PRC Law on Mediation and Arbitration of Labour Disputes: Further Improvement in Handling Labour Issues in China

May 08, 2008 | BY

clpstaff &clp articles

The PRC Law on the Mediation and Arbitration of Employment Disputes is another important step made by the Standing Committee of the PRC National People's Congress after its promulgation of the Labour Contract Law in June 2007. Both this and the Labour Contract Law are intended to better protect the legitimate rights and interests of employees and employers, with the latter in respect of the substantive law and the former in respect of the procedural system.

China's existing system of handling labour disputes is provided for in the Regulations on the Handling of Labour Disputes in Enterprises, promulgated by the PRC State Council in 1993 (Regulations), and in the PRC Labour Law (中华人民共和国劳动法)as adopted by the Standing Committee of the PRC National People's Congress in 1994.

In relation to the Labour Law, the procedure for handling labour disputes is generally summarized as “one mediation, one arbitration and two trials.” This means that whenever any labour dispute arises, the parties may try to resolve the dispute first by mediation, then by arbitration, and finally, if the mediation fails and no outcome is achieved in the arbitration, by appeal to the courts. According to the Chinese court system, the second hearing is final. This system, which has been in operation for over 10 years, is not without loopholes, and it is commonly recognized that amendments are necessary. The PRC Law on the Mediation and Arbitration of Employment Disputes (Law) while maintaining the basic procedure of “one mediation, one arbitration and two trials”, has made dramatic adjustments and changes in specific procedures, among which the following are worthy of special attention.

EXPANSION IN THE SCOPE OF ACCEPTANCE

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