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Line 1: {{Short description\|Primary source of labour law in China}} 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.▼ {{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.<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==~~ 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\|date=July 2013}} 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\|date=July 2013}} == The Law == 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.\|date=July 2013}} 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.\|date=July 2013}} 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> ==~~History~~ Background == 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}} 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\|date=July 2013}} The new law is to China's overall economy and regulation.{{Citation needed\|date=July 2013}} == Amendment ==▼ 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.{{According to whom\|date=July 2013}} 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, ~~intended~~with the claimed intention to provide better protection to workers employed by labor dispatching agencies. <ref>{{~~Citation~~Cite ~~needed~~web\|last=Briefing\|first=China\|date=~~July~~2018-03-19\|title=Labor ~~2013~~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>▼ Highlighted requirements include:▼ ~~Compared to the old contract law issued in 1994, the new law is supposed to provide greater [[job security]].{{According to whom\|date=July 2013}}~~ a. [[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 that are suitable to conduct its business;▼ c.* 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▼ e.* Apply for an administrative license and obtain approval from the relevant labor authorities.▼ 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>▼ 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\|date=July 2013}} 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\|date=July 2013}} 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.{{According to whom\|date=July 2013}} Small and medium enterprises in particular have already particularly felt the effects of the law. {{Citation needed\|date=July 2013}} 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\|date=July 2013}} About 98 percent of Korean enterprises in China are independent small and medium firms.{{Citation needed\|date=July 2013}} Other companies reacted to the law by proactively firing employees who would have come under the new guidelines.{{Who\|date=July 2013}} In October, US-based retail giant [[Wal-Mart]] fired about 100 employees at a sourcing center in China.{{Citation needed\|date=July 2013}} The company said the layoff was part of its global restructuring. LG and Olympus have respectively announced plans to lay off employees.{{Citation needed\|date=July 2013}} [[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\|date=July 2013}} ▲==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 1, 2013, intended to provide better protection to workers employed by labor dispatching agencies. {{Citation needed\|date=July 2013}} ▲Highlighted requirements include: ▲a. Labor dispatch agency must have a minimum registered capital of no less than RMB 2,000,000;<ref>http://www.china-briefing.com/news/2013/03/18/china-revises-labor-contract-law.html</ref> ▲b. 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; ▲d. 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. == See also == ▲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> * ''[[Labour Law of the People's Republic of China]]'' ==~~See~~ ~~also~~References == {{Reflist\|2}}▼ * == 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== ▲[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 China}} [[Category:Laws of China]] [[Category:Labor relations in China]] ~~[[Category:Labour law by country]]~~ [[Category:Chinese labour law]]