State Council confirms reporting requirements for mass lay-offs

Companies must inform the government of their plans for multiple lay-offs, and talk to labour unions at least 30 days in advance, the State Council has reiterated.

The 2007 Employment Contract Law (ECL) says that lay-offs must be reported to local labour authorities. But near the end of 2008, local provincial authorities decided to revise their own rules and made it mandatory for companies to get approval for lay-offs of more than 40 employees.