The law on the employment contract and the law on the "establishment and development of harmonious working relationships", adopted by the authorities of the special Shenzhen economic zone, which will come into effect this month, are considered by the defenders of labor rights as laws which should enable to introduce true industrial relations in companies. With an extraordinary rise in labor disputes (+284% during the first trimester of 2008), the government of this kind of liberal free zone is banking on social dialogue to ease the relation between employers and employees. (Ref. 080681)
At the cutting edge of capitalism, the Shenzhen special economic zone is now also at the cutting edge of labor law.
The first milestones for the involvement of workers. The law on harmonious labor relations followed the report by the Shenzhen municipality which pointed out that labor disputes, which usually come from unpaid wages, overtime, dismissal allowances or even social security contributions, had skyrocketed and was increasingly well organized.
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