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back to index backCHINAtalk April,  2017


New Labor Laws Seek to Pressure Chinese Employers

Employers that violate China's labor protections have been targeted by a pair of measures that took effect Jan. 1, one that calls for the worst offenders to be 'named and shamed,' the other for compliance grades to be assigned to every company.

The idea is to shed public light on domestic and foreign firms across all industries that skirt the country's Labor Law on wages and hours, paying into the social welfare system and other provisions.

Both regulations"the Measures for Announcing Major Violations of Labor Security and the Measures for Credit Rating Evaluation of Enterprise Labor Security Compliance"were issued last summer and are being administered by the Ministry of Human Resources and Social Security (MHRSS).

"It signals the seriousness with which the government views employment law violations and it gives them a new power to enforce," Grace Yang, an attorney specializing in China employment law at Harris Bricken in Seattle, told Bloomberg BNA in a Jan. 27 e-mail.

Labor Disputes on the Rise

The new regulations come during a period of increasing labor unrest in China as economic growth cools and worker expectations rise. According to the Supreme People's Court, new labor disputes accepted by the Chinese court system totaled 483,311 in 2015"a 25 percent increase over the previous year"and kept rising in the first half of 2016.

So-called labor-services disputes, which primarily occur when companies use labor agencies to hire workers, jumped 38 percent in 2015 from 2014, court statistics show.

To read entire article, please click here.

Source: Bloomberg - GAI


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