Government approval may be required for mass lay-offs

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    clpstaff &clp articles

    Lower minimum wage also on the horizon

    Companies throughout China may soon have to seek government approval for mass lay-offs. The minimum wage could also be decreased in order to prevent rising unemployment and social instability.

    The Employment Contract Law (ECL), which came into force on January 1 2008, says companies must report lay-offs of more than 20 workers to their local labour authorities.

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