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Employment disputes in China: Regulatory framework

Employment disputes in China: Regulatory framework Legal Service 涉外法务
2021-03-08
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导读:01—Employment disputes comprise disputes with employee

中国劳动争议解决机制及法律框架解析

劳动争议呈上升趋势,企业须了解仲裁前置与三阶段处理流程

Employment disputes comprise disputes with employees over matters such as termination or dismissal, salary and benefits and compliance with working hours, leave, and other worker protections under Chinese law.

Employment disputes are on the rise in China. In China, most employment disputes must be resolved by following a specific statutory procedure that requires employers and employees to attempt to resolve their dispute through arbitration before beginning litigation.  Regulatory framework Parties must attempt to resolve an employment dispute through arbitration before taking the case to a people's court and must allow time for mediation if either party applies for it before starting arbitration. Chinese employment dispute resolution procedures therefore have three phases:
  • Mediation. This may begin before arbitration and continue through all phases of employment dispute resolution.

  • Arbitration.

  • Litigation (as an appeal of the arbitral decision).

Employers may appeal an arbitral award to a people's court except in limited circumstances. Employees always have the right to appeal an arbitral award to a people's court.

Primary legislation governing this area includes:

  • Law on Labour-dispute Mediation and Arbitration 2007(2007年《劳动争议调解仲裁法》)。

  • Civil Procedure Law 2017(2017年《民事诉讼法》)。

The substantive obligations of employers and employees as well as the scope and nature of the employment relationship in China are primarily governed by:

  • Labour Law 2018(《劳动法》)。

  • Labour Contract Law 2012(2012年《劳动合同法》)。

These laws are supplemented by regulations issued by the Ministry of Human Resources and Social Security (MOHRSS), its local branches, other relevant ministries, and local court rules at provincial and municipal levels.

The Supreme People's Court (SPC) has also issued judicial interpretations to guide the adjudication of labor dispute cases.


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