Brief Of New Labor Contract Law Of China
1. WHAT IS NEW LABOR CONTRACT LAW
The Standing Committee of the People’s Congress has enacted <<Labor Contract Law of the People’s Republic of China>> on June 29, 2007, effective as of January 1, 2008.
This Labor Contract Law (hereinafter referred to as “New Labor Contract Law”) shall apply to all labor-using units within the territory of the PRC (hereinafter referred to as “Labor-using-unit”).
The New Labor Contract Law makes a great deal of amendments, supplementations and improvements to the provisions in respect of the labor contracts in 1994’s Labor Law of the PRC (hereinafter referred to as “Old Labor Law”).
This Law has been formulated in order to improve the employment contract system, to specify the rights and obligations of the parties to employment contracts, to protect the lawful rights and interests of Employees and to build and develop harmonious and stable employment relationships.
2. SIGNIFICANT AMENDMENT TO OLD LABOUR LAW
- Written labor contract
- Unfixed term labor contract
- Work compensation and working conditions
- Probation period
- Good-faith-information-obligations
- The labor union and the employee representatives
- Non-compete-in-the-same-industry clause
- Training and confidential agreement
- Entirely or partially void labour contract
- Termination
- Supervision and inspection powers