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China Matters: China Issues Labor Contract Law

July 18, 2007

By Michael J. Downey

On June 29, 2007, after several years of drafting and an unprecedented amount of public comments, the Standing Committee of the National Peoples Congress promulgated the Peoples Republic of China (PRC) Labor Contracts Law (Law). The Law has attracted considerable attention because of its impact on all employment relationships in the PRC and the increased protection it aims to provide to employees. As its name suggests, the Law requires that employers provide all full-time employees with written employment contracts. More specifically, it sets forth basic requirements for establishing, implementing, modifying, and terminating employment contracts. This article highlights some key provisions in the new Law.

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