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LAWOFTHEPEOPLE'SREPUBLICOFCHINAONEMPLOYMENTCONTRACTSAdoptedatthe28thSessionoftheStandingCommitteeofthe10thNationalPeople'sCongressonJune29,2007EffectivefromJanuary1,2008ByBaker&MCKenzieCHAPTER1GENERALPROVISIONSArticle1ThisLawhasbeenformulatedinordertoimprovetheemploymentcontractsystem,tospecifytherightsandobligationsofthepartiestoemploymentcontracts,toprotectthelawfulrightsandinterestsofEmployeesandtobuildanddevelopharmoniousandstableemploymentrelationships.Article2ThisLawgovernstheestablishmentofemploymentrelationshipsbetween,andtheconclusion,performance,amendment,terminationandendingofemploymentcontractsby,organizationssuchasenterprises,individualeconomicorganizationsandprivatenon-enterpriseunitsinthePeople’sRepublicofChina(“Employers”)ontheonehandandEmployeesinthePeople’sRepublicofChinaontheotherhand.Theconclusion,performance,amendment,terminationandendingofemploymentcontractsbystateauthorities,institutionsorsocialorganizationsontheonehandandEmployeeswithwhomtheyestablishemploymentrelationshipsontheotherhand,shallbehandledpursuanttothisLaw.Article3Theconclusionofemploymentcontractsshallcomplywiththeprinciplesoflawfulness,fairness,equality,freewill,negotiatedconsensusandgoodfaith.Alawfullyconcludedemploymentcontractisbinding,andboththeEmployerandtheEmployeeshallperformtheirrespectiveobligationsstipulatedtherein.Article4Employersshallestablishandimproveinternalrulesandregulations,soastoensurethatEmployeesenjoytheirlaborrightsandperformtheirlaborobligations.WhenanEmployerformulates,revisesordecidesonrulesandregulations,ormaterialmatters,thathaveadirectbearingontheimmediateinterestsofitsEmployees,suchasthoseconcerningcompensation,workhours,rest,leave,worksafetyandhygiene,insurance,benefits,employeetraining,workdisciplineorworkquotamanagement,thesameshallbediscussedbytheemployeerepresentativecongressoralltheemployees.Theemployeerepresentativecongressoralltheemployees,asthecasemaybe,shallputforwardaproposalandcomments,whereuponthemattershallbedeterminedthroughconsultationswiththeTradeunionoremployeerepresentativesconductedonabasisofequality.If,duringtheimplementationofanEmployer’sruleorregulationordecisiononacrucialmatter,theTradeunionoranemployeeisoftheopinionthatthesameisinappropriate,itorheisentitledtocommunicatesuchopiniontotheEmployer,andtherule,regulationordecisionshallbeimprovedbymakingamendmentsafterconsultations.Rulesandregulations,anddecisionsonmaterialmatters,thathaveadirectbearingontheimmediateinterestsofEmployeesshallbemadepublicorbecommunicatedtotheEmployeesbytheEmployer.Article5ThelaboradministrationauthoritiesofPeople’sGovernmentsatthecountylevelandabove,togetherwiththeTradeunionandenterpriserepresentatives,shallestablishacomprehensivetri-partitemechanismforthecoordinationofemploymentrelationships,inordertojointlystudyandresolvemajorissuesconcerningemploymentrelationships.Article6ATradeunionshallassistandguideEmployeesintheconclusionofemploymentcontractswiththeirEmployerandtheperformancethereofinaccordancewiththelaw,andestablishacollectivebargainingmechanismwiththeEmployerinordertosafeguardthelawfulrightsandinterestsofEmployees.CHAPTER2CONCLUSIONOFEMPLOYMENTCONTRACTSArticle7AnEmployer’semploymentrelationshipwithaEmployeeisestablishedonthedateitstartsusingtheEmployee.AnEmployershallkeeparegisterofemployees,forreferencepurposes.Article8WhenanEmployerhiresaEmployee,itshalltruthfullyinformhimastothecontentofthework,theworkingconditions,theplaceofwork,occupationalhazards,productionsafetyconditions,laborcompensationandothermatterswhichtheEmployeerequeststobeinformedabout.TheEmployerhastherighttolearnfromtheEmployeebasicinformationwhichdirectlyrelatestotheemploymentcontract,andtheEmployeeshalltruthfullyprovidethesame.Article9WhenhiringaEmployee,anEmployermaynotretaintheEmployee’sresidentIDcardorotherpapers,normayitrequirehimtoprovidesecurityorcollectpropertyfromhimundersomeotherguise.Article10Toestablishanemploymentrelationship,awrittenemploymentcontractshallbeconcluded.Intheeventthatnowrittenemploymentcontractwasconcludedatthetimeofestablishmentofanemploymentrelationship,awrittenemploymentcontractshallbeconcludedwithinonemonthafterthedateonwhichtheEmployerstartsusingtheEmployee.WhereanEmployerandaEmployeeconcludeanemploymentcontractbeforetheEmployerstartsusingtheEmployee,theemploymentrelationshipshallbeestablishedonthedateonwhichtheEmployerstartsusingtheEmployee.Article11IntheeventthatanEmployerfailstoconcludeawrittenemploymentcontractwithaEmployeeatthetimeitsstartstousehim,anditisnotclearwhatlaborcompensationwasagreeduponwiththeEmployee,thelaborcompensationofthenewEmployeeshallbedecidedpursuanttotheratespecifiedinthecollectivecontract;wherethereisnocollectivecontractorthecollectivecontractissilentonthematter,equalpayshallbegivenforequalwork.Article12Employmentcontractsaredividedintofixed-termemploymentcontracts,open-endedemploymentcontractsandemploymentcontractstoexpireuponcompletionofacertainjob.Article13A“fixed-termemploymentcontract”isanemploymentcontractwhoseendingdateisagreeduponbytheEmployeran