1、Labor Contract Law of the Peoples Republic of China2010-08-12 Hits:2566Order of the President of the Peoples Republic of ChinaNo.65The Labor Contract Law of the Peoples Republic of China, adopted at the 28th Meeting of the Standing Committee of the Tenth National Peoples Congress of the Peoples Repu
2、blic of the China on June 29, 2007, is hereby promulgated and shall go into effect as of January 1, 2008.Hu JintaoPresident of the Peoples Republic of ChinaJune 29, 2007Labor Contract Law of the Peoples Republic of China(Adopted at the 28th Meeting of the Standing Committee of the Tenth National Peo
3、ples Congress on June 29, 2007)ContentsChapter I General ProvisionsChapter II Conclusion of a Labor ContractChapter III Performance and Modification of a Labor ContractChapter IV Revocation and Termination of a Labor ContractChapter V Special ProvisionsSection 1 A Collective ContractSection 2 Labor
4、DispatchSection 3 Part-Time EmploymentChapter VI Supervision and InspectionChapter VII Legal ResponsibilityChapter VIII Supplementary ProvisionsChapter I General ProvisionsArticle 1 This Law is enacted in order to improve the labor contract system, define the rights and obligations of both parties t
5、o a labor contract, protect the legitimate rights and interests of workers, and establish and develop a harmonious and stable labor relationship.Article 2 This Law is applicable where organizations such as enterprises, self-employed economic organizations and private non-enterprise units within the
6、territory of the Peoples Republic of China (hereinafter referred to as employing units) establish labor relationships with workers through concluding, performing, modifying, revoking or terminating labor contracts with them.State organs, institutions and public organizations and the workers with who
7、m they are to establish labor relationships shall conclude, perform, modify, revoke or terminate labor contracts in accordance with this Law.Article 3 Labor contracts shall be concluded in adherence to the principles of lawfulness, fairness, equality, voluntariness, consensus through consultation, a
8、nd good faith.A labor contract concluded in accordance with law shall have binding force. Both the employing unit and the worker shall fulfill the obligations stipulated in the labor contract.Article 4 Employing units shall establish and improve labor rules and regulations to ensure that workers enj
9、oy the labor rights and fulfill the labor obligations.When formulating or modifying the rules and regulations, or making decisions on important matters, which have a direct bearing on the immediate interests of workers, such as labor remuneration, working hours, rest and vacation, occupational safet
10、y and health, insurance and welfare, training, labor discipline and labor quota control, the employing unit shall, after discussion by the conference of workers or all the workers, put forward plans and suggestions and make decisions after consulting with the trade union or the representatives of th
11、e workers on an equal footing.If, during the implementation of the rules and regulations or the decisions on important matters, the trade union or the workers hold that such rules, regulations or decisions are inappropriate, it or they are entitled to put forward the opinion to the employing unit, a
12、nd have the rules, regulations or decisions modified and improved through consultation.The employing unit shall make public or inform the workers of the rules and regulations, and the decisions on important matters, which have a direct bearing on the immediate interests of the workers.Article 5 The
13、administrative department of labor of the peoples government at or above the county level shall, together with the representatives of the trade union and the enterprise, establish a sound tripartite mechanism for coordination of labor relationships, in order to jointly discuss and resolve the major
14、issues concerning labor relationships.Article 6 The trade union shall give assistance and guidance to the workers in lawfully concluding labor contracts with the employing unit and performing the same, and establish a collective consultation mechanism with the employing unit in order to protect the
15、legitimate rights and interests of workers.Chapter II Conclusion of a Labor ContractArticle 7 A labor relationship is established by an employing unit with a worker as of the date the former employs the latter. An employing unit shall keep a register of workers for reference.Article 8 When an employ
16、ing unit recruits a worker, it shall truthfully inform him of the job description, the working conditions, the place of work, occupational hazards, conditions for work safety, labor remuneration and other matters which the worker requests to be informed of. The employing unit has the right to acquir
17、e the basic information of the worker which is directly related to the labor contract, and the worker shall truthfully provide the same.Article 9 When recruiting a worker, the employing unit may not detain the workers resident identity card or other certificates, nor may it require him to provide gu
18、aranty or collect money or things of value from him in other names.Article 10 To establish a labor relationship, a written labor contract shall be concluded.In the event that no written labor contract is concluded at the time when a labor relationship is established, such a contract shall be conclud
19、ed within one month as of the date when the employing unit employs a worker.Where an employing unit and a worker conclude a labor contract before the latter starts to work, the labor relationship shall be established as of the date when the latter starts to work.Article 11 In the event that an emplo
20、ying unit fails to conclude a written labor contract with a worker at the same time as it employs him, and labor remuneration agreed upon with him is not definite, the remuneration shall be decided on according to the rate specified in the collective contract; where there is no collective contract o
21、r the collective contract is silent on the matter, equal pay for equal work shall be practiced.Article 12 Labor contracts consist of fixed-term labor contracts, open-ended labor contracts and labor contracts that expire upon completion of given jobs.Article 13 A fixed-term labor contract is one the
22、ending date of which is agreed upon between the employing unit and the worker.An employing unit and a worker may conclude a fixed-term labor contract upon reaching consensus through consultation.Article 14 An open-ended labor contract is one where the employing unit and the worker have agreed not to
23、 stipulate a definite ending date.An employing unit and a worker may conclude an open-ended labor contract upon reaching consensus through consultation. If a worker proposes or agrees to renew the labor contract or to conclude a labor contract in any of the following circumstances, an open-ended lab
24、or contract shall be concluded, unless the worker requests the conclusion of a fixed-term labor contract:(1) The worker has been working for the employing unit for a consecutive period of 10 or more years;(2) The worker has been working for the employing unit for a consecutive period of 10 or more y
25、ears but less than 10 years away from the statutory retirement age when the employing unit introduces the labor contract system or when the State-owned enterprise has to conclude a new labor contract with him as a result of restructuring; or(3) The worker intends to renew the labor contract after he
26、 has consecutively concluded a fixed-term labor contract with the employing unit twice and he has not been found in any of the circumstances specified in Article 39 or Subparagraph (1) or (2) in Article 40 of this Law.If an employing unit fails to conclude a written labor contract with a worker with
27、in one year as of the date when it employs the worker, it shall be deemed to have concluded an open-ended labor contract with the latter.Article 15 A labor contract that expires upon completion of a given job is one in which the employing unit and the worker have agreed that the period for completio
28、n of the given job is the term of the contract.An employing unit and a worker may, upon reaching consensus through consultation, conclude a labor contract which expires upon completion of a given job.Article 16 A labor contract shall become effective when the employing unit and the worker reach agre
29、ement through consultation thereon and both parties sign or affix their seals on the copies of the contract.The employing unit and the worker shall each keep a copy of the labor contract.Article 17 A labor contract shall contain the following terms:(1) name, domicile and legal representative or the
30、principal leading person of the employing unit;(2) name, address and the number of the resident identity card or of other valid identity documents of the worker;(3) term of the labor contract;(4) job description and the place of work;(5) working hours, rest and vacation;(6) labor remuneration;(7) so
31、cial insurance;(8) occupational protection, working conditions and protection against occupational hazards; and(9) other terms which are required to be included in a labor contract, as provided for by laws and regulations.In addition to the requisite terms mentioned above, an employing unit and a wo
32、rker may agree to have other matters stipulated in the labor contract, such as probation period, training, confidentiality, supplementary insurance and welfare benefits.Article 18 If a dispute arises because the labor remuneration rate, the standard for working conditions, etc. are not definitely sp
33、ecified in the labor contract, the employing unit and the worker may negotiate anew. If the negotiation is unsuccessful, the relevant stipulations of the collective contract shall be applicable. If there is no collective contract or the collective contract is silent on the issue of labor remuneratio
34、n, equal pay for equal work shall be practiced. If there is no collective contract or the collective contract is silent on the standards for working conditions, etc., the relevant regulations of the State shall apply.Article 19 If the term of a labor contract is more than three months but less than
35、one year, the probation period may not exceed one month; if the term is more than one year but less than three years, the probation period may not exceed two months; and if the term is fixed for three or more years or is open-ended, the probation period may not exceed six months.An employing unit an
36、d a worker may agree upon only one probation period.No probation period may be stipulated in a labor contract that expires upon completion of a given job or in a labor contract for a term of less than three months.The probation period shall be included in the term of a labor contract. If a labor con
37、tract only provides for a probation period, that period shall not stand and the term provided for shall be the term of the labor contract.Article 20 The wage of a worker on probation shall not be lower than the lowest wage level for the same job of the employing unit or be less than 80 per cent of t
38、he wage agreed upon in the labor contract, and shall not be lower than the minimum wage rate in the place where the employing unit is located.Article 21 An employing unit may not revoke a labor contract during the probation period unless the worker is found in one of the circumstances specified in A
39、rticle 39 or Subparagraph (1) or (2) in Article 40 of this Law. If an employing unit revokes a labor contract during the probation period, it shall explain the reasons to the worker.Article 22 If an employing unit provides special funding for a workers training and gives him professional technical t
40、raining, it may conclude an agreement with the worker specifying the term of service.If the worker breaches the agreement on the term of service, he shall pay a penalty to the employing unit as agreed upon. The sum of the penalty may not exceed the training expenses paid by the employing unit. The p
41、enalty that the employing unit requires the worker to pay may not exceed the portion of the training expenses allocable to the unperformed portion of the term of service.Where the employing unit and the worker reach an agreement on the term of service, the raise in the workers remuneration according
42、 to the regular wage adjustment mechanism during the term of service shall not be adversely affected.Article 23 An employing unit and a worker may have such terms stipulated in the labor contract as keeping business secrets of the employing unit and keeping confidential the matters relating to its i
43、ntellectual property rights.With regard to a worker who has a confidentiality obligation, the employing unit may have stipulated in the labor contract or confidentiality agreement competition restriction and payment of financial compensation to him on a monthly basis during the term of the competiti
44、on restriction after the labor contract is revoked or terminated. If the worker breaches the stipulation on competition restriction, he shall pay penalty to the employing unit as agreed upon.Article 24 The persons subject to competition restriction shall be limited to senior managers, senior technic
45、ians and other persons who are under the confidentiality obligation to the employing unit. The scope, geographic area and term of competition restriction shall be agreed upon by the employing unit and the worker, and such agreement shall not be at variance with the provisions of laws and regulations
46、.The term of competition restriction, calculated from the revocation or termination of the labor contract, for one of the persons, as mentioned in the preceding paragraph, to go to work for a competing employing unit that produces or deals in the same type of products or is engaged in the same type
47、of business as his original employing unit, or to establish his own business to produce or deal in the same type of products or engage in the same type of business shall not exceed two years.Article 25 With the exception of the circumstances specified in Articles 22 and 23 of this Law, an employing
48、unit shall not enter into an agreement with a worker on payment of penalty by the worker for breach of contract.Article 26 A labor contract shall be invalid or partially invalid under one of the following circumstances:(1) The labor contract is concluded or modified against a partys true intention by means of deception or coercion, or when the party is in precarious situations;(2) The employing unit disclaims its statutory responsibility or denies the worker his rights; or(3) The labor contract is at variance with the mandatory provisions of laws or administrative regulation
