Government approval may be required for mass layoffs

December 18, 2008 | BY

clpstaff &clp articles

Move is part of wider labour law developments

Companies throughout China may soon have to seek government approval for mass lay-offs. The minimum wage could also be decreased in order to prevent rising unemployment and social instability.

The Employment Contract Law (中华人民共和国劳动合同法) (ECL), which came into force on January 1 2008, says companies must report lay-offs of more than 20 workers to their local labour authorities.

But authorities in Shandong and Hubei provinces have revised their rules, making it compulsory for companies to get approval for lay-offs of more than 40 employees.

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