China regulations clarify Labor Contract Law
- China
- 09/19/2008
The State Council of China on Thursday issued regulations implementing ambiguous provisions of the Labor Contract Law that took effect at the beginning of this year. Among other clarifications, the regulations provide that contracts without a termination date do not have a lifetime term, instead specifying the circumstances in which employers or employees may unilaterally terminate. Although the law is viewed as a major advancement for employee rights, employers have complained that it has increased operational costs. The law requires workers to have written employment contracts, establishes a right to severance pay, sets a minimum wage and limits the amount of overtime that companies may ask employees to perform. Draft regulations were released in May. Following public comment, the final regulations were approved September 3 by the State Council, which is China’s Cabinet.
The law was adopted last June by the Standing Committee of China’s National People’s Congress amid revelations that labor officials had failed to report the enslavement of hundreds of people at brick kilns in Shanxi and Henan provinces. Criminal charges were brought against government officials, and a State Council conference chaired by Chinese Premier Wen Jiabao said that those who had enslaved workers or illegally employed children would be severely punished.
