BIZCHINA / Labour

Provisions on the Labor Administration of the Enterprises of Foreign Investment

Updated: 2006-05-08 11:12

The Labour Law of the People's Republic of China which has been adopted at the Eighth Meeting of the Standing Committee of the Eighth National People's Congress on July 5, 1994 is promulgated now, and shall enter into force as of January 1, 1995.  

Chapter I General Provisions

Article 1
This Law is formulated in accordance with the Constitution in order to protect the legitimate rights and interests of laborers, readjust labor relationship, establish and safeguard a labor system suited to the socialist market economy, and promote economic development and social progress.

Article 2
This Law applies to all enterprises and individual economic organizations (hereinafter referred to as employing units) within the boundary of the People's Republic of China and laborers who form a labor relationship therewith.
State organs, institutional organizations and societies as well as laborers who form a labor contract relationship therewith shall follow this Law.

Article 3
Laborers shall have the right to be employed on an equal basis, choose occupations, obtain remuneration for their labor, take rest, have holidays and leaves, obtain protection of occupational safety and health, receive training in vocational skills, enjoy social insurance and welfare, and submit applications for settlement of labor disputes, and other rights relating to labor as stipulated by law.
Laborers shall fulfill their labor tasks, improve their vocational skills, follow rules on occupational safety and health, and observe labor discipline and professional ethics.

Article 4
The employing units shall establish and perfect rules and regulations in accordance with the law so as to ensure that laborers enjoy the right to work and fulfill labor obligations.

Article 5
The State shall take various measures to promote employment, develop vocational education, lay down labor standards, regulate social incomes, perfect social insurance system, coordinate labor relationship, and gradually raise the living standard of laborers.

Article 6
The State shall advocate the participation of laborers in social voluntary labor and the development of their labor competitions and activities of forwarding rational proposals, encourage and protect the scientific research and technical renovation engaged by laborers, as well as their inventions and creations; and commend and award labor models and advanced workers.

Article 7
Laborers shall have the right to participate in and organize trade unions in accordance with the law.
Trade unions shall represent and safeguard the legitimate rights and interests of laborers, and independently conduct their activities in accordance with the law.

Article 8 Laborers shall, through the assembly of staff and workers or their congress, or other forms in accordance with the provisions of laws, rules and regulations, take part in democratic management or consult with the employing units on an equal footing about protection of the legitimate rights and interests of laborers.

Article 9 The labor administrative department of the State Council shall be in charge of the management of labor of the whole country.
The labor administrative departments of the local people's governments at or above the county level shall be in charge of the management of labor in the administrative areas under their respective jurisdiction.

Chapter II Promotion of Employment

Article 10 The State shall create conditions for employment and increase opportunities for employment by means of the promotion of economic and social development.
The State shall encourage enterprises, institutional organizations, and societies to initiate industries or expand businesses for the increase of employment within the scope of the stipulations of laws, and administrative rules and regulations.
The State shall support laborers to get jobs by organizing themselves on a voluntary basis or by engaging in individual businesses.

Article 11 Local people's governments at various levels shall take measures to develop various kinds of job-introduction agencies and provide employment services.

Article 12 Laborers shall not be discriminated against in employment, regardless of their ethnic community, race, sex, or religious belief.

Article 13 Females shall enjoy equal rights as males in employment. It shall not be allowed, in the recruitment of staff and workers, to use sex as a pretext for excluding females from employment or to raise recruitment standards for the females, except for the types of work or posts that are not
suitable for females as stipulated by the State.

Article 14 Where there are special stipulations in laws, rules and regulations on the employment of the disabled, the personnel of national minorities, and demobilized armymen, such special stipulations shall apply.

Article 15 No employing units shall be allowed to recruit juveniles under the age of 16.
Units of literature and art, physical culture and sport, and special arts and crafts that need to recruit juveniles under the age of 16 must go through the formalities of examination and approval according to the relevant provisions of the State and guarantee their right to compulsory education.

Chapter III Labor Contracts and Collective Contracts

Article 16 A labor contract is the agreement reached between a laborer and an employing unit for the establishment of the labor relationship and the definition of the rights, interests and obligations of each party.
A labor contract shall be concluded where a labor relationship is to be established.

Article 17 Conclusion and modification of a labor contract shall follow the principles of equality, voluntariness and unanimity through consultation, and shall not run counter to the stipulations of laws, administrative rules and regulations.
A labor contract once concluded in accordance with the law shall possess legal binding force.
The parties involved must fulfill the obligations as stipulated in the labor contract.

Article 18 The following labor contracts shall be invalid: 2/11
(1) labor contracts concluded in violation of laws, administrative rules and regulations; and
(2) labor contracts concluded by resorting to such measures as cheating and intimidation.
An invalid labor contract shall have no legal binding force from the very beginning of its conclusion. Where a part of a labor contract is confirmed as invalid and where the validity of the remaining part is not affected, the remaining part shall remain valid.
The invalidity of a labor contract shall be confirmed by a labor dispute arbitration committee or a people's court.

Article 19 A labor contract shall be concluded in written form and contain the following clauses:
(1) term of a labor contract;
(2) contents of work;
(3) labor protection and working conditions;
(4) labor remuneration;
(5) labor disciplines;
(6) conditions for the termination of a labor contract; and
(7) responsibility for the violation of a labor contract.
Apart from the required clauses specified in the preceding paragraph, other contents in a labor contract may be agreed upon through consultation by the parties involved.


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