What Is China’s Labor Contract Law?
A broad set of standards on employment practices that took effect in 2008 after an unusually lengthy debate to safeguard worker rights and boost job security. Some businesses blame it for inflating wages.What Is Happening?The labor ministry has been consulting academics, lawyers and businesses on ways to revise the law to make it easier for businesses to hire and fire workers. The focus is on regulations related to open-ended contracts and severance pay.
What Is at Stake?
The law’s most contentious regulations include one that gives employees the right to request an open-ended contract after 10 consecutive years at a company or two consecutive fixed-term contracts. Another contested provision states that laid-off workers are entitled to one month’s salary for every year of employment.
What Is Next?
Observers say the government may publish draft amendments for public comment next year. They would eventually go to the rubber-stamp parliament for approval.