Supreme Court improves workers' rights

July 06, 2012 | BY

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The Supreme People's Court has published a draft Interpretation that could increase compensation for workers dismissed during appraisals and award compensation for using non-compete agreements

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The Court published a draft of its fourth Interpretation on Several Issues Concerning the Application of Law in Hearing Labour Dispute Cases (最高法院关于审理劳动争议案件适用法律若干问题的解释（四）) on June 27.

The 18-clause draft for comment strongly favours employees and states that the long-standing practice of terminating contracts based on the principle of “last-one-cut” may not be compatible with the existing PRC Employment Contract Law (中华人民共和国劳动合同法).