Ding Jianhe struggled to find a decent job for 14 years before discovering that an erroneous report from a former boss in his permanent record was scaring off potential employers.

Ding, 44, reached a settlement last week in a lawsuit against his former employer, Shanghai Public Transportation Co, for claiming that he was fired from his job in 1989 for theft.

Although he filed a 60,000 yuan (US$7,228) lawsuit with the Shanghai Yangpu District People's Court in February, Ding agreed to accept 30,000 yuan from the company. No criminal charges will be filed, but the case has raised questions about the way employees are tracked through permanent records they have no right to inspect.

Ding began working in the boiler room at Shanghai Public Transportation in February 1981. He had no problems on the job until December 31, 1988, when he left his post without permission to take a nap at home.

The company punished him by transferring him to a new job as a bus conductor. He refused the job and was eventually fired on April 12, 1989.

At that time the company put a report in his permanent file saying Ding was fired for theft, an error the company blames on a typing mistake.

Permanent files play an important role for all Chinese employees. They contain information on a person's education and job history, with reports from former employers and teachers. But, while potential employers can view the files, individuals can not look at their own records.

For 14 years after he left the transportation company, Ding couldn't find a decent full-time job, making his living from a series of low-level part-time posts. He applied for jobs at eight factories but was turned down every time.

"I just felt odd since the officials were very satisfied with me at first. However, they all changed their minds later."

He discovered why this January as he was applying to join the city's social insurance system.

During the application process, a clerk at the Yangpu Job Introduction Agency handed Ding records from his file he wasn't supposed to see.

"To my surprise, the document said that I was punished for theft in December 1988. I did violate labor regulations, but I never stole anything," he said.

On February 13, Ding talked to his former employer, who investigated the situation and offered an apology. Ding wanted more, so he went to court.

"The facilities in charge of personal files, like the personnel bureau, should check all of the records to prevent any mistake," said Li Hong, an attorney with Shanghai Zhongguang Law Firm.

He also noted that employees can hire a lawyer to check their files for them, but they can't look themselves.

The Shanghai Personnel Bureau says regulation changes made over the past 14 years would prevent a situation like Ding's from happening again. Under current rules, employees must sign any document referring to punishment their employers put into their files. If they refuse to sign, the company must state that on the document.

"Technically, people can ask the police to investigate if there is an intentional slur in their files," said a spokesman for the Yangpu court.

To date, however, no such criminal case has ever been tried in the city.

(eastday.com November 26, 2003)