Interpretation on Several Issues Concerning the Application of the Law in the Trial of Employment Disputes

Promulgated: April 16 2001
Effective: April 30 2001

Main contents: Article 1 states that when a party to a labour dispute (as defined in Article 2 of the PRC, Labour Law) does not accept the judgment of the labour arbitration commission and submits the case to the people's court, the people's court should hear the case. Article 8 states that a labour dispute will be heard in the grassroots people's court where the employer is located or where the employment contract was performed. Article 9 states that when both parties do not accept the judgment of the labour arbitration commission and submit the case to the people's court, the party that submitted first will be considered the plaintiff, although the court will render a judgment on the claims of both parties; when the parties submit the case to different people's courts, the case will be heard in the people's court that received it first. Article 10 states that in the event of a merger, the resulting work unit will be a party in labour disputes arising before the merger; in the event of a division, the work unit that effectively acted as employer will be the party in labour disputes arising before the merger. Article 11 states that when an employer recruits an employee whose labour contract has not been terminated, the original employer can include the new employer as a third party in the labour dispute which arises with the employee; the original employer can include the employee as a third party in any lawsuit for infringement brought against the new employer. Article 12 states both the project owner and contractor will be parties in a lawsuit when a labour dispute with an employee arises during the period of the contract relationship. Article 16 states that when an employee continues working for an employer after the period of the employment contract terminates and neither party objects, it will be viewed as an agreement by both parties to continue the contract in accordance with the original conditions. Article 17 states that when a party does not accept the judgment of the labour arbitration commission and submits a lawsuit to the people's court, the judgment of the arbitration commission has no legal effect. Article 18 states that when some employees accept an arbitration award while others submit a lawsuit to the people's court, the arbitration award is legally effective for the workers who accepted the award.
Related legislation: PRC, Labour Law, Jul 5 1994, CLP 1994 No.7 p21 and PRC Civil Procedure Law (2nd Revision)