Employers, prepare for tribunal trouble

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clpstaff &clp articles

Employers in China are facing more labour arbitrations as employees take advantage of free tribunals and increased rights. Foreign companies are at most risk. They must keep good documentation and pay close attention to balancing internal rules and local law.

By Joanna Law.

This year marks mainland China's 31st year of reform, but Guangdong province is showing few signs of celebration. Tales of mass lay-offs, factory shut-downs and labour disputes have become some of the most widely-featured stories in the local news media.

    Known as China's manufacturing hub, Guangdong has been particularly badly hit. Shenzhen's gross domestic product growth slid from 14.6% to 12.1% in 2008, and is expected to drop to 10% this year.

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