Labor Law

The PRC Law on the Mediation and Arbitration of Employment Disputes is another important step made by the Standing Committee of the PRC National People's Congress after its promulgation of the Labour Contract Law in June 2007. Both this and the Labour Contract Law are intended to better protect the legitimate rights and interests of employees and employers, with the latter in respect of the substantive law and the former in respect of the procedural system.

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Calculation of working hours and hourly wage specified.

The Circular elaborates on the calculation of working days and hours and pro rata calculation of daily wage and hourly wage.

The Circular elaborates on the calculation of working days and hours and pro rata calculation of daily wage and hourly wage.

With reports emerging of mass layoffs preceding its implementation, and factory closures or relocations to cheaper jurisdictions afterwards, the newly-effective Labour Contract Law has drawn much criticism. Large employers complain that it adds unreasonable costs, while employees are disappointed that the Law does not offer as many benefits for them as compared to the original draft. But is the Law as it stands a workable compromise, and can it be enforced in its current form prior to the release of implementing regulations?

With reports emerging of mass layoffs preceding its implementation, and factory closures or relocations to cheaper jurisdictions afterwards, the newly-effective Labour Contract Law has drawn much criticism. Large employers complain that it adds unreasonable costs, while employees are disappointed that the Law does not offer as many benefits for them as compared to the original draft. But is the Law as it stands a workable compromise, and can it be enforced in its current form prior to the release of implementing regulations?

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