Article 20 The time limits of labour contracts shall be divided into fixed and flexible time limits and time limits for the completion of certain amount of work.

Labour contracts with flexible time limits shall be concluded between the labourers and the employer if the former request for the conclusion of labour contracts with flexible time limits after working continuously with the employer for more then 10 years and with agreement between both of the parties involved to prolong their contracts.

Article 21 Probation periods can be agreed upon in labour contracts. These probation periods shall not, however, exceed six months at the longest.

Article 22 The parties involved in a labour contract can reach agreements in their labour contracts on matters concerning the keeping of the commercial secrets of the employer.

Article 23 Labour contracts shall terminate upon the expiration of their time limits or the occurrence of the conditions agreed upon in labour contracts by the parties involved for terminating these contracts.

Article 24 Labour contracts can be revoked with agreement reached between the parties involved through consultation.

Article 25 The employer can revoke labour contracts should any one of the following cases occur with its labourers:

(1) When they are proved during probation periods to be unqualified for employment;

(2) When they seriously violate labour disciplines or the rules or regulations of the employer;

(3) When they cause great losses to the employer due to serious dereliction of duties or engagement in malpractices for selfish ends;

(4) When they are brought to hold criminal responsibilities in accordance with law.

Article 26 The employer can revoke labour contracts should any one of the following cases occur, with its labourers to be notified, in written form, of such revocation in 30 days advance:

(1) The labourers can neither take up their original jobs nor any other kinds of new jobs assigned by the employer after completion of medical treatment for their illnesses or injuries not suffered during work;

(2) The labourers are incompetent at their jobs and remain as so even after training or after readjusting the work posts;

(3) No agreements on a alteration of labour contracts can be reached through consultation between and by the parties involved when major changes taking place in the objective conditions serving as the basis of the conclusion of these contracts prevent them being implemented.

Article 27 In case it becomes a must for the employer to cut down the number of workforce during the period of legal consolidation when it comes to the brink of bankruptcy or when it runs deep into difficulties in business, the employer shall explain the situation to its trade union or all of its employees 30 days in advance, solicit opinions from its trade union or the employees, and report to the labour administrative department before it makes such cuts.

If the employer cuts its staff according to stipulations in this Article and then seeks recruits within six months, it shall first recruit those that have been cut.

Article 28 The employer shall make economic compensations in accordance with relevant State regulations if it revokes labour contracts according to stipulations in Article 24, Article 26 and Article 27 of this Law.

Article 29 The employer shall not revoke labour contracts in accordance with stipulations in Article 26 and Article 27 of this Law should any one of the following cases occur with its labourers:

(1) Those who are confirmed to have totally or partially lost their labour ability due to occupational diseases or work-related injuries;

(2) Those who are receiving treatment for their diseases or injuries during prescribed period of time;

(3) Women employees during pregnancy, puerperium, and nursing periods;

(4) Others cases stipulated by laws and administrative decrees.

Article 30 The trade union shall have the right to air its opinions if it regards as inappropriate the revocation of a labour contract by the employer. If the employer violates laws, regulations or labour contracts, its trade union shall have the right to ask for handling the case anew. If labourers apply for arbitration or raise lawsuits, the trade union shall render support and help in accordance with law.

Article 31 Labourers planning to revoke labour contracts shall give a written notice to their employer in 30 days advance.

Article 32 Labourers can notify, at any time, their employer of their decision to revoke labour contracts in any one of the following cases:

(1) During their periods of probation;

(2) If they are forced to work by the employer through means of violence, threat or deprival of personal freedom in violation of law;

(3) Failure on the part of the employer to pay labour remunerations or to provide labour conditions as agreed upon in labour contracts.

Article 33 The employees of an enterprise as one party may conclude a collective contract with the

enterprise as another party on labour renumerations, work hours, rests and leaves, labour safety and sanitation, insurance, welfare treatment, and other matters.

The draft collective contract shall be submitted to the workers representative assembly or all the employees for discussion and passage.

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