Employers, prepare for tribunal trouble
February 09, 2009 | BY
clpstaff &clp articlesEmployers in China are facing more labour arbitrations as employees take advantage of free tribunals and increased rights. Foreign companies are at most risk. They must keep good documentation and pay close attention to balancing internal rules and local law.
By Joanna Law.
This year marks mainland China's 31st year of reform, but Guangdong province is showing few signs of celebration. Tales of mass lay-offs, factory shut-downs and labour disputes have become some of the most widely-featured stories in the local news media.
Known as China's manufacturing hub, Guangdong has been particularly badly hit. Shenzhen's gross domestic product growth slid from 14.6% to 12.1% in 2008, and is expected to drop to 10% this year.
Conflicts between employers and employees are especially serious. Ever since the new Employment Contract Law (中华人民共和国劳动合同法) took effect in 2007, and its Implementing Regulations (中华人民共和国劳动合同法实施条例) came into force in 2008, labour arbitration cases in the Pearl Delta have increased significantly: more than 60,000 applications had been made for arbitration by the end of 2008, according to the arbitration office of the Guangzhou Labour and Social Security Bureau. This figure is about the same as the combined total for the previous two years.
This premium content is reserved for
China Law & Practice Subscribers.
A Premium Subscription Provides:
- A database of over 3,000 essential documents including key PRC legislation translated into English
- A choice of newsletters to alert you to changes affecting your business including sector specific updates
- Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
Already a subscriber? Log In Now