Labour Contract Law of the People's Republic of 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-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]

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
CommencedJanuary1, 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 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.[2][3][4][5]

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.[6]

Highlighted requirements include:

  • Labor dispatch agency must have a minimum registered capital of no less than RMB 2,000,000;[7]
  • 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.[8]

See also

References
  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. Briefing, China (2018-03-19). "Labor Dispatch in China: Definition, Scope, and Limit". China Briefing News. Retrieved 2021-01-29.
  7. "China Revises Labor Contract Law". 18 March 2013.
  8. The National Law Review
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