PRC Labour Union Law (Revised)

Promulgated: October 27 2001
Effective: as of date of promulgation

Main contents: Revisions to Part One on general provisions strengthen the authority of labour unions to perform their function. A paragraph added to Article 6 provides negotiation and collective agreement powers to the labour union.
In Part Two on labour union organization, the second paragraph of Article 9 (formerly Article 11) has been amended to state that close relatives of an enterprise's principle administrators cannot be elected to the enterprise-level labour union committee. In Article 10 (formerly Article 12), the establishment of an enterprise-level committee is made mandatory when more than 25 union members exist within an enterprise. A paragraph added to Article 11 (formerly Article 13) grants higher-level unions the power to send representatives to assist employees of lower level enterprises in their establishment of labour unions. Article 13 consists of an inserted article stating that in an enterprise with more than 200 employees, the enterprise-level labour union can establish a full-time chairmanship, with the number of employees to be engaged full time in union work to be negotiated between the union and the enterprise. The labour contracts of the chairman, vice-chairman and committee members are automatically extended to coincide with the end of their term of office (Article 18). Article 20 (formerly Article 18) expands labour unions' role in the signing of the labour contract and the collective agreement, and an added paragraph outlines a process of negotiation, arbitration and litigation when the enterprise breaches the collective labour agreement.
In Part Three on labour union rights and obligations, Article 22 (formerly Article 21) expands the functions of the union where labour regulations have been breached. Article 24 and Article 25 grant the labour union the authority to point out workplace dangers (in which case the enterprise is required to reply) and investigate workplace accidents.
Part Four deals with the organization of the labour union at the enterprise level. A paragraph stating the labour union can participate in management meetings has been removed from Article 38 (formerly Article 32). The revised article states that the labour union should be consulted on important management issues and that a union representative should be present at management meetings where issues related to the workers (wages, benefits, etc.) are handled.
In Part Five on labour union expenses and property, a paragraph inserted into Article 42 (formerly Article 36) states that enterprise funds submitted to the union are tax deductible.
A sixth part dealing with liability has been added. Article 49 gives the labour union the right to appeal for assistance to a relevant government department or file a lawsuit. Article 52 states that the labour administrative department will order reinstatement and compensation when a worker is dismissed because of the performance of his duties as a union official.