Doing Business Safely in China

10	Employment

For many foreign investors in China, one of the most important keys to success is the labor force. However, the development of the Chinese economy and the frequency of labor scandals have made the Chinese more aware of the need to implement important changes to Chinese labor law. Following an increase in the demand for greater protection of employees’ rights, Chinese legislators, at both State and local level, have recently promulgated a series of laws and regulations aiming to strengthen employee protection.

At present, the PRC Labor Law (1995) and the PRC Labor Contract Law (2007) are the two laws underpinning the Chinese labor law framework. The recently enacted PRC Labor Contract Law, which aims to provide greater and ...