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Labor Contract Law of the People's Republic of China

Updated: 2014-07-11

Adopted at the 28th Session of the Standing Committee of the 10th National People'S Congress of the People'S Republic of China on June 29, 2007 and shall enter into force as of January 1, 2008

Contents

Chapter I General Rules

Chapter II Conclusion of Labor Contracts

Chapter III Performance and Alteration of Labor Contracts

Chapter IV Cancellation and Termination of Labor Contracts

Chapter V Special Rules

Section 1 Collective Contracts

Section 2 Labor Dispatch

Section 3 Non-Full-Time Labor

Chapter VI Supervision and Inspection

Chapter VII Legal Liabilities

Chapter VIII Supplementary Rules

Chapter I General Rules

Article 1 This Law is enacted and formulated in order to improve the labor contract system, specify the rights and obligations of both parties to the labor contracts, protect the legitimate rights and interests of the workers and construct and develop a harmonious and steady employment relationship.

Article 2 The establishment of employment relationship between enterprises, individual economic organizations, non-enterprise private entities and other entities (hereinafter referred to as the employers) and the workers thereof, as well as the conclusion, performance, alteration, cancellation or termination of labor contracts shall be governed by this Law.

This Law shall also apply to the state organs, public institutions, social organizations and workers bound up by labor contracts concerning the conclusion, performance, alteration, cancellation or termination of labor contracts.

Article 3 The conclusion of a labor contract shall be subject to the principle of legitimacy, justice, equality, free will, reaching consensus by consultation and good faith.

The labor contracts legally concluded shall have binding force. The obligations as agreed therein shall be observed by employers and workers.

Article 4 Employers shall establish and perfect labor bylaws so as to ensure that workers can enjoy labor rights and perform labor obligations.

Where employers constitute, modify or determine such bylaws or significant matters in direct relation to the real benefits of workers as the remuneration, working time, rest and vacation, work safety and health care, social insurance and welfare, job training, job discipline or quota management, the draft thereof shall be discussed at the workers?congress or by all the workers, which shall bring forward schemes and opinions. The aforesaid bylaws and significant matters shall be determined after equal consultation by employers and labor union or representatives of workers.

During the process of the implementation of the aforesaid bylaws and significant matters, the labor union or the workers is/are entitled to require the employer to modify or improve them by consultations if it/they find them improper.

The employers shall publicize the bylaws and significant matters in direct relation to the real benefits of the workers or inform the workers.

Article 5 The labor administrative department of the people's government above the county level shall, in collaboration with workers, congresses and the representatives from enterprises, establish and perfect a three-party mechanism for coordinating labor relationship and shall jointly research relevant major issues with respect to labor relationship.

Article 6 The labor union shall assist and direct the workers to conclude and perform labor contracts with the employers and establish a collective negotiation mechanism with employers in order to safeguard the legitimate rights and interests of the workers.