Government approval may be required for mass layoffs

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.