PRC People's Mediation Law

(Adopted at the 16th Session of the Standing Committee of the 11th National People's Congress on August 28 2010 and effective as of January 1 2011.)

PRC President's Order (No.34 of the 11th NPC)

Part One: General provisions

Article 1: This Law has been formulated pursuant to the Constitution in order to improve the people's mediation system, regulate people's mediation activities, resolve private disputes in a timely manner and maintain social harmony and stability.

Article 2: For the purposes of this Law, the term “people's mediation” means the activity of resolving private disputes whereby a people's mediation committee procures, by means such as persuasion and counsel, the reaching by concerned parties of a settlement agreement of their own free will on the basis of equality and negotiations.

Article 3: When mediating a private dispute, a people's mediation committee shall abide by the following principles:

(1) conducting the mediation on the basis of the free will and equality of the parties;

(2) not running counter to laws, regulations and state policies; and

(3) respecting the rights of the parties, and not, because mediation has been undertaken, preventing the parties from seeking to protect their rights lawfully through arbitration, administrative, judicial and other such means.

Article 4: A people's mediation committee shall not charge any fees for mediating a private dispute.

Article 5: The State Council's judicial administrative department shall be responsible for guiding people's mediation on a nationwide basis, and the judicial administrative departments of local people's governments at the county level and above shall be responsible for guiding people's mediation within their administrative areas.

Basic-level people's courts shall provide vocational guidance to people's mediation committees in mediating private disputes.

Article 6: The state encourages and supports people's mediation. Local people's governments at the county level and above shall give necessary support and assurance for the funding needed for people's mediation, and shall commend and reward, in accordance with state provisions, people's mediation committees and people's mediators that make outstanding contributions.

Part Two: People's mediation committees

Article 7: People's mediation committees are lawfully established organisations within the general population that mediate private disputes.

Article 8: Village committees and residents' committees shall establish people's mediation committees. Enterprises and public institutions shall establish people's mediation committees as required.

A people's mediation committee shall comprise from three to nine members, of whom one shall be the chairperson. When necessary, a people's mediation committee may have a number of vice chairpersons.

A people's mediation committee shall have female members, and, in multi-ethnic areas, it shall have members from the minority ethnic groups.

Article 9: The members of a people's mediation committee established by a village committee or a residents' committee shall be elected by the villager's meeting or villager representative meeting, or the residents' meeting, as the case may be. The members of a people's mediation committee established by an enterprise or public institution shall be elected by the employees' general meeting, employee representative general meeting or the labour union.

Members of people's mediation committees shall serve terms of three years and may serve consecutive terms if re-elected.

Article 10: The judicial administrative department of a people's government at the county level shall keep statistics on the establishment of people's mediation committees in its administrative area and shall submit, in a timely manner, information on the people's mediation committees, their composition and changes therein to the basic-level people's court of the place where it is located.

Article 11: A people's mediation committee shall establish sound mediation work systems, listen to the opinions of the public and submit itself to monitoring by the public.

Article 12: A village committee, residents' committee, enterprise or public institution shall provide the office resources and necessary funding for the people's mediation committee to carry out its work.

Part Three: People's mediators

Article 13: Members of a people's mediation committee and persons engaged by the people's mediation committee shall serve as people's mediators.

Article 14: Adult citizens who are impartial, upright and earnest about people's mediation, and have a certain educational attainment, political level and legal knowledge shall serve as people's mediators.

The judicial administrative department of the people's government at the county level shall give vocational training to people's mediators on a regular basis.

Article 15: If a people's mediator commits any of the acts set forth below in the course of mediation, the people's mediation committee shall advise and educate him or her, and order him or her to rectify the matter, and if the circumstances are serious, the entity that elected or engaged him or her shall remove or dismiss him or her:

(1) he or she is partial to one party;

(2) he or she insults a party;

(3) he or she solicits or accepts property or seeks to obtain other illegitimate gains; or

(4) he or she divulges private matters or trade secrets of a party.

Article 16: When a people's mediator is engaged in mediation work, he or she shall be given an appropriate stipend for lost working hours. If a people's mediator sustains an injury or becomes disabled, or his or her livelihood suffers difficulties as a result of engaging in mediation work, the local people's government shall provide him or her the necessary medical or livelihood assistance. If a people's mediator dies in the course of performing people's mediation work, his or her spouse and children shall be eligible for a pension and preferential treatment in accordance with state provisions.

Part Four: Mediation procedure

Article 17: A party may apply to the people's mediation committee for mediation, or, alternatively, the people's mediation committee may take the initiative in offering mediation. If a party expressly refuses mediation, mediation may not be attempted.

Article 18: If a dispute could suitably be resolved through people's mediation, the basic-level people's court or the public security authority may, before accepting the case, inform the parties that they can apply to the people's mediation committee for mediation.

Article 19: The people's mediation committee may, as required for mediating a dispute, designate one or more people's mediators to mediate the dispute or, alternatively, the parties may select one or more people's mediators to conduct the mediation.

Article 20: The people's mediator(s) may, as required for mediating the dispute and after securing the consent of the parties, invite their family members, neighbours, colleagues, etc. to participate in the mediation, or may invite persons with specialised knowledge or specific expertise or persons from relevant social organisations to participate in the mediation.

The people's mediation committee shall support the participation in the mediation by private individuals who are impartial, upright and earnest about mediation, and who have a certain standing among the public.

Article 21: When mediating a dispute, people's mediators shall adhere to principles, explain the law, make reasons clear and remain impartial.

The mediation of a private dispute shall be conducted locally in a timely manner and efforts shall be made to prevent intensification of the controversy.

Article 22: People's mediators may, depending on the nature of a dispute, adopt different approaches to mediating a private dispute, fully listen to the statements made by the parties, explain relevant laws, regulations and state policies, patiently attempt persuasion and propose options for resolving the dispute based on negotiations conducted on the basis of equality between the parties, mutual understanding and mutual compromise, thereby assisting the parties in reaching a settlement agreement of their own free will.

Article 23: Parties shall enjoy the following rights in the course of people's mediation activities:

(1) to select or accept people's mediators;

(2) to accept mediation, refuse mediation or request the termination of mediation;

(3) to request that mediation be conducted either publicly or privately; and

(4) to express their wishes at their own initiative and to reach a settlement agreement of their own free will.

Article 24: Parties shall perform the following obligations in the course of people's mediation activities:

(1) to truthfully state the facts of the dispute;

(2) to abide by the order of the site of mediation and to respect the people's mediator(s); and

(3) to respect the other party's exercise of his or her rights.

Article 25: If a people's mediator discovers in the course of mediating a dispute that the dispute could intensify, he or she shall take appropriate precautionary measures. If a dispute could give rise to a public security case or criminal case, the people's mediator(s) shall report the same to the local public security authority or other relevant department in a timely manner.

Article 26: If people's mediators are unsuccessful in their mediation of a dispute, they shall terminate the mediation and, in accordance with relevant laws and regulations, they shall inform the parties that they may seek to protect their rights through arbitration, administrative, judicial or other such means in accordance with the law.

Article 27: The people's mediator(s) shall keep a record of the mediation. The people's mediation committee shall keep mediation work files and place materials such as the mediation registration, mediation work record and written settlement agreement in a dossier to be kept on file.

Part Five: Settlement agreement

Article 28: When a settlement agreement is reached through mediation by a people's mediation committee, a written settlement agreement may be drawn up. If the parties deem it unnecessary to draw up a written settlement agreement, the agreement may be made orally and the people's mediator(s) shall record the contents of the agreement.

Article 29: A written settlement agreement may record the following particulars:

(1) the basic particulars of the parties;

(2) the main facts of the dispute, the disputed matter and the responsibility of each party; and

(3) the contents of the settlement agreement reached by the parties and the method of, and deadline for, performing the same.

The written settlement agreement shall enter into effect on the date that the parties affix their signatures, stamps or thumb prints thereto and the people's mediator(s) affix his/her/their signature(s) and the stamp of the people's mediation committee thereto. Each of the parties shall hold one copy and the people's mediation committee shall retain one copy of the written settlement agreement.

Article 30: An oral settlement agreement shall enter into effect on the date the parties reach the agreement.

Article 31: A settlement agreement reached through mediation by a people's mediation committee shall be legally binding and the parties shall perform the same in accordance with its provisions.

The people's mediation committee shall monitor the implementation of the settlement agreement and procure the performance by the parties of their specified obligations.

Article 32: If, after a settlement agreement is reached through mediation by a people's mediation committee, a dispute arises between the parties over the performance or contents of the settlement agreement, either party may institute a legal action in the people's court.

Article 33: If, after a settlement agreement is reached through mediation by a people's mediation committee, the parties deem it necessary, they may jointly apply to the people's court for judicial confirmation within 30 days from the effective date of the settlement agreement, and the people's court shall, in a timely manner, examine the settlement agreement and confirm its validity in accordance with the law.

If the people's court confirms the validity of the settlement agreement in accordance with the law and either of the parties refuses to or fails to fully perform the same, the other party may apply to the people's court for enforcement.

If the people's court confirms the settlement agreement to be invalid in accordance with the law, the parties may amend the original settlement agreement or reach a new settlement agreement through people's mediation or, alternatively, they may institute a legal action in the people's court.

Part Six: Supplementary provisions

Article 34: Small towns, neighbourhoods, associations and other organisations may, as required and with reference to the relevant provisions hereof, establish people's mediation committees to mediate private disputes.

Article 35: This Law shall be effective as of January 1 2011.