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/Archives - Dates and Topics /2007 – online /June – July 2007 /July 23 – July 29 Print | Send to friend

New Labor Law Provides Challenge in China



click here for related stories: China
7-26-07, 9:50 am


BEIJING, July 23 -- While the new Labor Contract Law will come into force next year, there remains controversy over exactly how it will be implemented.

Companies are concerned, for example, the law will overprotect workers' rights, while dismissing their own interests.

It is quite understandable for employers and employees to have different opinions about the law, which aims to rectify labor relations. Both sides have concerns about its ability to protect their rights and interests and doubt the other party's commitment to it. They are also not sure whether enforcement organizations will be able to strictly implement the law.

In fact, the enforcement of the law will be a test for society, as the government, employers, workers and all other social members are involved.

For the government and law enforcement departments, the Labor Contract Law tests whether they have the correct concept of administration – people's livelihoods, capital or GDP figures – with the latter being the current first priority in the process of administration and law enforcement in many areas.

For a long time, we have set GDP as the only goal to pursue. As long as GDP growth was realized, laws and regulations, as well as workers' rights and interests, could be put to one side. Some regional governments openly abandoned law enforcement and trampled on workers' rights to lure investors.

The main characteristic of the Labor Contract Law is that it puts special emphasis on protecting workers' legitimate rights and interests. Therefore, its implementation requires the government and law enforcement departments to change their ideas. They must abandon the backward and inhuman policies of toadying to company chiefs, and show a determination to protect workers' rights even at the price of slowing GDP growth.


Maybe the Labor Contract Law will affect the country's attractiveness to investors as well as GDP growth but this just sets a serious test to the government and law enforcement departments. Once employers change their concept and a worker-friendly social environment is formed, everything will get on a sound cycle and the economy will get on a sustainable and fast track of development.

The enforcement of the Labor Contract Law also tests employers' spirit of humanism, concept of equality and sense of social responsibility. On those stipulations giving special emphasis on protecting workers' rights and interests, experts have pointed out that the new law will not burden companies that have been operating according to law. For companies that lack a sense of social responsibility and willfully exploit their workers, the implementation of the new law will be a huge burden.

From China Daily. By Lao Li, associate professor with Shandong Institute of Political Science and Law.

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