Labour Law

The Labour Contract Law, which covers all workers in China, changed on January 1 2008, in an effort to address the rising number of labour disputes. It covers areas such as severance pay, probationary periods, mass layoffs, non-compete clauses and collective bargaining. It requires that contracts be put in writing within one month of employment, and gives clear recourse to employees whose rights have been violated. Much will depend on how the law is implemented, with some experts suggesting it will be more rigorously enforced against foreign companies than domestic ones. An English translation can be found on the American Chamber of Commerce Shanghai’s website (www.amcham-shanghai.org).

HR professionals suggest that if you are badly treated at work, you should first complain to your personnel department, preferably in writing, with evidence to back your case. If there’s no change after that it could be time to speak to a lawyer. Try to find a reliable Chinese lawyer as they will be more familiar with the local regulations. If your company is seeking to fire you for any reason, they should give you one month’s notice, first providing verbal and written warnings in cases of alleged misconduct. Another resource can be your own embassy, which should be able to put you in touch with a lawyer.

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