The architects of China's new labour laws took part in a public discussion of the proposed laws and their implications this week. The new laws, which if approved could take effect in 2007, will transform the country's employment infrastructure.

8 June 2006

AMSTERDAM - The architects of China's new labour laws met with leading human resource services company, The Adecco Group and the London Business School this week to take part in a public discussion of the proposed laws and their implications.

If approved, the new laws, which will include making contracts obligatory and economic compensation for lay-offs due to restructuring, could take effect in 2007. The legislation will transform the country's employment infrastructure allowing it to compete effectively with other globalised markets and to comply with international labour standards.
 
These draft labour laws also mark a first for China since the legislative process has been open to consultation from trade and labour organisations, companies and other stakeholders. 
 
Points arrived at from this weeks session include recognition by the Chinese government of the need for institutional review and potential reform of existing Chinese labour laws. Current laws, while no more than 15 years old, no longer adequately balance the economic progress of China with the appropriate level of protection for workers.

There was also a clear indication that human resource services should have a part to play in helping to solve China's labour challenges. The proposed new laws would set new standards for labour dispute resolution and the regulation of employment contracts.
 
"The rapid growth of China as a trading superpower is forcing some of the greatest changes in economic life since the industrial revolution," said Tundé Johnson, of the Adecco Group.

"Understanding the changing dynamics of the Chinese workforce - from migration patterns to skills shortages to new legislation - is critical to success," said Johnson, who believes the new laws "will not only encourage global companies to invest, but they will also have a huge impact on Chinese business in terms of driving improvements and balance in employment contracts, employee protection and responsible labour placement."
 
Professor Alan Neal, Director of the Employment Law Research Unit in the University of Warwick, agreed that companies that do not understand the regulatory environment in terms of labour, or do not adopt a cautious collaborative approach, "are liable to fall foul of the legislation as working arrangements, hiring practices and formal employment contracts will all have to be reviewed and updated."

 
[Copyright Expatica 2006]