Labor contract law needs to be implemented rather than amended

BEIJING—The new Labor Contract Law should be implemented well before being amended, a senior labor official said here on Sunday.
“After it came into effect in January, the law was welcomed by employees and most employers, but we also noticed different views and comments,” Vice Minister of Labor and Social Security Sun Baoshu told a press conference on the sidelines of the annual parliamentary session. The 98-article law, which took effect on Jan. 1, entitles employees with more than 10 years of service to have permanent contracts that bar dismissal without cause.
It also requires employers to contribute to workers’ social security accounts and set wage standards for workers on probation and those working overtime. The law has aroused worries that it will affect the investment environment and raise labor costs. Critics also say that permanent work contracts could put businesses in a weak position. However, said Sun: “Such an interpretation shows an incorrect understanding or lack of understanding of the law.”
Compared with previous regulations, the law relaxes restrictions for ending a contract and improves labor relations, which would actually improve the investment environment, he noted. Sun said that higher labor costs were reasonable. “It is not right and illegal for companies to pursue high profits at low cost, which means at the expense of workers’ rights and interests.” He said that to step up implementation of the law, the government would enhance publicity and inspection. Regulations on enforcement are to be drafted so as to help people better understand it.
China’s senior trade union official said Saturday the Labor Contract Law will not increase the cost of law-abiding employers. “According to our investigation, employers will see very slight increase of cost when following the law,” said Zhang Mingqi, deputy president of the All-China Federation of Trade Unions (ACFTU) and member of the top political advisory body. But those that had minimized the cost through illegal employment practice, such as refusing to pay for employees’ social insurance, will now “cost much more,” said Zhang at a plenary meeting of the 11th National Committee of the Chinese People’s Political Consultative Conference (CPPCC) currently in its first annual full session. “This is what the offenders should have paid.”
The law protects not only employees but also the interests of law-abiding employers, helping form a fair play in the market economy, he said. The Labor Contract Law, taking effect on Jan. 1, includes new regulations such as entitling staff with more than 10 years of service at a company the right to sign contracts without specific time limits that would protect them from dismissal without cause. Some companies complain that such items will reduce labor flow and weaken enterprise vitality. Zhang voiced his confidence in this regard by saying that a contract without specific time limits will help employees feel more attached to their companies and do no harm to employers.—Xinhua