Government approval may be required for mass layoffs

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clpstaff &clp articles

Move is part of wider labour law developments

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 (中华人民共和国劳动合同法) (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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