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Discover the Labor Contract Law of China’s General Provisions

For both employers and employees, it’s essential to learn about the Labor Contract Law of China’s general provisions, which provide comprehensive perspectives for concluding a lawful labor contract in China. Understanding the following six general provisions is an important step to set up a sound labor relationship in China.

1. Purposes of Legislation

The Labor Contract Law of China is enacted in order to improve the labor contract system, define the rights and obligations of both parties to a labor contract, protect the legitimate rights and interests of workers and to build and develop a harmonious and stable labor relationship. 

2. Scope of the Labor Contract Law

The Labor Contract Law of China applies where employing units such as enterprises, self-employed economic organizations and private non-enterprise units within China set up labor relationships with workers through concluding, performing, modifying, revoking or terminating labor contracts with them.

3. Basic Principles

Labor contracts shall be made in accordance with the principles of lawfulness, fairness, equality, voluntariness, consensus through equal consultation, and good faith. A legitimate labor contract shall have binding force for both the employing unit and the workers, who shall perform their respective obligations stated in the labor contract.

4. Rules and Regulations

Labor rules and regulations shall be established and improved by employing units to make sure that workers are entitled to their legitimate labor rights and perform their labor obligations. 

When making or modifying the rules and regulations on important matters, such as labor remuneration, working hours, rest and vacation, insurance and welfare, the employing unites shall discuss these matters in the conference of workers or with all the workers, propose plans and suggestions and make decisions after equal consultation with the trade union or the representatives of the workers.

The trade union or the workers have the rights to put forward their opinions to the employing unit on the important rules and regulations or decisions which they believe are inappropriate. In such cases the employing unit shall modify these rules, regulations or decisions through consultation with them.

Public announcement shall be made by the employing unit to inform the workers on regard of the rules and regulations, and the decisions on important matters.

5. A Tripartite Mechanism for Coordination of Labor Relationships

 A sound tripartite mechanism for coordination of labor relationships shall be made by the administrative department of labor of the people’s government together with the representatives of the trade union and the enterprise, to coordinate labor relationships.

6. A Collective Consultation Mechanism

The trade union shall guide and assist the workers in establishing their labor contracts with the employing units and performing their labor obligations, and set up a collective consultation mechanism with the employing unit to protect the lawful rights and interests of workers.

It’s helpful for both the employers and employees to understand the Labor Contract Law of China’s general provisions and to avoid future disputes when establishing their labor relationship. Want to discover more about the Labor Contract Law of China? There is a detailed guide provided by INS to help you understand it thoroughly.

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DATE October 3, 2019
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