Page 99 - DMGT516_LABOUR_LEGISLATIONS

Labour Legislations

Notes 4.2 Labour Laws in China

Scope and Application of Chinese Law

The Central Labour Law were applicable to the whole territory of the People Republic of China,
that there were no areas or zones or industries or enterprise that were exempted from these
laws – or where any relaxation was permitted in these laws.

Provinces and local bodies have the right to issue Regulations but all these Regulations wherever
they are promulgated have to be in conformity with the National Law. All regulations, etc.
have validity only within the four corners of the National Law, therefore, there were no special
laws or relaxations for the Special Economic Zones, or the ‘foreign invested ventures’ or joint
ventures; there are detailed “Regulations” laid down to regulate employment plans, recruitment,
the signing of labour contracts with individual employees, the signing of collective contracts
with Trade Unions in the enterprise, conditions for “fi ring”, for retrenchment, responsibility to
provide basic living allowance, etc., to the laid off and retrenched etc.

Chinese Labour Contract System

Article 11 says that Labour contract system shall be implemented to the employees recruited by
the foreign invested enterprise. The foreign invested enterprise must conclude the labour contract
with its recruited employees according to the law, and on the basis of equality, self willingness,
coordination and consistency. The labour contract must be in accordance with relevant laws and
regulations of the PRC and its contents shall include:
1. Quantity and quality of the assigned work, or the working task that should be
accomplished
2. The labour contract duration
3. Payment insurance and other welfare
4. Working conditions and protection

5. Working disciplines, reward and punishment, terms of dismissal and resignation
6. The circumstance under which the labour contract be terminated
7. Liabilities for those who break the labour contract

8. Other terms both parties think it necessary to put in the contract.
The labour contract shall be written in the Chinese language, and it may also be in foreign
languages. But when the contents of the Chinese version are not consistent with that of the
foreign version, the former shall be regarded as the criterion.
The labour contract, when concluded is a legal document and binding upon both parties in strict
compliance with it. If either party demands a revision of the contract, it must secure the consent
of the other party through consultation, prior to the revision. When the contract expires, it may
be renewed on the basis of mutual agreement.

The standard text of the labour contract shall be filed with the relevant labour departments,
personnel administration and Shanghai Confederation of Trade Unions, while these departments
may supervise and examine the implementation of the contract.

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