CRI听力：Labor Contract Law Will Protect Employees Rights

The State Council has just issued a regulation on the implementation of the Labor Contract Law. An official in charge of legal affairs from the State Council says the regulation will help to enhance the practicality of the law and clarify its meaning and uses for all concerned. CRI's Zheng Chenguang explains.

Reporter:

China's new labor contract law, which came into effect on January 1st this year, has been hailed as a cornerstone in the protection of employees' rights in China. (Www.hXen.com)

But many companies have also complained that the law has increased their operational costs as it overemphasizes the protection of workers.

One of the most debated terms was one that allowed employees of at least 10 years' standing to sign contracts without specific time limits.

Some employers believe the "no-fixed-term contract" will have a negative impact on them and lower overall company vitality.

Cao Taikang, director with the Legislative Affairs Office of the State Council, told a press conference on Friday that the new regulation has made clear that labor contracts with no fixed termination dates do not amount to lifetime contracts.

"To help everybody understand the labor contract law correctly, we have listed in the regulation a total of 27 conditions in which contracts with no fixed termination dates can be terminated either by an employer or employee. This tells people clearly that contracts with no fixed termination dates are not lifetime contracts. "

The regulation lists 14 conditions under which an employer can terminate a labor contract such as an employee's incompetence to live up to the job requirements, serious violations of regulations and dereliction of duty.

Another 13 circumstances were also included in the regulation, under which an employee could terminate his or her contract with an employer, including delayed pay and forced labor.

Cao Taikang also says the regulations have settled disputes regarding compensation issues for employees.

"The regulations rule that compensation should be given if employers terminate the contract lawfully. Employers should double the amount of compensation if they terminate a contract. No further financial compensation will be required."

Cao also says the regulations have made it clear that employers should only employ full-time workers so as to ensure there is a lawful contract for every worker.

The Labor Contract Law was passed in June last year, which was followed by a string of staff-sacking scandals.

Now China has started a nationwide inspection on implementation of the law, in a bid to make sure that employees' rights are well protected.

Zheng Chenguang, CRI news.