Law of the People's Republic of China on

Labor Contracts

(Adopted at the 28th session of the 10th National People's Congress Standing Committee on 29 June 2007)

Table of Contents

Chapter I General Principles

Chapter II Conclusion of Labor Contracts

Chapter III Execution and Modification of Labor Contracts

Chapter IV Dissolution and Termination of Labor Contracts

Chapter V Special Provisions

Section I Collective Contracts

Section II Staffing Services

Section III Part-Time Labor

Chapter VI Supervision and Inspections

Chapter VII Legal Liability

Chapter VIII Supplementary Articles

Chapter I General Principles

Article 1 This law has been formulated in order to improve the labor contract system, define the rights and obligations of the parties to labor contracts, protect the lawful rights and interests of workers, and build and develop harmonious and stable

labor relationships.

Article 2 This law applies to the establishment of labor relationships between organizations such as enterprises,

individual economic organizations, and private non-enterprise units (hereinafter referred to as "employer units") on the one hand and workers on the other hand within the PRC territory, as well as to the conclusion, execution, modification, dissolution, or termination of labor contracts.

The conclusion, execution, modification, dissolution, or termination of labor contracts between state agencies, public institutions, or social organizations and the workers with whom they establish labor relationships shall be handled pursuant to this law.

Article 3 The conclusion of labor contracts shall comply with the principles of lawfulness, fairness, equality, free volition, consensus through negotiations, honesty, and good faith.

A lawfully concluded labor contract is binding, and both the employer unit and the worker shall perform their obligations stipulated in the labor contract.

Article 4 Employer units shall establish and improve labor rules and regulations in accordance with the law to ensure that workers enjoy labor rights and discharge their labor obligations.

Employer units seeking to formulate, revise, or decide on rules and regulations or significant matters that have a direct bearing on the immediate interests of their workers, such as those concerning remuneration, work hours, rest, leave, work safety and hygiene, insurance, benefits, employee training, labor discipline, and work quota management, shall determine the matters through negotiationss conducted on an equal footing with trade unions or employee

representatives, after employee representatives' conferences or all the employees have held discussions and put forward proposals and comments.

If trade unions or employees deem the rules and regulations or decisions on significant matters inappropriate during the course of implementation, they are entitled to raise the matter with employer units and seek to modify or improve them through negotiationss.

Employer units shall make public rules and regulations or decisions on significant matters that have a direct bearing on the immediate interests of their workers or inform the workers thereof.

Article 5 The labor administrative departments of people's governments at or above the county level shall, together with trade union and enterprise representatives, establish a sound tripartite mechanism for coordinating labor relationships and jointly study and resolve major issues concerning labor relationships.

Article 6 A labor union shall assist and guide workers in the conclusion and execution of labor contracts with their employer units in accordance with the law and establish a collective bargaining mechanism with employer units in order to safeguard the lawful rights and interests of workers.

Chapter II Conclusion of Labor Contracts