Chapter I General Provisions

Article 1 The Labor Contract Law of the People's Republic of China (Revised in 2012) (hereinafter referred to as the "Law") is enacted to improve the labor contract system, specify the rights and obligations of both parties to a labor contract, protect the legitimate rights and interests of employees, and build and develop stable and harmonious labor relations.

Article 2 The Law applies to the conclusion, performance, change, rescission or termination of labor contracts between and by organizations, such as enterprises, individually-owned economic organizations and private non-enterprises, within the territory of the People's Republic of China (hereinafter referred to as "employers") and the employees with which they establish labor relations.
The conclusion, performance, change, rescission or termination of labor contracts between and by State organs, public institutions or social organizations and the employees with which they establish labor relations is subject to the Law.


Article 3 The conclusion of a labor contract shall follow the principles of lawfulness, fairness, equality and willingness, consensus consultation and good faith.
Labor contracts that are legally concluded are binding, and employers and employees shall perform the obligations stipulated therein.


Article 4 An employer shall legally establish and improve labor rules and systems, and ensure that its employees enjoy labor rights and perform labor obligations.
Where an employer formulates, amends or decides on the rules and systems or important matters that are directly related to the vital interests of its employees, such as labor remuneration, working hours, rest time and vacations, labor safety and health, insurance benefits, employee training, labor discipline and quota labor management, it shall, upon discussion with the employees' assembly or all employees, put forward proposals and suggestions thereon and determine the maters through equal consultation with the labor union or employees' representatives.
In the process of decision-making or implementation of any rule or system or important matter, a labor union or employee, when deeming it improper, has the right to raise the issue to the employer, and amendments thereto and improvements thereon shall be made through consultation.
An employer shall publicly announce to the public the decisions on rules and systems or important matters that are directly related to the vital interests of its employees, or inform its employees of such decisions.


Article 5 The labor administrative department of a people's government at or above the county level shall, in concert with labor unions and representatives of enterprises, establish and improve a three-party mechanism for coordinating labor relations to jointly study and solve important issues relevant to labor relations.

Article 6 A labor union shall help and guide employees to legally conclude and perform labor contracts with employers, and establish a collective consultation mechanism with employers to protect the legitimate rights and interests of employees.

Chapter II Conclusion of Labor Contracts

Article 7 An employer establishes a labor relation with an employee on the day of employment. An employer shall set up a register of employees for future reference.

Article 8 When recruiting an employee, the employer shall faithfully inform the employee of the job description, working conditions, working place, occupational hazards, work safety status and labor remuneration, as well as other information to be informed upon request by the employee. The employer has the right to understand the basic information of the employee that is directly related to the labor contract, and the employee shall state the information faithfully.


Article 9 When recruiting an employee, the employer may neither detain the resident identity card and other certificates of the employee, nor request the employee to provide guarantee or collect property from the employee in other names.

Article 10 In the event of establishment of a labor relation, a written labor contract shall be concluded.
Where a labor relation is established but no written labor contract is concluded at the same time, a written labor contract shall be concluded within one month from the day of employment.
Where an employer concludes a labor contract with an employee before employing the employee, a labor relation shall be established on the day of employment.


Article 11 Where an employer fails to conclude a written labor contract while employing an employee, and the labor remuneration agreed with the employee is not clear, the labor remuneration of the employee newly recruited is subject to the standard provided in the collective contract; where there is no collective contract or there is no provision in the collective contract, the employee is given equal pay for equal work.

Article 12 Labor contracts are divided into fixed-term labor contracts, unfixed-term labor contracts and labor contracts setting the completion of a certain task as the term.


Article 13 Fixed-term labor contract refers to a labor contract of which an employer and an employee agree on the termination date.
Where an employer and an employee reach a consensus through consultation, they may conclude a fixed-term labor contract.

Article 14 Unfixed-term labor contract refers to a labor contract of which an employer and an employee agree not to set the termination date.
Where an employer and an employee reach a consensus through consultation, they may conclude an unfixed-term labor contract. Where the employee requests or agrees to renew or conclude a labor contract, an unfixed-term labor contract shall be concluded, unless the employee requests the conclusion of a fixed-term labor contract, if:
1. the employee has been working with the employer for at least ten consecutive years;
2. when the employer implements the labor contract system for the first time or a new labor contract is concluded due to restructuring of a State-owned enterprise, the employee has been working with the employer for at least ten consecutive years and there are less than ten years before the statutory retirement age; or
3. a fixed-term labor contract has been concluded for two consecutive times and the labor contract is renewed for the employee who is not under any of the circumstances specified in Article 39 and Items 1 and 2 of Article 40 hereof.
Where an employer fails to conclude a written labor contract with an employee for at least one year from the day of employment, an unfixed-term labor contract is deemed to have been concluded between the employer and the employee.


Article 15 Labor contract setting the completion of a certain task as the term refers to a labor contract of which an employer and an employee agree to set the completion of a particular work as the term.
Where an employer and an employee reach a consensus through consultation, they may conclude a labor contract setting the completion of a certain task as the term.

Article 16 A labor contract becomes effective when an employer and an employee sign or affix a seal to the text of the labor contract after reaching a consensus through consultation.
Each of the employer and the employee shall hold one copy of the text of the labor contract respectively.


Article 17 A labor contract shall contain the following terms and conditions:
1. the name, domicile and legal representative or major responsible person of the employer;
2. the name, domicile and the number of resident identity card or of other valid identity document of the employee;
3. the term of the labor contract;
4. the job description and the working place;
5. the working hours, and rest time and vacations;
6. labor remuneration;
7. social insurance;
8. labor protection, labor conditions and protection against occupational hazards; and
9. other matters required by laws and regulations to be included in the labor contract.
In addition to the essential terms and conditions provided in the preceding paragraph, the employer and the employee may specify other matters such as the probationary period, training, confidentiality, supplementary insurance and benefits in the labor contract.


Article 18 Where the standards such as labor remuneration and labor conditions as specified in a labor contract are not clear, resulting in a dispute, the employer and the employee may hold a new consultation; if such consultation fails, the provisions of the collective contract shall apply; if there is no collective contract or the collective contract does not provide for labor remuneration, equal pay for equal work shall be adopted; if there is no collective contract or the collective contract does not provide for the standards such as labor conditions, the relevant provisions of the State shall apply.


Article 19 Where the term of a labor contract is more than three months but not more than one year, the probationary period shall not exceed one month. Where the term of a labor contract is more than one year but not more than three years, the probationary period shall not exceed two months. The probationary period of a labor contract with a fixed term of more than three years or with an unfixed term shall not exceed six months.
An employer may agree on only one probationary period with the same employee.
Where the term of a labor contract depends on the completion of a certain task or is not more than three months, no probationary period may be stipulated.
A probationary period shall be included in the term of a labor contract. Where only a probationary period is stipulated in a labor contract, the probationary period shall be invalid and such period shall be the term of the labor contract.


Article 20 The wage of an employee in the probationary period may not be lower than the minimum wage of the same position of the employer or 80% of the wage stipulated in the labor contract, and may not be lower than the minimum wage standard in the place of location of the employer.

Article 21 In the probationary period, an employer may not rescind any labor contract unless the employee is under any of the circumstances prescribed in Article 39 and Items 1 and 2 of Article 40 hereof. Where an employer rescinds a labor contract during the probationary period, the reason therefor shall be stated to the employee.

Article 22 Where an employer provides special training fees to an employee for training on special skills, it may conclude an agreement with the employee and specify the term of service.
Where an employee violates the stipulation on the term of service, it shall pay liquidated damages to the employer as stipulated. The amount of such liquidated damages may not exceed the training fees provided by the employer. The liquidated damages that the employer requires the employee to pay may not exceed the training fees to be apportioned in the remaining part of the term of service.
Where an employer and an employee agree on the term of service, the increase in labor remuneration of the employee during the term of service according to the normal wage adjustment mechanism shall not be affected.


Article 23 An employer and an employee may specify, in the labor contract, that the employer's trade secrets and confidential matters relevant to intellectual property rights shall be kept confidential.
With regard to an employee subject to confidentiality obligation, the employer may agree on the competition restriction clause in the labor contract or the confidentiality agreement with the employee, and agree on the economic compensation monthly paid to the employee within the competition restriction period after the rescission or termination of the labor contract. Where the employee violates the competition restriction clause, he/she shall pay liquidated damages as agreed to the employer.


Article 24 The personnel subject to competition restriction are limited to an employer's senior management personnel, senior technical personnel and other personnel obligated to keep secrets. The scope, geographic region and time limit of competition restriction shall be agreed by the employer and the employee, and such agreement on competition restriction may not violate the provisions of laws or regulations.
After the rescission or termination of a labor contract, the time limit of competition restriction for a person prescribed in the preceding paragraph who works with another employer that produces or operates the same type of products or that engages in the same type of business as those of the original employer, or who commences his/her own business in producing or operating the same type of products or engaging in the same type of business shall not exceed two years.


Article 25 Except for the circumstances prescribed in Articles 22 and 23 hereof, no employer may agree with an employee on the employee's liability for liquidated damages.

Article 26 A labor contracts shall be invalid or partly invalid if:
1. it is concluded or changed against the true intention of the other party by means of fraud or duress, or by taking advantage of such party's precarious position;
2. the employer exempts itself from the statutory responsibility or excludes the rights of employees; or
3. it violates the mandatory provisions of laws or administrative regulations.
Where there is a dispute over the invalidity or partial invalidity of a labor contract, it shall be confirmed by the labor dispute arbitration authority or the people's court.


Article 27 Where a labor contract is partially invalid, without affecting the validity of other parts, other parts shall remain valid.

Article 28 Where a labor contract is confirmed to be invalid, and the employee has already worked for the employer, the employer shall pay labor remuneration to the employee. The amount of labor remuneration shall be determined with reference to the labor remuneration of an employee of the same or similar position of the employer.

Chapter III Performance and Change of Labor Contracts

Article 29 An employer and an employee shall fully perform their respective obligations as stipulated in the labor contract.


Article 30 An employer shall, according to the labor contract and the provisions of the State, timely pay labor remuneration in full to an employee.
Where the employer defaults on labor remuneration or fails to pay labor remuneration in full, the employee may legally apply to the local people's court for a payment order, and the people's court shall legally issue the payment order.

Article 31 An employer shall strictly implement the labor quota standard, and may not force, or force in disguised form, an employee to work overtime. Where an employer arranges for overtime work, it shall make overtime payment to the employee in accordance with the relevant provisions of the State.


Article 32 Where an employee refuses to follow the instructions against regulations from, or forced dangerous operation required by, the management personnel of an employer, such act is not deemed as breach of the labor contract.
An employee has the right to make criticisms, report or accusation against an employer in respect of labor conditions endangering the safety of life and physical health.

Article 33 Where an employer changes its name, legal representative, major responsible person, investors or other matters, the performance of the labor contract shall not be affected.


Article 34 Where an employer is under a circumstance such as merger or division, the original labor contract shall continue to be valid and shall be performed by the employer that succeeds its rights and obligations.


Article 35 An employer and an employee may change the content stipulated in the labor contract after reaching a consensus through consultation. Any change of a labor contract shall be made in writing.
Each of the employer and the employee shall hold one copy of the text of the changed labor contract respectively.


Chapter IV Rescission and Termination of Labor Contracts

Article 36 Where an employer and an employee reach a consensus through consultation, they may rescind the labor contract.


Article 37 An employee may rescind a labor contract by giving the employer a written notice 30 days in advance. An employee may rescind a labor contract within the probationary period by giving the employer a notice three days in advance.


Article 38 An employee may rescind the labor contract when an employer is under any of the following circumstances:
1. failing to provide labor protection or labor conditions as stipulated in the labor contract;
2. failing to timely pay labor remuneration in full;
3. failing to pay social insurance premiums for the employee in accordance with the law;
4. the rules and systems of the employer violate laws and regulations, and harm the rights and interests of its employees;
5. the labor contract is invalid due to the circumstances prescribed in Paragraph 1 of Article 26 hereof; and
6. other circumstances provided in laws or administrative regulations under which the employee may rescind the labor contract.
Where an employer coerces an employee into labor by means of violence, threat or illegal restriction of personal freedom or an employer gives instructions in violation of regulations to, or compels dangerous operations from, an employee, endangering the personal safety of the employee, the employee may immediately rescind the labor contract without giving any prior notice to the employer.


Article 39 An employer may rescind the labor contract if the employee:
1. is confirmed to fail to meet the employment conditions in the probationary period;
2. seriously violates the rules and systems of the employer;
3. is in serious dereliction of duty or engages in malpractices for selfish ends, causing significant harm to the employer;
4. establishes a labor relation with another employer at the same time, having serious impact on the completion of tasks of the employer, or refuses to make corrections after the employer informs the employee of the issue;
5. causes the invalidity of the labor contract due to the circumstance prescribed in Item 1 of Paragraph 1 of Article 26 hereof; or
6. is criminally prosecuted in accordance with the law.


Article 40 Under any of the following circumstances, an employer may rescind the labor contract after giving the employee a written notice 30 days in advance or paying to the employee an additional month of wage:
1. the employee suffers from an illness or non-work-related injury, and, after the prescribed medical treatment period expires, cannot engage in the original work or perform other work arranged by the employer;
2. the employee is not qualified for the work, and after training is given or the position is changed, the employee still fails to be qualified for the work; and
3. there is a significant change in the objective circumstance on which the conclusion of the labor contract is based, resulting in the non-performance of the labor contract, and the employer and the employee, through consultation, fail to reach any agreement in respect of the change in the content of the labor contract.


Article 41 Under any of the following circumstances, where there is a need to lay off 20 or more employees or such number of employees as is less than 20 but accounts for more than 10% of the total number of employees, the employer shall explain the situation to the labor union or all employees 30 days in advance and, after soliciting the opinions of the labor union or employees and submitting the layoff plan to the labor administrative department, may make the layoff:
1. where the employer is restructured in accordance with the provisions of the Enterprise Bankruptcy Law;
2. where there is a serious difficulty in production or operation;
3. where there is a change of production, significant technical innovation or adjustment of the mode of operation of the enterprise, layoff still needs to be made after the change of labor contracts; and
4. where there is a significant change in other objective economic conditions on which the conclusion of the labor contract is based, resulting in the non-performance of the labor contract.
When making the layoff, the following employees shall be retained in priority:
1. the employees who have concluded fixed-term labor contracts of relatively longer periods with the employer;
2. the employees who have concluded unfixed-term labor contracts with the employer; and
3. the employees whose families have no other employed persons and have the elderly or the underage to support.
Where an employer makes the layoff in accordance with Paragraph 1 of the present article and undertakes new recruitment within six months, the employer shall inform the laid-off employees of the new recruitment and give priority to the recruitment of the same under the same terms.


Article 42 An employer may not rescind a labor contract pursuant to Article 40 or Article 41 hereof if an employee:
1. is exposed to an occupational disease hazard and fails to complete a pre-departure occupational health examination, or is suspected of having an occupational disease and is being diagnosed or under medical observation;
2. suffers from an occupational disease or work-related injury during the term of service and is confirmed to have lost the ability to work partially or entirely;
3. suffers from an illness or non-work-related injury and is under the prescribed medical treatment period;
4. is a female and is going through the pregnancy, perinatal or lactation period;
5. has been working with the employer for at least 15 consecutive years and there is less than five years before the statutory retirement age; or
6. is under other circumstances prescribed by laws or administrative regulations.


Article 43 Where an employer rescinds a labor contract unilaterally, it shall notify the labor union of the reasons thereof in advance. Where an employer violates the provisions of laws or administrative regulations or a labor contract, the labor union has the right to require the employer to make a rectification. The employer shall take into consideration the opinions of the labor union and notify in writing the labor union of the handling result.


Article 44 A labor contract shall be terminated if:
1. the labor contract expires;
2. the employee starts to enjoy the basic endowment insurance in accordance with the law;
3. the employee is dead, or is declared dead or missing by a people's court;
4. the employer is declared bankrupt in accordance with the law;
5. the employer's business license is revoked, or the employer is ordered to close down, or cancelled, or decides to dissolve in advance; or
6. it is under other circumstances prescribed by laws or administrative regulations.


Article 45 Where a labor contract expires and is under any of the circumstances prescribed in Article 42 hereof, the labor contract shall be extended, and terminated until the corresponding circumstance disappears. However, in respect of the termination of the labor contract of an employee without full or partial work ability lost under Item 2 of Article 42 hereof, the provisions of the State regarding work-related injury insurance shall apply.


Article 46 An employer shall pay economic compensation to an employee if:
1. the employee rescinds the labor contract in accordance with Article 38 hereof;
2. the employer, in accordance with Article 36 hereof, proposes to rescind the labor contract with the employee and reaches a consensus with the employee through consultation;
3. the employer rescinds the labor contract in accordance with Article 40 hereof;
4. the employer rescinds the labor contract in accordance with Paragraph 1 of Article 41 hereof;
5. the fixed-term labor contract is terminated in accordance with Item 1 of Article 44 hereof, unless the employer renews the labor contract by maintaining or raising the conditions stipulated in the labor contract and the employee disagrees with such renewal;
6. the labor contract is terminated in accordance with Item 4 or 5 of Article 44 hereof; or
7. it is under other circumstances prescribed by laws or administrative regulations.


Article 47 Economic compensation shall be paid to an employee according to the employee's length of service for the employer and the standard of paying one month of wage for each full year of service. If such length of service is more than six months but less than one year, it shall be treated as one year; if such length of service is not more than six months, half a month of wage shall be paid to the employee as economic compensation.
Where the monthly wage of an employee is greater than three times the average monthly wage of local employees of the previous year announced by the people's government at the level of municipality directly under the Central Government or city with districts at the place where the employer is located, economic compensation shall be paid to the employee according to the amount of three times the average monthly wage of employees, with the maximum length of service for such economic compensation not exceed 12 years.
For the purpose of this article, monthly wage refers to the average wage of an employee within 12 months before the rescission or termination of his or her labor contract.


Article 48 Where an employer, in violation of the provisions of the Law, rescinds or terminates a labor contract, and the employee requests the continued performance of the labor contract, the employer shall continue to perform the labor contract. Where the employee does not request the continued performance of the labor contract or the labor contract cannot continue to be performed, the employer shall pay compensation in accordance with Article 87 hereof.


Article 49 The State adopts measures to establish and improve a system for trans-regional transfer of social insurance accounts for employees.

Article 50 An employer shall issue the proof of rescission or termination of the labor contract when making such rescission or termination, and handle the transfer procedures for archives and social insurance accounts for employees within 15 days.
An employee shall hand over the work as agreed by both parties. Where an employer is required to pay economic compensation to an employee in accordance with the relevant provisions of the Law, such economic compensation shall be paid at the time of handing over the work.
The employer shall keep the text of the labor contracts that are rescinded or terminated for at least two years for future reference.


Chapter V Special Provisions

Section 1 Collective Contracts

Article 51 The employees of an enterprise may conclude a collective contract on matters, such as labor remuneration, working hours, rest time and vacations, labor safety and health, and insurance benefits, with the employer through fair consultation. The draft of a collective contract shall be submitted to the employees' assembly or all employees for discussion and adoption.
A collective contract is concluded by a labor union on behalf of the employees with the employer; or, where the employer has not established a labor union yet, is concluded, under the guidance of the labor union at a higher level, by the representative selected by the employees with the employer.

Article 52 The employees of an enterprise may conclude special collective contracts with the employer in respect of matters such as labor safety and health, protection of the rights and interests of female employees and a wage adjustment mechanism.

Article 53 In respect of the regions below the county level, the labor unions may conclude industrial collective contracts or regional collective contracts with the representatives of enterprises in the industries such as the construction industry, the mining industry and the catering industry.

Article 54 A collective contract shall, after conclusion, be submitted to the labor administrative department; and the collective contract shall become effective if the labor administrative department does not raise any opposition within 15 days of receipt of the text of the collective contract.
A collective contract legally concluded is binding on the employer and the employees. The industrial or regional collective contracts are binding on the employers and the employees of the same industry or the same region.

Article 55 The labor remuneration, labor conditions and other standards under a collective contract shall not be lower than the minimum standard prescribed by a local people's government; and the labor remuneration, labor conditions and other standards under the labor contract concluded by an employer and an employee shall not be lower than the standard provided in the collective contract.

Article 56 Where an employer, in violation of a collective contract, infringes on the labor rights and interests of an employee, the labor union may require the employer to bear liability legally; or, where a dispute arising from the performance of the collective contract fails to be settled through consultation, the labor union may apply for arbitration or initiate litigation in accordance with the law.

Section 2 Labor Dispatch

Article 57 Enterprises engaging in labor dispatch business shall meet the following requirements:
1. have a registered capital of no less than CNY2 million;
2. have appropriate fixed place of business and facilities to conduct the business;
3. have labor dispatch management systems complying with the provisions of the laws and administrative regulations; and
4. other conditions provided by the laws and administrative regulations.
Enterprises engaging in labor dispatch business shall apply for administrative license to the labor administrative departments in accordance with the law; and shall then go through the formalities for corresponding company registration upon obtaining such license. Without license, no entity or individual may engage in labor dispatch business.


Article 58 A labor dispatch entity is an employer as referred to in the Law, and shall perform the obligations of an employer to an employee. A labor contract concluded by a labor dispatch entity and a dispatched employee shall state the entity accepting the dispatched employee, as well as the term of dispatch, work position and other information, in addition to the matters prescribed in Article 17 hereof.
A labor dispatch entity shall conclude a labor contract with a fixed term of more than two years with a dispatched employee and pay labor remuneration on a monthly basis; during the period that the dispatched employee is jobless, the labor dispatch entity shall pay remuneration monthly to the dispatched employee according to the minimum wage standard prescribed by the local people's government.


Article 59 Where a labor dispatch entity dispatches an employee, it shall conclude a labor dispatch agreement with the entity that accepts the employment in the form of labor dispatch (hereinafter referred to as "accepting entity"). A labor dispatch agreement shall stipulate the dispatch position and personnel number, the term of dispatch, the labor remuneration, and the amount and payment method of social insurance, as well as the liability for breach of the agreement.
An accepting entity shall confirm the term of dispatch with the labor dispatch entity based on the actual need of the position, and shall not divide a consecutive employment period and conclude several short-term labor dispatch agreements.


Article 60 A labor dispatch entity shall inform a dispatched employee of the content of the labor dispatch agreement.
A labor dispatch entity may not withhold the labor remuneration that is paid by the accepting entity to a dispatched employee in accordance with the labor dispatch agreement.
No labor dispatch entity or accepting entity may collect any fees from a dispatched employee.


Article 61 Where a labor dispatch entity dispatches an employee to another region, the labor remuneration and the labor conditions enjoyed by the dispatched employee shall be subject to the standard of the place where the accepting entity is located.


Article 62 An accepting entity shall perform the following obligations:
1. implementing the national labor standards and providing the corresponding labor conditions and labor protection;
2. informing the dispatched employees of the job requirements and the labor remuneration;
3. paying overtime payment or incentive bonus and providing benefits commensurate with the position;
4. proving training necessary for the position to the serving dispatched employee; and
5. implementing the normal wage adjustment mechanism in the event of consecutive employment.
No accepting entity may dispatch the dispatched employees to other employers.


Article 63 A dispatched employee shall have the equal pay for equal work as the employees of the accepting entity. The accepting entity shall carry out the labor remuneration allocation methods towards the dispatched employee same as those applicable to the employees of the same position thereof in accordance with the principle of equal pay for equal work. Where the accepting entity has no employee of the same position, it shall determine such pay with reference to the labor remuneration of workers of the same or similar position in the local area.
The labor remuneration payable to a dispatched employee as stated or agreed in the labor contract concluded between the labor dispatch entity and the dispatched employee or the labor dispatch agreement concluded between the labor dispatch entity and the accepting entity shall conform to the provisions of the preceding paragraph.


Article 64 A dispatched employee has the right to participate in or organize a labor union of the labor dispatch entity or the accepting entity to protect his or her legitimate rights and interests.


Article 65 A dispatched employee may rescind the labor contract with the labor dispatch entity in accordance with Article 36 or 38 hereof.
Where the dispatched employee is under any of the circumstances prescribed in Article 39 and Items 1 and 2 of Article 40 hereof, the accepting entity may send the employee back to the labor dispatch entity, and the labor dispatch entity may rescind the labor contract with the employee in accordance with the relevant provisions of the Law.


Article 66 Labor contract employment is the basic employment form of enterprises in China. Labor dispatch employment is a supplement form which can only be adopted for temporary, auxiliary or alternative job positions.
For the purposes the preceding paragraph, temporary job position refers to a position the term of which will not exceed six months; auxiliary job position refers to a non-primary business position aiming to provide service to the primary business position; and alternative job position refers to a position where the employee of the accepting entity who cannot work for a given period due to full-time study, vocation or other reasons can be substituted by another employee.
An accepting entity shall strictly control the number of dispatched employees, and such number may not exceed a percentage of its total number of employees, which is stipulated by the labor administrative department of the State Council.


Article 67 No employer may establish a labor dispatch entity to dispatch employees to itself or to any affiliated entities.


Section 3 Part-time Employment

Article 68 Part-time employment refers to the form of employment whereby remuneration is calculated on an hourly basis and an employee generally works with an employer for not more than four hours a day on average and for not more than 24 hours a week on a cumulative basis.


Article 69 Both parties to part-time employment may conclude an oral agreement.
An employee who engages in part-time employment may conclude labor contract(s) with one or more employers. However, a labor contract concluded at a later date may not affect the performance of a labor contract concluded at an earlier date.

Article 70 No probationary period may be agreed by both parties to part-time employment.

Article 71 Either party to part-time employment may inform the other party of the termination of such employment at any time. If such employment is terminated, the employer is not to pay economic remuneration to the employee.

Article 72 The calculation standard of hourly pay for part-time employment may not be lower than the minimum hourly wage standard prescribed by the people's government at the place where the employer is located.
The cycle for settlement and payment for part-time employment shall not exceed 15 days.

Chapter VI Supervision and Inspection

Article 73 The labor administrative department under the State Council is responsible for the supervision and administration of the implementation of the labor contract system nationwide.
The labor administrative departments of local people's governments at or above the county level are responsible for the supervision and administration of the implementation of the labor contract system within their respective administrative regions.
The labor administrative departments at all levels of the people's governments at or above the county level shall, in the supervision and administration of the implementation of the labor contract system, listen to opinions from labor unions, enterprise representatives and the departments in charge of the relevant industries.

Article 74 The labor administrative departments of local people's governments at or above the county level shall supervise and inspect the following information in respect of the implementation of the labor contract system:
1. the formulation by employers of rules and systems that are directly related to the vital interests of employees, and the implementation thereof;
2. the conclusion and rescission of labor contracts by employers and employees;
3. the compliance with the relevant provisions on labor dispatch by labor dispatch entities and accepting entities;
4. the compliance with the provisions of the State on the working hours and rest time and vacations of employees by employers;
5. the payment of labor remuneration as stipulated in labor contracts and the implementation of the minimum wage standard by employers;
6. the participation in various social insurance, and the payment of social insurance premiums, by employers; and
7. other labor supervision matters prescribed by laws and regulations.

Article 75 During the supervision and inspection, the labor administrative department of a local people's government at or above the county level has the right to consult the materials relevant to labor contracts or collective contracts and to conduct spot inspection over the workplaces, and employers and employees shall faithfully provide the relevant information and materials.
In conducting supervision and inspection, the staff members of the labor administrative department shall present their permit, exercise their duties legally and enforce law in a civil manner.

Article 76 The relevant departments of the people's governments at or above the county level in charge of construction, health, work safety supervision and administration, shall supervise and administer the implementation of the labor contract system by employers within the scope of their respective duties.

Article 77 Where the legitimate rights and interests of employees are infringed upon, they have the right to request the relevant departments to handle the infringement in accordance with the law, or to apply for arbitration or initiate litigation in accordance with the law.

Article 78 Labor unions protect the legitimate rights and interests of employees and supervise the performance of labor contracts and collective contracts by employers, in accordance with the law. Where an employer violates any labor laws or regulations, or labor contract or collective contract, a labor union has the right to put forward its opinions or to require for rectification; where an employee applies for arbitration or initiates litigation, the labor union shall offer support and assistance in accordance with the law.

Article 79 An organization or individual has the right to report any acts violating the Law, and the labor administrative department of a people's governments at or above the county level shall timely verify and handle such acts and reward the personnel who make the report.

Chapter VII Legal Liability

Article 80 Where the rules and systems of an employer that are directly related to the vital interests of employees violate the provisions of laws or regulations, the labor administrative department concerned shall order such employer to make corrections and issue a warning thereto; or, if harm is caused to the employees, the employer shall bear compensation liability.


Article 81 Where the text of a labor contract provided by an employer fails to state the essential clauses of a labor contract prescribed by the Law or an employer does not deliver the text of the labor contract to an employee, the labor administrative department concerned shall order the employer to make corrections; where harm is caused to the employee, the employer shall bear compensation liability.

Article 82 Where an employer fails to conclude a written labor contract with an employee for more than one month but less than one year from the day of employment, it shall pay two times the wage to the employee each month.
Where an employer, in violation of the provisions of the Law, fails to conclude an unfixed-term labor contract with an employee, the employer shall pay two times the wage to the employee each month from the date of conclusion of the unfixed-term labor contract.


Article 83 Where an employer, in violation of the provisions of the Law, agrees on a probationary period with an employee, the labor administrative department concerned shall order the employer to make corrections; where the probationary period agreed upon illegally has been performed, the employer shall pay compensation to the employee according to the standard of the monthly wage of the employee after the probationary period expires and the period that has been performed in excess of the statutory probationary period.


Article 84 Where an employer, in violation of the provisions of the Law, detains certificates such as the resident identity card of an employee, the labor administrative department concerned shall order the employer to return such certificates to the employee within a time limit, and punish the employer in accordance with the provisions of the relevant laws.
Where an employer, in violation of the provisions of the Law, collects property from an employee in the name of security or others names, the labor administrative department concerned shall order the employer to return such property to the employee and impose a fine of more than CNY500 but less than CNY2,000 per person; where harm is caused to the employee, the employer shall bear compensation liability.
Where an employee legally rescinds or terminates a labor contract and the employer detains the archives or other articles of the employee, punishment shall be imposed in accordance with the provisions of the preceding paragraph.

Article 85 Where an employer is under any of the following circumstances, the labor administrative department concerned shall order the employer to pay labor remuneration, overtime payment or economic compensation within a time limit; if the labor remuneration is lower than the local minimum wage standard, the difference shall be paid; in the event of failure to pay within the time limit, the employer shall be ordered to pay additional compensation to the employee at the standard of more than 50% but less than 100% of the payable amount:
1. failure to timely pay labor remuneration in full to the employee as stipulated in the labor contract or according to the provisions of the State;
2. the wage paid to the employee is lower than the local minimum wage standard;
3. failure to make overtime payment for overtime work; and
4. failure to pay economic compensation to the employee in accordance with the provisions of the Law for the rescission or termination of a labor contract.


Article 86 Where a labor contract is confirmed to be invalid in accordance with Article 26 hereof, causing harm to both parties, the party at fault shall bear compensation liability.

Article 87 Where an employer, in violation of the provisions of the Law, rescinds or terminates a labor contract, compensation shall be paid to the employee at a rate of two times the economic compensation standard prescribed in Article 47 hereof.


Article 88 An employer that is under any of the following circumstances shall be subject to administrative punishment in accordance with the law; if a crime is committed, shall be criminally prosecuted in accordance with the law; or, if harm is caused to employees, shall bear compensation liability:
1. coercion into labor services by means of violence, threat or illegal restriction of personal freedom;
2. giving instructions in violation of regulations or coercion to dangerous operations that endanger the personal safety of employees;
3. insult, physical punishment, hit, illegal search or detention of employees; and
4. bad labor conditions or serious environmental pollution, resulting in serious harm to the physical and mental health of employees.


Article 89 Where an employer, in violation of the provisions of the Law, fails to issue to an employee a written proof for the rescission or termination of the labor contract, the labor administrative department shall order the employer to make corrections; where harm is caused to the employee, the employer shall bear compensation liability.


Article 90 Where an employee, in violation of the provisions of the Law, rescinds a labor contract, or violates the confidentiality obligation or competition restriction stipulated in the labor contract, causing harm to the employer, the employee shall bear compensation liability.


Article 91 Where an employer recruits an employee whose labor contract concluded with another employer has not been rescinded or terminated, causing loss to another employer, it shall bear joint and several compensation liability.


Article 92 In case of engaging in labor dispatch business without license in violation of the provisions of the Law, the labor administrative department concerned shall issue an order on cease of the illegal act and confiscate illegal gains and give a fine of not less than the amount of such illegal gains but not more than five times such amount; and in case of no illegal gains, a fine of not more than CNY50,000 shall be given.
Where the labor dispatch entity or the accepting entity violates the provisions of the Law on labor dispatch, the labor administrative department concerned shall order it to make correction within a prescribed time limit; in case of failure to make correction within the prescribed time limit, a fine shall be given as per the standard of CNY5,000-10,000 per person, and the business license for labor dispatch of the labor dispatch entity shall be revoked. Where the accepting entity causes any damage to the dispatched employee, the labor dispatch entity and the accepting entity shall be jointly and severally liable for compensation.


Article 93 With regard to illegal and criminal activities of an employer without the lawful operation qualification, legal liability shall be pursued in accordance with the law; where an employee has already worked for the employer, such entity or its capital contributors shall pay labor remuneration, economic compensation and damages to the employee in accordance with the relevant provisions of the Law; where harm is caused to the employee, it shall bear compensation liability.

Article 94 Where an individual engaging in contracted management recruits an employee in violation of the provisions of the Law, causing harm to the employee, the contracting organization and the individual engaging in contracted management shall bear joint and several compensation liability.

Article 95 Where a labor administrative department or other relevant competent departments and the personnel thereof are derelict of duty, or fail to perform their statutory duties, or exercise authority illegally, causing damage to an employee or an employer, they shall bear compensation liability; the directly responsible person in charge or other directly responsible persons shall be subject to administrative sanction in accordance with the law; or if a crime is committed, criminal liability shall be pursued in accordance with the law.

Chapter VIII Supplementary Provisions

Article 96 For the conclusion, performance, change, rescission or termination of a labor contract between a public institution and any staff member under the recruitment system, if it is otherwise provided for by the laws, administrative regulations or the State Council, such provisions shall apply; in the absence of such provisions, the relevant provisions of the Law apply.

Article 97 If a labor contract has been concluded in accordance with the law prior to the implementation of the Law and continues to exist after the implementation of the Law, such labor contract shall continue to be performed; the number of times of the continuous conclusion of a fixed-term labor contract prescribed in Item 3, Paragraph 2 of Article 14 hereof shall be calculated from the renewal of the fixed-term labor contract following the implementation of the Law.
With regard to a labor relation that has been established prior to the implementation of the Law but no written labor contract is concluded, such labor contract shall be concluded within one month from the implementation of the Law.
Where a labor contract that exists on the effective date of the Law is rescinded or terminated after the effective date of the Law, and economic compensation is required to be paid in accordance with Article 46 hereof, the length of service for economic compensation shall be calculated from the effective date of the Law. Where the relevant provisions prevailing prior to the implementation of the Law require an employer to pay economic compensation to an employee, such relevant provisions shall apply.


Article 98 The Law shall come into force as of January 1, 2008.