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{{Short description|Primary source of labour law in China}}
{{Multiple issues}}
{{Infobox legislation
⚫
| short_title = Labour Contract Law of the People's Republic of China
| image = File:National Emblem of the People's Republic of China (2).svg
| long_title = Labour Contract Law of the People's Republic of China
| citation = [https://www.ilo.org/dyn/natlex/natlex4.detail?p_isn=76384 Labour Contract Law] (English)
| territorial_extent = [[People's Republic of China]] but excludes China's [[Special Administrative Regions]].
| enacted_by = [[Standing Committee of the National People's Congress]]
| date_enacted = June 29, 2007
| date_commenced = January 1, 2008
| amended_by = [https://www.ilo.org/dyn/natlex/docs/ELECTRONIC/76384/112877/F1810845897/CHN76384%20Eng.pdf Labor Contract Law of the People's Republic of China (2012 Amendment)]
| summary = A law enacted in order to improve the labor contract system, define the rights and obligations of parties to a labor contract, protect the legitimate rights and interests
of workers, and establish and develop a harmonious and stable labor relationships.
| status = In force
}}


The '''Labour Contract Law of the People's Republic of China''' (中华人民共和国劳动合同法) is the primary source of [[labour law]] in [[China]] and went into effect on January 1, 2008, following a series of staff-[[Dismissal (employment)|sacking]] [[scandal]]s in many companies. The [[Ministry of Human Resources and Social Security of the People's Republic of China]] is the responsible government department for administrating this law.
The '''''Labour Contract Law of the People's Republic of China''''' (《中华人民共和国劳动合同法》) is the primary source of [[labour law]] in [[China]] and went into effect on January 1, 2008, following a series of staff-[[Dismissal (employment)|sacking]] [[scandal]]s in many companies. The [[Ministry of Human Resources and Social Security of the People's Republic of China]] is the responsible government department for administrating this law.<ref>{{Cite book|last1=Hunter|first1=Christopher|url=https://books.google.com/books?id=rZXsf1eIIO4C&q=China+Labor+law+%22Article+36%22+working+hours&pg=PA107|title=Employment Law in China|last2=Lam|first2=Louisa|last3=Lin|first3=Ketong|date=2008|publisher=CCH Hong Kong Limited|isbn=978-988-17014-2-8|language=en}}</ref>


==Definition==
== The Law ==
While the enforcement of the law and its efficacity is sometimes questioned, the labor contract law promised to enable workers to get their employment granted only on basis of a contract, provide guidelines for standing working hour regulations of maximum 40 hours per week, non-tolerance for delayed payment of wages, relaxations in terms of paid leave etc.<ref>{{Cite web|last=|first=|date=|title=China's constitution appears headed for the growing list of taboo topics|url=https://www.scmp.com/news/china/article/1254349/chinas-constitution-appears-headed-growing-list-taboo-topics|archive-url=|archive-date=|access-date=2021-01-29|website=South China Morning Post|language=en}}</ref><ref>{{Cite news|last=|first=|date=|title=LABOR CONTRACT LAW OF THE PEOPLE'S REPUBLIC OF CHINA ORDER OF THE PRESIDENT OF THE PEOPLE'S REPUBLIC OF CHINA|work=|url=https://www.ilo.org/dyn/natlex/docs/ELECTRONIC/76384/108021/F755819546/CHN76384%20Eng.pdf|access-date=}}</ref><ref>{{Cite web|last=Shen|first=Joy|date=2018-09-19|title=Wages in China- Wide Differences Between Expat and Local Employees|url=https://www.fdichina.com/blog/wages-in-china/|access-date=2021-01-29|website=FDI China|language=en-US}}</ref><ref>{{Cite news|last=Tejada|first=Carlos|date=2009-02-04|title=Labor Activist: Why China Needs Collective Bargaining Now|language=en-US|work=Wall Street Journal|url=https://www.wsj.com/articles/BL-CJB-901|access-date=2021-01-29|issn=0099-9660}}</ref>
According to the new 98-article-long "Labor Contract Law", employees of at least 10 years standing are entitled to contracts that protect them from being dismissed without cause. {{Citation needed|reason=Makes mention of the source, but there is no guide to finding this information}} The new law also requires employers to contribute to employees' social security accounts and sets wage standards for employees on probation and working overtime.{{Citation needed}}


== Background ==
China's new labor contract law targets primarily domestic companies that do not have labor contracts and that generally fail to comply with China's old laws.{{Citation needed|reason=Who has made the claim of its target? Needs a source.}} Foreign companies have had a stronger track record of signing contracts with employees and bringing to China their global work rules and environmental, health and safety practices.{{Citation needed|reason=No knowledge of which companies, or any source for this assertion.}}
The [[All-China Federation of Trade Unions]] (ACFTU) had the major role in advancing the Labor Contract Law.<ref name=":0222">{{Cite book |last=Li |first=David Daokui |title=China's World View: Demystifying China to Prevent Global Conflict |date=2024 |publisher=[[W. W. Norton & Company]] |isbn=978-0393292398 |location=New York, NY |author-link=David Daokui Li}}</ref>{{Rp|page=67}} The ACFTU drafted the law and proposed it to the [[National People's Congress]].<ref name=":0222" />{{Rp|page=67}} The NPC conducted research trips to regions with labor-intensive industries like Guangdong.<ref name=":0222" />{{Rp|page=67}} After multiple rounds of formal discussions and informal negotiations and consultations, the law was passed.<ref name=":0222" />{{Rp|page=67}}


==History==
== Amendment ==
⚫
The Standing Committee of the [[11th National People's Congress]] adopted the decision on the Revision of the Labor Contract Law of the People's Republic of China ('Amendment'). The Amendment will take effect July 1, 2013, with the claimed intention to provide better protection to workers employed by labor dispatching agencies.<ref>{{Cite web|last=Briefing|first=China|date=2018-03-19|title=Labor Dispatch in China: Definition, Scope, and Limit|url=https://www.china-briefing.com/news/labor-dispatch-in-china-definition-scope-and-limit/|access-date=2021-01-29|website=China Briefing News|language=en}}</ref>
According to statistics from the [[All-China Federation of Trade Unions]] in 2008, 40 percent of [[private-sector]] employees lack labor contracts and there are many cases of wage default and [[forced labor]].{{Citation needed}} The new law is to strengthen China's overall economy and regulation.{{Citation needed}}

The law prompts companies to improve their management, capital-labor relations and [[productivity]]. A sound market economy system in return would benefit businesses—both domestic and foreign companies.{{Whom?}}

Compared to the old contract law issued in 1994, the new law is supposed to provide greater [[job security]].{{Whom?}}

Ever since the law was approved by China's [[National People's Congress|top legislature]] in June 2007, it had aroused heated discussion and concern among domestic and foreign companies.{{Who}}

China appealed to foreign investors with its cheap labor, its preferential investment policies and its immense market. Employers feared the new law would have meant bigger [[severance package|severance payments]] and higher operational costs.{{Who}}

In the short term, it has been predicted that companies investing in supermarket chains, restaurants, building industries and other low-end manufacturing, which abuse cheap labors and avoid paying [[social security]] would suffer some losses. But in the long run, the new labor contract law would not negatively impact China's [[competitiveness]] and appeal as a destination for foreign investment.{{Whom?}}

Small and medium enterprises in particular have already particularly felt the effects of the law. {{Citation needed}} For example, some Korean companies have already decided to move their business from China to Vietnam or other developing countries where labor is much cheaper. {{Citation needed}} About 98 percent of Korean enterprises in China are independent small and medium firms.{{Citation needed}}

Other companies reacted to the law by proactively firing employees who would have come under the new guidelines.{{Who}} In October, US-based retail giant [[Wal-Mart]] fired about 100 employees at a sourcing center in China.{{Citation needed}} The company said the layoff was part of its global restructuring. LG and Olympus have respectively announced plans to lay off employees.{{Citation needed}} [[Carrefour]] China has asked over 40,000 of its Chinese employees to re-sign a two-year labor contract before December 28, 2007 regardless of an employees' service length or the expiration of their current labor contract. {{Citation needed}}

==Amendment==
⚫
The Standing Committee of the National People's Congress adopted the decision on the Revision of the Labor Contract Law of the People's Republic of China ('Amendment'). The Amendment will take effect July 1st, 2013, intended to provide better protection to workers employed by labor dispatching agencies. {{Citation needed}}


Highlighted requirements include:
Highlighted requirements include:
a. Labor dispatch agency must have a minimum registered capital of no less than RMB 2,000,0000 (326,00 USD);
*[[Labor dispatch]] agency must have a minimum registered capital of no less than RMB 2,000,000;<ref>{{cite web | url=http://www.china-briefing.com/news/2013/03/18/china-revises-labor-contract-law.html | title=China Revises Labor Contract Law | date=18 March 2013 }}</ref>
b. Operate from a permanent business premise with facilities taht are suitable to conduct its business;
* Operate from a permanent business premise with facilities that are suitable to conduct its business;
c. have internal dispatch rules that are compliant with the relevant laws and administrative regulations;
* have internal dispatch rules that are compliant with the relevant laws and administrative regulations;
d. Satisfy other conditions as prescribed by laws and administrative regulations; and
* Satisfy other conditions as prescribed by laws and administrative regulations; and
e. Apply for an administrative license and obtain approval from the relevant labor authorities.
* Apply for an administrative license and obtain approval from the relevant labor authorities.

⚫
All labor dispatch agencies established after July 1, 2013, will need to meet these new local labor law requirements before they can start the company registration process. Existing agencies that are already licensed have until July 1, 2014, to meet all local labor law requirements before renewing their business registration. <ref>National Law Review</ref>


⚫
All [[Dispatched labor|labor dispatch agencies]] established after July 1, 2013, will need to meet these new local labor law requirements before they can start the company registration process. Existing agencies that are already licensed have until July 1, 2014, to meet all local labor law requirements before renewing their business registration.<ref>''[[The National Law Review]]''</ref>


== See also ==
* ''[[Labour Law of the People's Republic of China]]''


==See also==
== References ==
⚫
{{Reflist}}
*


⚫
== External links ==
==Notes==
⚫
*[https://web.archive.org/web/20111006063406/http://en.cnci.gov.cn/Law/LawDetails.aspx?ID=6079&p=1 Text of the Labor Contract Law of the People's Republic of China] includes supplementary materials
⚫
{{Reflist|2}}
⚫
*[https://archive.today/20130415072639/http://www.ldht.org/ Labor Contract Law - The People's Republic of China Labor Contract Law Study Site] in Chinese
⚫
*[http://www.natlawreview.com/article/china-enacts-new-employment-law-affecting-employers-who-do-not-directly-employ-their China Enacts New Employment Law Affecting Employers Who Do Not Directly Employ Their Workers]


{{-}}
⚫
==External links==
{{Economy of China}}
⚫
*[http://en.cnci.gov.cn/Law/LawDetails.aspx?ID=6079&p=1 Text of the Labor Contract Law of the People's Republic of China] includes supplementary materials
⚫
*[http://www.ldht.org/ Labor Contract Law - The People's Republic of China Labor Contract Law Study Site] in Chinese
⚫
*[http://www.natlawreview.com/article/china-enacts-new-employment-law-affecting-employers-who-do-not-directly-employ-their China Enacts New Employment Law Affecting Employers Who Do Not Directly Employ Their Workers]
⚫
{{Economy of the People's Republic of China}}


[[Category:Laws of China]]
[[Category:Laws of China]]
[[Category:Labor relations in China]]
[[Category:Labor relations in China]]
[[Category:Labour law by country]]
[[Category:Chinese labour law]]
[[Category:Chinese labour law]]

Latest revision as of 15:00, 5 May 2024

Labour Contract Law of the People's Republic of China
Standing Committee of the National People's Congress
  • Labour Contract Law of the People's Republic of China
CitationLabour Contract Law (English)
Territorial extentPeople's Republic of China but excludes China's Special Administrative Regions.
Enacted byStanding Committee of the National People's Congress
EnactedJune 29, 2007
CommencedJanuary 1, 2008
Amended by
Labor Contract Law of the People's Republic of China (2012 Amendment)
Summary
A law enacted in order to improve the labor contract system, define the rights and obligations of parties to a labor contract, protect the legitimate rights and interests of workers, and establish and develop a harmonious and stable labor relationships.
Status: In force

The Labour Contract Law of the People's Republic of China (《中华人民共和国劳动合同法》) is the primary source of labour law in China and went into effect on January 1, 2008, following a series of staff-sacking scandals in many companies. The Ministry of Human Resources and Social Security of the People's Republic of China is the responsible government department for administrating this law.[1]

The Law[edit]

While the enforcement of the law and its efficacity is sometimes questioned, the labor contract law promised to enable workers to get their employment granted only on basis of a contract, provide guidelines for standing working hour regulations of maximum 40 hours per week, non-tolerance for delayed payment of wages, relaxations in terms of paid leave etc.[2][3][4][5]

Background[edit]

The All-China Federation of Trade Unions (ACFTU) had the major role in advancing the Labor Contract Law.[6]: 67  The ACFTU drafted the law and proposed it to the National People's Congress.[6]: 67  The NPC conducted research trips to regions with labor-intensive industries like Guangdong.[6]: 67  After multiple rounds of formal discussions and informal negotiations and consultations, the law was passed.[6]: 67 

Amendment[edit]

The Standing Committee of the 11th National People's Congress adopted the decision on the Revision of the Labor Contract Law of the People's Republic of China ('Amendment'). The Amendment will take effect July 1, 2013, with the claimed intention to provide better protection to workers employed by labor dispatching agencies.[7]

Highlighted requirements include:

  • Labor dispatch agency must have a minimum registered capital of no less than RMB 2,000,000;[8]
  • Operate from a permanent business premise with facilities that are suitable to conduct its business;
  • have internal dispatch rules that are compliant with the relevant laws and administrative regulations;
  • Satisfy other conditions as prescribed by laws and administrative regulations; and
  • Apply for an administrative license and obtain approval from the relevant labor authorities.

All labor dispatch agencies established after July 1, 2013, will need to meet these new local labor law requirements before they can start the company registration process. Existing agencies that are already licensed have until July 1, 2014, to meet all local labor law requirements before renewing their business registration.[9]

See also[edit]

References[edit]

  1. ^ Hunter, Christopher; Lam, Louisa; Lin, Ketong (2008). Employment Law in China. CCH Hong Kong Limited. ISBN 978-988-17014-2-8.
  2. ^ "China's constitution appears headed for the growing list of taboo topics". South China Morning Post. Retrieved 2021-01-29.
  3. ^ "LABOR CONTRACT LAW OF THE PEOPLE'S REPUBLIC OF CHINA ORDER OF THE PRESIDENT OF THE PEOPLE'S REPUBLIC OF CHINA" (PDF).
  4. ^ Shen, Joy (2018-09-19). "Wages in China- Wide Differences Between Expat and Local Employees". FDI China. Retrieved 2021-01-29.
  5. ^ Tejada, Carlos (2009-02-04). "Labor Activist: Why China Needs Collective Bargaining Now". Wall Street Journal. ISSN 0099-9660. Retrieved 2021-01-29.
  6. ^ a b c d Li, David Daokui (2024). China's World View: Demystifying China to Prevent Global Conflict. New York, NY: W. W. Norton & Company. ISBN 978-0393292398.
  7. ^ Briefing, China (2018-03-19). "Labor Dispatch in China: Definition, Scope, and Limit". China Briefing News. Retrieved 2021-01-29.
  8. ^ "China Revises Labor Contract Law". 18 March 2013.
  9. ^ The National Law Review

External links[edit]

Retrieved from "https://en.wikipedia.org/w/index.php?title=Labour_Contract_Law_of_the_People%27s_Republic_of_China&oldid=1222354017"