On 1 August 2025, China’s Supreme People’s Court issued its second legal interpretation on labour disputes, setting out new guidance alongside illustrative case studies. The interpretation, which took effect on 1 September, does not represent a sweeping reform but aims to clarify and standardise rules, strengthening protections for workers while helping employers reduce the risk of disputes
The ‘second legal interpretation on the application of the law in labour disputes in China’, the first of which dates back to 2021, brings to a close a consultation process initiated in 2023 by the Supreme Court, which aroused keen interest among legal and business circles. The final version of the text now contains only 21 provisions, instead of the original 27, with the judges having decided to focus on the most serious cases, seeking a balance between the protection of employees and the liab
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Article authors
Éric Sautedé
Freelance