Chinese Labor and Employment Law
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CHINESE LABOR AND EMPLOYMENT LAW BY NATHAN JACKSON April 2011 This FAQ is an attempt to answer questions that a foreign layperson may ask about is often a politically charged issue in foreign countries and much misinformation is frequently deployed in political debates. In addition to providing an overview , this FAQ also attempts
to highlight relevant topics that may be unfamiliar to informed laypersons. The focus of this document is on law, but as the FAQ will show, there is often a large gap between law and actual
labor and employment laws.
influence the prices of goods and services around the globe, the locations in which companies and individuals choose to invest or move production, and the social stability of China. In November 2001, China became a fully admitted member of the World Trade Organization and in n in international trade. China has not only become a major export power, but also an attractive investment target for
world trade and investment continues to increase, its labor environment will likely attract more
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1980. At least 130 million of these are migrant workers who move from relatively poor rural areas to urban and industrial centers to work. Many of these migrant workers remit portions of their earnings back to family members in their hometown. Until recently, China has typically had an oversupply of unskilled labor and a shortage of skilled and professional workers. However, in the past several years, some companies in the major industrial hubs have begun to complain about labor shortages. As a result, many companies now raise wages 10 percent or more annually to retain workers, while others have closed their doors and moved to poorer inland areas or countries with cheaper labor. Interestingly, salaries for new university graduates have stagnated
university system. While university graduates start their careers with wages comparable to a factory worker, their salaries typically rise much more quickly than
CHINESE LABOR AND EMPLOYMENT LAW BY NATHAN JACKSON April 2011 This FAQ is an attempt to answer questions that a foreign layperson may ask about is often a politically charged issue in foreign countries and much misinformation is frequently deployed in political debates. In addition to providing an overview , this FAQ also attempts
to highlight relevant topics that may be unfamiliar to informed laypersons. The focus of this document is on law, but as the FAQ will show, there is often a large gap between law and actual
labor and employment laws.
influence the prices of goods and services around the globe, the locations in which companies and individuals choose to invest or move production, and the social stability of China. In November 2001, China became a fully admitted member of the World Trade Organization and in n in international trade. China has not only become a major export power, but also an attractive investment target for
world trade and investment continues to increase, its labor environment will likely attract more
?
2
1980. At least 130 million of these are migrant workers who move from relatively poor rural areas to urban and industrial centers to work. Many of these migrant workers remit portions of their earnings back to family members in their hometown. Until recently, China has typically had an oversupply of unskilled labor and a shortage of skilled and professional workers. However, in the past several years, some companies in the major industrial hubs have begun to complain about labor shortages. As a result, many companies now raise wages 10 percent or more annually to retain workers, while others have closed their doors and moved to poorer inland areas or countries with cheaper labor. Interestingly, salaries for new university graduates have stagnated
university system. While university graduates start their careers with wages comparable to a factory worker, their salaries typically rise much more quickly than