the Department of Labour and Personnel, extend to outside the locality concerned. Personnel found not to be qualified for their posts, who have become redundant as a result of production changes or who have caused harm by having violated the rules and regulations of the enterprise may be dismissed. Wages in such enterprises are to be determined by the board of directors, but shall be no less than 120 per cent of the average wages in state-owned enterprises under similar conditions in the same trade and in the same locality. Wages may be adjusted according to the economic performance of the enterprise. The enterprise shall contribute to the retirement and unemployment insurance funds and shall pay housing subsidies. Insurance and welfare available to the workers are to be determined in line with relevant provisions issued by the Government.