China: analysis of the new labor dispute law and its impact after six months of its application

The law on mediation and arbitration of labor disputes, adopted on December 29, 2007, entered into force on May 1, 2008, and brought about major changes to the previous mechanism for settling labor disputes, which was introduced in 1993 and found to be particularly inadequate. The increase in social tension caused concern to the central government, which has been hailing the construction of a harmonious society as one of its priorities since 2005. By Aiqing Zheng, associate professor at the faculty of law, Renmin University, China. (Ref. 080985)
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Indeed, this legislation is a truly successful outcome, after the heated debates which lasted over a decade. Its adoption aims to quickly resolve labor disputes that have been developing for the past ten years. Whilst slightly revising the entire mechanism, the law has introduced measures to facilitate employees’ access to the arbitration mechanism. However, this reform has not prevented labor disputes from mushrooming throughout the country during the six months following its application.

Revis

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