China Law & Practice

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Employers almost certain to lose at China labour tribunals

Companies must get their documentation in line

Date: 30 June 2009

Keywords (click to search): employment labour Employment Contract Law web-seminar unlawful termination

Employees are winning almost all unfair dismissal cases at labour tribunals across mainland China, and there may be political considerations in play.

The PRC Employment Contract Law, which took effect on January 1 2008, introduced the right to low-cost labour arbitration. Since then, there has been a dramatic rise in the number of cases handled by labour tribunals.

“What this means is that the arbitrators may be less likely to spend the time considering the legal merits and in our experience will be much more inclined to try to help the parties negotiate a quick settlement,” said Joseph Deng, special counsel with Baker & McKenzie in Beijing, during a China Law...

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