No revision of employment law expected
April 16, 2009 | BY
clpstaff &clp articlesLegal burdens could lead to more short-term employment
The government will not revise China's Employment Contract Law (ECL), despite rising cases of bankruptcy due to increased costs for companies. This is likely to lead to companies giving workers more short-term jobs.
Xin Chunying, deputy director of the Legislative Affairs Commission of the Standing Committee of the National People's Congress (NPC), was recently quoted by the Xinhua news agency as saying that the employment contract law had nothing to do with the financial crisis and that China's labour relations are stable and “can weather through the test of time.”
At the recently closed NPC meeting in Beijing, Xin cited a survey which found that the new law had driven up labour costs for enterprises by only 2% in the first nine months of 2008.
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