LABOUR LAW

    Chapter I  General Provisions

    Chapter II  Promotion of Employment

    Chapter III  Labor Contracts and Collective Contracts

    Chapter IV  Working Hours, Rest and Vacations

    Chapter V  Wages

    Chapter VI  Occupational Safety and Health

    Chapter VII  Special Protection for Female and Juvenile Workers

    Chapter VIII  Vocational Training

    Chapter IX  Social Insurance and Welfare

    Chapter X  Labor Disputes

    Chapter XI  Supervision and Inspection

    Chapter XII  Legal Responsibility

    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.

    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.

    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:

    (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.

    Article 20  The term of a labor contract shall be divided into fixed
term, flexible term or taking the completion of a specific amount of work as a
term.

    In case a laborer has kept working in a same employing unit for ten years
or more and the parties involved agree to extend the term of the labor
contract, a labor contract with a flexible term shall be concluded between
them if the laborer so requested.

    Article 21  A probation period may be agreed upon in a labor contract.
The longest probation period shall not exceed six months.

    Article 22  The parties involved in a labor contract may reach an
agreement in their labor contract on matters concerning keeping the
commercial secrets of the employing unit.

    Article 23  A labor contract shall terminate upon the expiration of its
term or the emergence of the conditions for the termination of the labor
contract as agreed upon by the parties involved.

    Article 24  A labor contract may be revoked upon agreement reached
between the parties involved through consultation.

    Article 25  The employing unit may revoke the labor contract with a
laborer in any of the following circumstances:

    (1) to be proved not up to the requirements for recruitment during the
probation period;

    (2) to seriously violate labor disciplines or the rules and regulations
of the employing unit;

    (3) to cause great losses to the employing unit due to serious dereliction
of duty or engagement in malpractice for selfish ends; and

    (4) to be investigated for criminal responsibilities in accordance with
the law.

    Article 26  In any of the following circumstances, the employing unit may
revoke a labor contract but a written notification shall be given to the
laborer 30 days in advance:

    (1) where a laborer is unable to take up his original work or any new
work arranged by the employing unit after the completion of his medical
treatment for illness or injury not suffered from at work;

    (2) where a laborer is unqualified for his work and remains unqualified
even after receiving a training or an adjustment to an other work post; and

    (3) no agreement on modification of the labor contract can be reached
through consultation by the parties involved when the objective conditions
taken as the basis for the conclusion of the contract have greatly changed so
that the original labor contract can no longer be carried out.

    Article 27  During the period of statutory consolidation when the
employing unit comes to the brink of bankruptcy or runs deep into difficulties
in production and management, and if reduction of its personnel becomes really
necessary, the unit may make such reduction after it has explained the
situation to the trade union or all of its staff and workers 30 days in
advance, solicited opinions from them and reported to the labor
administrative department.

    Where the employing unit is to recruit personnel six months after the
personnel reduction effected according to the stipulations of this Article,
the reduced personnel shall have the priority to be re-employed.

    Article 28  The employing unit shall make economic compensations in
accordance with the relevant provisions of the State if it revokes its labor
contracts according to the stipulations in Article 24, Article 26 and Article
27 of this Law.

    Article 29  The employing unit shall not revoke its labor contract with a
laborer in accordance with the stipulations in Article 26 and Article 27 of
this Law in any of the following circumstances:

    (1) to be confirmed to have totally or partially lost the ability to work
due to occupational diseases or injuries suffered from at work;

    (2) to be receiving medical treatment for diseases or injuries within the
prescribed period of time;

    (3) to be a female staff member or worker during pregnant, puerperal, or
breast-feeding period; or

    (4) other circumstances stipulated by laws, administrative rules and
regulations.

    Article 30  The trade union of an employing unit shall have the right to
air its opinions if it regards as inappropriate the revocation of a labor
contract by the unit. If the employing unit violates laws, rules and
regulations or labor contracts, the trade union shall have the right to
request for reconsideration. Where the laborer applies for arbitration or
brings in a lawsuit, the trade union shall render him support and assistance
in accordance with the law.

    Article 31  A laborer who intends to revoke his labor contract shall
give a written notice to the employing unit 30 days in advance.

    Article 32  A laborer may notify at any time the employing unit of his
decision to revoke the labor contract in any of the following circumstances:

    (1) within the probation period;

    (2) where the employing unit forces the laborer to work by resorting to
violence, intimidation or illegal restriction of personal freedom; or

    (3) failure on the part of the employing unit to pay labor remuneration
or to provide working conditions as agreed upon in the labor contract.

    Article 33  The staff and workers of an enterprise as one party may
conclude a collective contract with the enterprise on matters relating to
labor remuneration, working hours, rest and vacations, occupational safety
and health, and insurance and welfare. The draft collective contract shall be
submitted to the congress of the staff and workers or to all the staff and
workers for discussion and adoption.

    A collective contract shall be concluded by the trade union on behalf of
the staff and workers with the enterprise; in an enterprise where the trade
union has not yet been set up, such contract shall be also concluded by the
representatives elected by the staff and workers with the enterprise.

    Article 34  A collective contract shall be submitted to the labor
administrative department after its conclusion. The collective contract shall
go into effect automatically if no objections are raised by the labor
administrative department within 15 days from the date of the receipt of a
copy of the contract.

    Article 36  The State shall practise a working hour system under which
laborers shall work for no more than eight hours a day and no more than 44
hours a week on the average.

    Article 37  In case of laborers working on the basis of piecework, the
employing unit shall rationally fix quotas of work and standards on piecework
remuneration in accordance with the working hour system stipulated in Article
36 of this Law.

    Article 38  The employing unit shall guarantee that its staff and workers
have at least one day off in a week.

    Article 39  Where an enterprise can not follow the stipulations in Article
36 and Article 38 of this Law due to its special production nature, it may
adopt other rules on working hours and rest with the approval of the labor
administrative department.

    Article 40  The employing unit shall arrange holidays for laborers in
accordance with the law during the following festivals:

    (1) the New Year’s Day;

    (2) the Spring Festival;

    (3) the International Labor Day;

    (4) the National Day; and

    (5) other holidays stipulated by laws, rules and regulations.

    Article 41  The employing unit may extend working hours due to the
requirements of its production or business after consultation with the trade
union and laborers, but the extended working hour for a day shall generally
not exceed one hour; if such extension is called for due to special reasons,
the extended hours shall not exceed three hours a day under the condition that
the health of laborers is guaranteed. However, the total extension in a month
shall not exceed thirty six hours.

    Article 42  The extension of working hours shall not be subject to
restriction of the provisions of Article 41 of this Law under any of the
following circumstances:

    (1) where emergent dealing is needed in the event of natural disaster,
accident or other reason that threatens the life, health and the safety of
property of laborers;

    (2) where prompt rush repair is needed in the event of breakdown of
production equipment, transportation lines or public facilities that affects
production and public interests; and

    (3) other circumstances as stipulated by laws, administrative rules and
regulations.

    Article 43  The employing unit shall not extend working hours of laborers
in violation of the provisions of this Law.

    Article 44  The employing unit shall, according to the following
standards, pay laborers remunerations higher than those for normal working
hours under any of the following circumstances:

    (1) to pay no less than 150 per cent of the normal wages if the extension
of working hours is arranged;

    (2) to pay no less than 200 per cent of the normal wages if the extended
hours are arranged on days of rest and no deferred rest can be taken; and

    (3) to pay no less than 300 per cent of the normal wages if the extended
hours are arranged on statutory holidays.

    Article 45  The State shall practise a system of annual vacation with pay.

    Article 46  The distribution of wages shall follow the principle of
distribution according to work and equal pay for equal work.

    The level of wages shall be gradually raised on the basis of economic
development. The State shall exercise macro-regulations and control over the
total payroll.

    Article 47  The employing unit shall independently determine its form of
wage distribution and wage level for its own unit according to law and based
on the characteristics of its production and business and economic results.

    Article 48  The State shall implement a system of guaranteed minimum
wages. Specific standards on minimum wages shall be determined by the people’s
governments of provinces, autonomous regions or municipalities directly under
the Central Government and reported to the State Council for the record.

    Wages paid to laborers by the employing unit shall not be lower than the
local standards on minimum wages.

    Article 49  The determination and readjustment of the standards on minimum
wages shall be made with reference to the following factors in a comprehensive
manner:

    (1) the lowest living expenses of laborers themselves and the average
family members they support;

    (2) the average wage level of the society as a whole;

    (3) labor productivity;

    (4) the situation of employment; and

    (5) the different levels of economic development between regions.

    Article 50  Wages shall be paid monthly to laborers themselves in cash.
The wages paid to laborers shall not be deducted or delayed without
justification.

    Article 52  The employing unit must establish and perfect the system for
occupational safety and health, strictly implement the rules and standards of
the State on occupational safety and health, educate laborers on occupational
safety and health, prevent accidents in the process of work, and reduce
occupational hazards.

    Article 53  Facilities of occupational safety and health must meet the
standards stipulated by the State.

    Facilities of occupational safety and health installed in new projects and
projects to be rebuilt or expanded must be designed, constructed and put into
operation and use at the same time as the main projects.

    Article 54  The employing unit must provide laborers with occupational
safety and health conditions conforming to the provisions of the State and
necessary articles of labor protection, and provide regular health
examination for laborers engaged in work with occupational hazards.

    Article 55  Laborers to be engaged in specialized operations must receive
specialized training and acquire qualifications for such special operations.

    Article 56  Laborers must strictly abide by rules of safe operation in
the process of their work.

    Laborers shall have the right to refuse to operate if the management
personnel of the employing unit command the operation in violation of rules
and regulations or force laborers to run risks in operation; laborers shall
have the right to criticize, report or file charges against the acts
endangering the safety of their life and health.

    Article 58  The State shall provide female workers and juvenile workers
with special protection.

    “Juvenile workers” hereby refer to laborers at the age of 16 but not 18
yet.

    Article 59  It is prohibited to arrange female workers to engage in work
down the pit of mines, or work with Grade IV physical labor intensity as
stipulated by the State, or other work that female workers should avoid.

    Article 60  Female workers during their menstrual periods shall not be
arranged to engage in work high above the ground, under low temperature, or in
cold water or work with Grade III physical labor intensity as stipulated by
the State.

    Article 61  Female workers during their pregnancy shall not be arranged to
engage in work with Grade III physical labor intensity as stipulated by the
State or other work that they should avoid in pregnancy. Female workers
pregnant for seven months or more shall not be arranged to extend their
working hours or to work night shifts.

    Article 62  After childbirth, female workers shall be enpost_titled to no less
than ninety days of maternity leaves with pay.

    Article 63  Female workers during the period of breast-feeding their
babies less than one year old shall not be arranged to engage in work with
Grade III physical labor intensity as stipulated by the State or other labor
that they should avoid during their breast-feeding period, or to extend their
working hours or to work night shifts.

    Article 64  No juvenile workers shall be arranged to engage in work down
the pit of mines, work that is poisonous or harmful, work with Grade IV
physical labor intensity as stipulated by the State, or other work that they
should avoid.

    Article 66  The State shall take various measures through various channels
to expand vocational training undertakings so as to develop professional
skills of laborers, improve their qualities, and raise their employment
capability and work ability.

    Article 67  People’s governments at various levels shall incorporate the
development of vocational training in the plans of social and economic
development, encourage and support all enterprises, institutional
organizations, societies and individuals, where conditions permit, to sponsor
all kinds of vocational training.

    Article 68  The employing unit shall establish a system for vocational
training, raise and use funds for vocational training in accordance with the
provisions of the State, and provide laborers with vocational training in a
planned way and in the light of the actual situation of the unit.

    Laborers to be engaged in technical work must receive pre-job training
before taking up their posts.