PRC Labour Union Law (Revised)

The All-China Federation of Trade Unions and its various labour union organizations represent the interests of employees and protect the legitimate rights and interests of employees in accordance with the law.

Article 3: All manual and mental workers in enterprises, institutions and authorities within the territory of China who rely on wages as their main source of income have the right to participate in and form labour union organizations in accordance with the law, regardless of their nationality, race, sex, occupation, religious beliefs or education level. No organization or individual may obstruct and restrict such right.

Article 4: Labour unions must abide by and safeguard the Constitution, regard the Constitution as the fundamental standard for their activities, set economic construction as their central task, adhere to the socialist road, adhere to the people's democratic dictatorship, adhere to the leadership of the Chinese Communist Party, uphold Marxism, Leninism, Mao Zedong Thoughts and Deng Xiaoping Theory, adhere to reform and opening up, and carry out labour union work independently and autonomously in accordance with the articles of association of labour unions.

The national labour unionist representative congress shall formulate or amend the articles of association of the All-China Federation of Trade Unions. Such articles of association may not contravene the Constitution and laws.

The State shall protect the legitimate rights and interests of labour unions.

Article 5: Labour unions shall organize and educate employees to exercise their democratic rights pursuant to the provisions of the Constitution and laws, participate in the role of nation's master through various channels and forms in the management of national affairs, economic and cultural institutions and social affairs, assist the people's governments in work development, and uphold the people's socialist democratic dictatorship led by the working classes and on the basis of the worker-peasant alliance.

Article 6: Protecting the legitimate rights and interests of employees is the basic duty of labour unions. While upholding the overall interests of the whole nation, labour unions shall, at the same time, represent and safeguard the legitimate rights and interests of employees.

Labour unions shall coordinate labour relations and safeguard the labour rights and interests of enterprise employees through consultation on the basis of equality and collective contract system.

Labour unions shall, in accordance with the provisions of the law, organize employees through employees' representative congresses or other means to participate in their work unit's democratic decision making, democratic management and democratic supervision.

Labour unions must liaise closely with employees, listen to and reflect their views and demands, act with concern for their livelihood, assist them in overcoming difficulties and work for them wholeheartedly.

Article 7: Labour unions shall mobilize and organize employees to actively participate in economic construction and to endeavor to complete their production and work assignments.

Labour unions shall educate employees to raise the level of their ideology, ethics, technical and professional skills and scientific culture, and shall build teams of employees who have ideals, ethics, culture and discipline.

Article 8: The All-China Federation of Trade Unions shall, in accordance with the principles of independence, equality, mutual respect and mutual non-interference in internal affairs, strengthen friendly cooperation relations with the labour union organizations of various other nations.

PART TWO: LABOUR UNION ORGANIZATIONS

Article 9: Labour union organizations at all levels shall be established in accordance with the principle of democratic centralism.

Labour union committees at all levels shall be elected democratically by members' assemblies or members' representative congresses. The close relatives of principle administrators of an enterprise shall not be candidates for membership in the primary labour union committee of the enterprise.

Labour union committees at all levels shall be responsible to and shall submit work reports to members' assemblies or members' representative congress at their respective levels and shall be subject to their supervision.

Labour union members' assemblies and members' representative congress shall have the right to replace or dismiss their elected representatives or committee members.

Labour union organizations at a higher level shall lead labour union organizations at a lower level.

Article 10: If a labour union of an enterprise, institution or authority has 25 or more members, it shall establish a primary labour union committee. If the number of members is less than 25, it may establish a primary labour union committee by itself or jointly with the members in two or more units, or elect one organizer to organize the members to carry out activities. If there are many female employees, a labour union female employees committee may be established to work under the leadership of the labour union at the same level. If there are relatively few female employees, a female employee member may be placed on the labour union committee.

In towns and urban communities where there are many enterprise employees, a federation of primary labour unions may be established.

Localities at county level or above shall establish a local all-level federation of labour unions.

An industry or industries of a similar nature may establish a national or local industry-specific labour union, as necessary.

A unified All-China Federation of Trade Unions shall be established in China.

Article 11: The establishment of a primary labour union, local all-level federation of labour unions or a national or local industry-specific labour union must be reported to the labour union organization at the next higher level for approval.

A higher level labour union may send its members to assist and provide guidance to the employees of an enterprise in establishing a labour union, and no work unit or individual may obstruct such effort.

Article 12: No organization or individual may arbitrarily abolish or merge labour union organizations.

A primary labour union shall be abolished if the enterprise in which it is established terminates or the institution or authority in which it is established is abolished, and the event shall be reported to a labour union at a higher level.

Where a labour union is abolished in accordance with the preceding provisions, its members may retain their membership subject to the specific procedures formulated by the All-China Federation of Trade Unions.

Article 13: In an enterprise or institution with over 200 employees, the labour union may create a full-time chairperson position. The number of full-time staff of the labour union shall be determined by mutual agreement between the labour union and the enterprise or institution.

Article 14: The All-China Federation of Trade Unions, local all-level federations of labour unions and industry-specific labour unions shall have the legal person status of a social organization.

Primary labour union organizations complying with legal person requirements as stipulated by the Civil Law General Principles shall acquire legal person status of a social organization persuant to the law.

Article 15: The term of office of a primary labour union committee shall be three or five years. The term of office of committees of all levels of local labour union federations and industry-specific labour unions shall be five years.

Article 16: A primary labour union committee shall periodically convene a meeting of the members' assembly or the members' representative congress to discuss the major issues that determine the work of the labour union. If proposed by the primary labour union committee or over one third of the labour union members, an ad hoc meeting of the members' assembly or the members' representative congress may be convened.

Article 17: During their terms of office, a labour union chairman and vice chairman shall be prohibited from arbitrarily transferring jobs. Where job transfer is necessary, approval shall be obtained from the labour union committee at the respective level and the labour union at the higher level.

The dismissal of chairperson or vice chairperson of a labour union must be discussed in the members' assembly or the members' representative congress, and unless the dismissal is passed by over half of the members or members' representatives in the members' assembly or the members' representative congress, the chairperson or vice chairperson shall not be dismissed.

Article 18: On the date a full-time chairperson, vice chairperson or committee member of a primary labour union takes office, the term of his labour contract shall be automatically extended for a period equivalent to his term of office. On the date of a non-full-time chairperson, vice chairperson or committee member of a primary labour union takes office, his labour contract shall be automatically extended to the ending date of his term of office if the remaining term of the labour contract is shorter than his term of office. However, this shall not apply if he commits a serious fault or reaches mandatory retirement age during the term of office.

PART THREE: RIGHTS AND OBLIGATIONS OF A LABOUR UNION

Article 19: If an enterprise or institution violates the employees' representative congress system and other democratic management system, the labour union has the right to demand rectification and to protect the rights to democratic management of the employees.

With regard to matters that are required by laws and regulations to be submitted to the employees' assembly or the employees' representative congress for review, adoption and decision, the enterprise or institution shall comply with the law.

Article 20: Labour unions shall assist and provide guidance to employees in signing labour contracts with enterprises and institutions that implement enterprise management.

Labour unions shall, on behalf of employees, negotiate on the basis of equality and sign collective contracts with enterprises and institutions that implement enterprise management. The draft of a collective contract shall be submitted to the employees' representative congress or to all employees for discussion and adoption.

When a labour union signs a collective contract, the labour union at a higher level shall give support and assistance.

If an enterprise breaches a collective contract and violates the labour rights and interests of the employees, the labour union may, in accordance with the law, demand the enterprise to assume liabilities. Where a dispute arising from the performance of a collective contract cannot be resolved through consultation, the labour union may submit the dispute to a labour dispute arbitration organization for arbitration, or institute an action with a people's court if the arbitration organization refuses to accept the case or if the labour union is dissatisfied with the arbitral award.

Article 21: A labour union that regards an enterprise's or an institution's punishment of an employee as inappropriate shall have the right to put forward its views on the matter.

When an enterprise terminates an employee labour contract unilaterally, it shall first notify the labour union of its reasons. Where the labour union believes that the enterprise is in violation of laws and regulations and the relevant contract, and request that the case be re-investigated and dealt with anew, the enterprise shall consider the opinion of the labour union, and shall notify the labour union of the result of the dealing in writing.

Where an employee believes that his rights and interests are infringed by the enterprise and applies for labour dispute arbitration, or institute an action with a people's court, the labour union shall give support and assistance.

Article 22: If an enterprise or institution infringes on the labour rights and interests of employees in violation of labour laws and regulations as in the following circumstances, the labour union shall deal with the enterprise or institution on behalf of the employees and demand the enterprise or institution to implement corrective measures. The enterprise or institution shall look into the case and handle it accordingly and shall give a reply to the labour union. If the enterprise or institution refuses to rectify the matter, the labour union may request the local people's government to handle the case in accordance with the law:

(1) it withholds or reduces the employee's wage;

(2) it fails to provide labour safety and hygiene conditions;

(3) it extends working hours arbitrarily;

(4) it infringes on the special rights and interests of female employees and minor employees; and

(5) it commits other serious infringements on the labour rights and interests of employees.

Article 23: A labour union shall, pursuant to State regulations, supervise the work conditions and the simultaneous design, construction and operation of safety and health facilities with the main project for an enterprise that is newly built or expanded or undergoing technological renovation. The enterprise or department in charge shall conscientiously consider the views put forward by the labour union, and shall notify the labour union in writing of the result of the dealing.

Article 24: If a labour union discovers that an enterprise instructs or forces workers to work under risks in violation of rules and regulations, or if major events and hidden dangers or occupational hazards are discovered during the production process, the labour union has the right to propose solutions, and the enterprise shall promptly look into the case and respond. If the labour union discovers that the personal safety of employees is in jeopardy, it has the right to suggest to the enterprise to organize an evacuation of the employees from the danger zone, and the enterprise must decide promptly on measures to handle the matter.

Article 25: A labour union has the right to investigate an enterprise's or institution's infringement on the legitimate rights and interests of employees and the relevant work unit shall provide assistance.

Article 26: Investigation into employees' work-related casualties or injuries and other problems seriously endangering the health of employees must involve the participation of the labour union. The labour union shall present to the relevant authorities its opinion on handling, and has the right to demand pursuing the liability of the persons directly responsible and other responsible persons. The opinion presented by the labour union shall be promptly considered and given a reply.

Article 27: If an enterprise or institution is subject to suspension of work or a slowdown, the labour union shall negotiate with the enterprise or institution or other relevant authority on behalf of the employees, reflect the views and demands of the employees and propose a resolution. The enterprise or institution shall satisfy the reasonable demands of the employees. The labour union shall assist the enterprise or institution in their work so as to resume production and work order as quickly as possible.

Article 28: Labour unions shall participate in enterprises' mediation of labour disputes.

Local labour dispute arbitration organizations shall consist of labour unionists at the same level.

Article 29: Labour union federations at or above county level may provide legal services to affiliated labour unions and employees.

Article 30: Labour unions shall assist enterprises, institutions and authorities in carrying out collective welfare projects and handling wages, labour safety, health and social security matters for employees.

Article 31: Labour unions shall educate employees to approach their work and care for the properties of the State and enterprises with the attitude of being the nation's master, organize employees to carry out mass campaign for rationalization proposals and technical renovations and to undertake after-work cultural and technical studies and occupational training, and organize employees to hold recreational and sports activities.

Article 32: Upon entrustment of the government, a labour union shall, jointly with other relevant departments, carry out the tasks of selecting, commending, cultivating and managing model workers and advanced producers (workers).

Article 33: State authorities shall listen to the opinions of labour unions when drafting or amending laws, regulations and rules that directly relate to the immediate interests of employees.

When all levels of people's governments at or above the county level formulate national economic and social development plans, and important issues relating to the interests of employees arise, they shall listen to the opinions of the labour unions at the same level.

When all levels of people's governments at or above the county level and their relevant departments study and formulate important policies or measures on employment, wages, labour safety and health, social security and other policies or measures relating to the immediate interests of employees, they shall draw the participation of the labour unions at the same level into the research work and listen to the opinions of the labour unions.

Article 34: All levels of local people's governments at or above the county level may, through meetings or other appropriate means, inform the labour unions at the same level of the respective government's major work plans and the administrative measures relating to the work of labour unions, and shall study and determine the ways of handling the opinions and demands of the employees as reflected through the labour unions.

The labour administration departments of people's governments at all levels shall, jointly with the labour unions at the same level and the representatives of enterprises, establish mechanisms for trilateral consultation on labour relations, and study and determine the ways of handling important issues regarding labour relations.

PART FOUR: PRIMARY LABOUR UNION ORGANIZATIONS

Article 35: In a State-owned enterprise, the employees' representative congress shall be the basic form by which the enterprise implements democratic management and shall be the body through which employees exercise their democratic management power in accordance with the provisions of the law.

The labour union committee of a State-owned enterprise shall be the working body of the employees' representative congress and responsible for the daily operation of the employees' representative congress, and shall supervise and procure the implementation of the resolutions of the employees' representative congress.

Article 36: The labour union committee of a collectively owned enterprise shall support and organize the employees to participate in democratic management and supervision, and shall safeguard the powers of the employees to elect and dismiss administrative personnel and decide on major issues regarding operation and management.

Article 37: The labour union committee of an enterprise or institution not provided for in the provisions of Articles 35 and 36 shall, in accordance with the provisions of the law, organize the employees to participate in the democratic management of the enterprise or institution by means appropriate to the enterprise or institution.

Article 38: An enterprise or institution shall listen to the opinions of the labour union when studying important issues regarding operation, management and development; and meetings on wages, welfare benefits, labour safety and health, social security and other matters relating to the immediate interests of employees must have the participation of the labour unionists.

The enterprise or institution shall support the labour union in carrying out its work in accordance with the law, and the labour union shall support the enterprise or institution in the exercise of its rights to operation and management.

Article 39: Representatives of employees in the board of directors and the board of supervisors of a company shall be elected in accordance with the provisions of the Company Law.

Article 40: A primary labour union committee convening a meeting or organizing activities for employees shall do so outside production or working hours. If it is necessary to occupy production or working hours, it shall obtain the consent of the enterprise or institution in advance.

If a non-full-time member of the primary labour union uses production or working hours to attend meetings or carry out labour union work and the hours so used do not exceed three working days per month, his wage shall be paid as usual and his other benefits shall not be affected.

Article 41: The wages, bonuses and subsidies of full-time staff members of the labour union committee of an enterprise, institution or authority shall be paid by the work unit they are in. They are entitled to the same social security and other welfare benefits as other employees of the work unit.

PART FIVE: LABOUR UNION OPERATING FUNDS AND ASSETS

Article 42: The sources of labour union operating funds shall be as follows:

(1) membership dues paid by unionists;

(2) monthly allocations of 2% of the total wages of all of its employees paid to a labour union as funds by the enterprise, institution or authority that established the labour union organization;

(3) income handed over by enterprises and institutions subordinate to the labour union;

(4) people's government subsidies;

(5) other income.

The operating funds specified in Item (2) of the preceding paragraph shall be allocated before tax.

Labour union operating funds shall be used primarily in services to employees and labour union activities. Specific procedures for the use of such funds shall be formulated by the All-China Federation of Trade Unions.

Article 43: If an enterprise or institution delays or withholds payment of labour union operating funds without any appropriate reasons, the primary labour union or the labour union at the higher level may apply to a local people's court for a payment order. If the enterprise or institution refuses to comply with the payment order, the labour union may apply to the people's court for enforcement of the order in accordance with the law.

Article 44: A labour union shall work out its own budget and final accounts as well as its own fund inspection and supervisory systems in accordance with the principle of independent funding.

Labour unions at all levels shall establish fund inspection committees.

Details of fund income and expenditure of labour unions at all levels shall be inspected by the fund inspection committees at the same level, reported to the members' assemblies or members' representative congress on a regular basis and shall be subject to supervision. A labour union members' assembly or members' representative congress shall have the right to put forward suggestions on the use of labour union funds.

The use of labour union operating funds shall be subject to the supervision of the State in accordance with the law.

Article 45: People's governments at all levels, enterprises, institutions and authorities shall provide the necessary facilities, venues and other material requirements of labour union organizations for handling office matters and arranging union activities.

Article 46: No organization or individual may occupy, misappropriate or arbitrarily allocate a labour union's assets, funds or immovable property allocated by the State for use by the labour union.

Article 47: Where an enterprise or institution to which a labour union is subordinate serves workers, their subordinate relationship may not be altered arbitrarily.

Article 48: Persons retiring from positions with labour unions at county level or above shall receive the same benefits as persons working for the State authorities.

PART SIX: LEGAL LIABILITY

Article 49: A labour union has the right to request a people's government or a relevant authority to deal with, or institute an action with a people's court against, any party who has infringed on its legitimate rights and interests in violation of the provisions of this Law.

Article 50: If a party, in violation of Articles 3 and 11 hereof, obstructs employees' lawful participation in and organization of labour union, or obstructs the assistance and guidance of a labour union at the higher level to the employees in establishing a labour union, the labour administration department shall order that party to rectify the matter. If that party refuses to rectify the matter, the labour administration department shall submit the case to a people's government at or above county level for handling. Where obstruction is taken in the form of violence or threat, resulting in serious consequences and constitutes a criminal offence, criminal liability shall be pursued in accordance with the law.

Article 51: If a party, in violation of the provisions of this Law, takes vindictive action against a labour union staff member who performs his duties in accordance with the law by transferring him away from his present position without any appropriate reasons, the labour administration department shall order that party to rectify the matter and restore that staff member to his original position. Where the action has caused losses, that party shall compensate for the losses.

If a party insults, defames or inflicts bodily harm on a labour union staff member who performs his duties in accordance with the law, and such action constitutes a criminal offence, criminal liability shall be pursued. If the action does not constitute a criminal offence, it shall be punished by the public security authority in accordance with the Law and Order Administration Penal Regulations.

Article 52: If any of the following occurrs as a result of a violation of the provisions of this Law, the labour administration department shall issue an order to restore his employment and to make up for the payment he is to receive for the period in which his labour contract is terminated, or to provide a compensation equal to two times of his annual income:

(1) the employee's labour contract is terminated because of his participation in labour union activities; or

(2) the labour union staff member's labour contract is terminated due to his performance of the duties provided herein.

Article 53: If any of the following occurrs as a result of a violation of the provisions of this Law, a people's government at or above county level shall order rectification and handle the matter in accordance with the law:

(1) obstruction of a labour union's organization of employees to exercise their democratic rights through a general assembly of employees and other means;

(2) unlawful abolition or merger of labour union organizations;

(3) obstruction of a labour union's participation in the investigation on and handling of an employee's work-related casualty or injury and other infringement on the legitimate rights and interests of employees; or

(4) refusal to engage in consultation on the basis of equality without any appropriate reasons.

Article 54: If a party in violation of Article 46 hereof encroaches on labour union operating funds and properties and refuses to return the same, the labour union may institute an action with a people's court to demand the return of the same and compensation of the losses.

Article 55: If a labour union staff member violates the provisions of this Law and causes damage to the rights and interests of employees or the labour union, he shall be ordered to rectify the matter by a labour union at the same level or a labour union at the higher level, or shall be subject to penalty. If the case is serious, his membership shall be revoked in accordance with the articles of association of the All-China Federation of Trade Unions. If losses are caused, he shall be liable for compensation. If the case constitutes a criminal offence, criminal liability shall be pursued in accordance with the law.

PART SEVEN: SUPPLEMENTARY PROVISIONS

Article 56: The All-China Federation of Trade Unions shall, jointly with the relevant authorities, formulate specific procedures for the implementation of this Law on labour unions of authorities.

Article 57: This Law shall become effective as of the date of promulgation. The PRC Labour Union Law promulgated on 29 June 1950 by the Central People's Government shall be repealed simultaneously.