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Vote on labour contract law put off
Beijing(China)—The country’s
top legislature yesterday reviewed the second draft of the controversial
labour contract law but decided not to vote on it.
The eight-chapter draft that details the establishment, revocation,
revision, and termination of labour contracts will be the first such law
of its kind if passed by the Standing Committee of the National People’s
Congress (NPC). However, disagreements between representatives of
employees and employers have slowed the legislative process, and
lawmakers decided not to vote on the draft at this session pending more
amendments.
The current draft made key changes to the first draft submitted last
December in clauses regarding probationary period, retrenchment and
compensation for the termination of contracts. It requires the probation
period to be no more than one month for a one-year contract; and not
exceed six months for a contract for at least three years.
Companies that lay off more than 20 employees at one time because of
bankruptcy, production or management difficulties, or relocation for
environmental protection, have to inform the trade union or the staff 30
days in advance. The draft leaves the terms of compensation for contract
termination to be set by State Council regulations. Should there be an
agreement between the employer and senior staff on the period the
employee cannot work for competitors after leaving, it cannot be more
than two years, the draft says.
Tian Chengping, minister of labour and social security, said during the
draft’s first reading that the existing labour contract system, set up
in line with the Labour Law enacted in 1994, requires an update
following dramatic changes in the labour market. A lack of minimal
labour protection and the imbalance between labour supply and demand
have resulted in severe infringements of workers’ rights. Millions of
foreign and domestic employers arbitrarily set wages and working hours,
as well as working and living conditions. The NPC received 191,849
public suggestions in one month after the draft was published in March
for consultation. Only the Constitution, in 1954, received more.
—The Daily Mail-China Daily news exchange item |
