China's legislature approves new labor law
(AP)Updated: 2007-06-29 22:09
China enacted a labor law Friday meant to improve workers' rights amid complaints about unpaid wages and other abuses, and an official tried to assure wary foreign investors they will not be hurt by the new standards.
The law is the most significant change in Chinese labor law in more than a decade. Its approval followed 18 months of deliberation, public debate and complaints by activists that foreign business groups were trying to erode workers' rights. It takes effect January 1.
The legislation sets standards for labor contracts, use of temporary workers, layoffs and other employment conditions in a rapidly changing economy, according to a report issued by the legislature. The text of the law was not immediately released.
"The law is meant to protect workers and their rights," Xin Chunying, deputy chairwoman of the legislature's law committee, said at a news conference.
Foreign business groups had expressed alarm at an early version of the law that sharply limited use of temporary workers and required approval from China's state-sanctioned unions for layoffs or firing individual workers. Companies argued that overly restrictive rules could raise the cost of business.
The report Friday made no reference to union approval of layoffs, saying only that a company must inform its union of planned reductions and listen to its opinion.
But the law retains provisions limiting probationary
periods and requiring severance pay for more types of workers, according to the
report issued by the NPC.
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