Appreciating true intent

November 09, 2010 | BY

clpstaff &clp articles

With a new interpretation released by the people's court, there is further fine-tuning to the handling of labour dispute cases. In addition to offering new rules on the burden of proof and reining in employees from liberally suing employers, the new interpretation importantly recognises a consensus between parties that declare their true intent

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On September 14 2010, the Supreme People's Court released the Interpretation on Several Issues Concerning the Application of the Law to Trials of Employment Disputes (3) (关于审理劳动争议案件适用法律若干问题的解释（三）) (Interpretation III). In the same vein as Interpretation I and Interpretation II, Interpretation III also focuses on solving difficult issues arising in the practice of handling labour disputes, especially class action cases. The key points of Interpretation III are that for the first time, the people's court recognises the consensus reached by the parties to the employment contract that declare their true intent and it sets a limitation to workers from maliciously abusing their right to sue their employers.