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China labor law- the Labor Law of the People’s Republic of China : party 1

Time:2014-03-13 Hit:955

China labour law- the Labor Law of the People's Republic of China: part 1

The Labor Law of People's Republic of China (hereinafter referred to as China Labor Law) is adopted in the year of 1994 by NPC.

The general principle of China Labor law: 

The China Labor law aims to protect the legal rights and interests of workers and to establish and safeguard the labour system that adaptable to the socialist market economy of China. It applies to all the companies and economic organizations within the territory of China except the government employee. 

It's stated that a worker shall enjoy the right to equal opportunities of employment, to obtain labour remuneration, to rest and have holidays, to receive labour safety and health protection and to enjoy social insurance and welfare.

All the workers stand equal regardless of nationality, race, gender, or belief when recruiting employees; the applicant shall not be refused as a result of gender, race, nationality, or religious.

Recruitment of minors under sixteen is prohibited unless in the fields of sports or the arts. 


Labour contracts:

 In order to establish a work-based relationship and define the rights and obligations of the workers and the employer, a labour contract is required to be concluded within one month after a person has been hired. If the employer fails to enter a contract within one month, the employer shall pay the employee double wages for each month's delay of the first year. 

 An employer may require employees to be subject to a probationary period. The maximum length of a probationary period is six months.

The labour contract is classified as either a contract with a fixed term or an indefinite term. Upon the termination of the fixed term, if another fixed-term contract is concluded consecutively, the employee is entitled to require an indefinite term contract when the second fixed term expires.

According to China Labor Law, it's not easy for the employer to fire an employee unless either of the following circumstances is satisfied:

1. It is proved that the employee failed to meet the employment requirements within the probationary period;

2. Where the employee seriously violated labour discipline or the employee unit's rules and regulations;

3. Where the employee seriously derelicts his duty and engages in malpractice for selfish ends, causing substantial loss to the employing unit's interests

4. The employee is under investigation and determined to be criminally responsible. 

 Under article 26 of the Labor Law, the employer may terminate the labour contract with 30 days' prior notice in any of the following circumstances:

1. Where an employee is unable to do his original work or any new work arranged by the employing unit after the completion of medical treatment for illness or injury which is not suffered at work;

2. Where an employee is unqualified for his job and remains unqualified even after receiving training or being transferred to another post.

3. Where a labour contract can no longer be implemented due to major changes in the objective conditions that were relied on as the basis for concluding the labour contract and an agreement to amend the labour contract cannot be reached by both parties through consultation.

Recruitment of foreign employees:

Recruitment of foreign employees, including the residents of Taiwan, Hong Kong, and Macau, the enterprise must apply for the approval of the local labour administration, it may be difficult to obtain because of a foreign investment enterprise may be hard-pressed to prove local unavailability of personal, especially if no unique qualifications are required for the positions sought to be filled as it shall first give priority to the Chinese citizen of the position.


The wages shall be paid based on the equal pay for equal work and shall not be less than the minimum wages determined by the government at the provincial level. The minimum wage standards are determined in the light of minimum local living costs, the index of the consumer goods prices, social insurance payments of employees, the average wages of employees, the status of economic development and the labour productivity, the employment situation, the differences in the levels of economic development between different regions. The minimum wage standard shall be adjusted at least every two years. The minimum wage standard shall also apply for an employee during the probationary, training, or internship period. The minimum wage does not include overtime payment, allowance for working during the extreme temperatures or underground, as well as in toxic or hazardous environments, or any other social security insurance and welfare benefits.  

The wages shall be paid to workers in cash on a monthly basis. Deduction or delay of wage payment to a worker without proper reason shall not be permitted.

The wages shall be paid in accordance with the law for official public holidays, for marriage or bereavement leave, and for the period of participation in social activities in accordance with the law.




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