Yesterday China's top legislature reviewed the second draft of
the controversial labor contract law but decided against voting on
it.?
The eight-chapter draft that details the establishment,
revocation, revision and termination of labor 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 version made key changes to the first draft
submitted last December in clauses regarding probationary periods,
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 to not exceed six months for a
contract of at least three years.
Companies that lay off more than 20 employees at one time
because of bankruptcy, production or management difficulties and
relocation for environmental protection have to inform staff trade
unions 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 can't work for competitors after leaving it can't be
more than two years, the draft says.
Tian Chengping, minister of labor and social
security, said during the draft's first reading that the existing
labor contract system, set up in line with the Labor Law enacted in
1994, requires updating following dramatic changes in the labor
market.
A lack of minimal labor protection and the imbalance between
labor 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.
Some employers, fearing rising labor costs, strongly oppose the
bill.
However, Xin Chunying, deputy director of NPC's Law Committee,
yesterday said members agree that it's urgent to have a contract
law to protect workers' rights as it is a matter of public interest
and social stability.
(China Daily December 27, 2006)