The global economic downturn has impacted employers in China and, as with their U.S. counterparts, some of them are conducting mass layoffs in order to reduce costs. In addition to complying with layoff-related requirements under the PRC Labor Law, employers in China should take note of new local laws related to layoffs, and take steps to ensure compliance therewith.
Continue Reading...Since 2008, China has taken into effect three new Labor laws: Labor Dispute's Mediation and Arbitration Law, Employment Agreement Law, and Implementation Regulations on the Employment Agreement Law. These new labor laws are measures taken by the government to assist in China's transition of economy and society. The new laws will strengthen the protection of employee's legal rights and balance the relationship between the employer and the employee. They will severely punish the employer who violates any labor regulations, like the lack of written employment agreements, violation of the prevailing wage standard, postponed or reduced wage payments, or wrongful employment termination. In particular, foreign investors in China should pay close attention to these changes.
Continue Reading...After promulgating the Labor Contract Law, the Chinese legislature enacted the Law on Labor Dispute Mediation and Arbitration (hereinafter referred to as “the New Law”) to further safeguard the rights and interests of worker in procedural matters. The New Law took effect on May 1, 2008.
As the first law that specially regulates labor disputes between employers and employees in China, this New Law imposes more burdens and obligations on employers, making it seem pro-worker. But, is that an accurate perception?
Continue Reading...The recently effective PRC Labor Contract Law contains crucial new provisions not present in the existing Labor Law. The major changes and additions are as follows:
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