On September 18, 2008 the State Council promulgated the
Implementing Regulations of the Employment Contracts Law of the People's Republic of China ("the Regulations"), which took immediate effect. Although the Employment Contracts Law, which came into effect on January 1, 2008, ("ECL") attempts to standardize fundamental elements in all employment relationships across the People's Republic of China ("PRC"), it contains many ambiguities. Many employers have therefore anxiously waited for the PRC government to issue these Regulations with the hope that they would clarify some of the more vague provisions of the ECL. While the Regulations do provide some clarity with respect to unwritten practices and interpretations of the ECL and other employment rules and regulations, the Regulations do not address some of the more controversial provisions of the ECL.