Friday, June 29, 2007


clipped from

China’s legislature passed a sweeping new labor law today that strengthens protections for workers across its booming economy, rejecting pleas from foreign investors who argued the measure would reduce China’s appeal as a low-wage, business-friendly investment designation.

The new labor contract law, enacted by the Standing Committee of the National People’s Congress, requires employers to provide written contracts to their workers, restricts the use of temporary laborers, and makes it harder to layoff employees.

The law, which will take effect in 2008, also enhances the role of the Communist Party’s monopoly union and allows collective bargaining for wages and benefits. It softens some provisions that foreign companies said would hurt China’s competitiveness, but retained others that American multinationals had lobbied vigorously to exclude.

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