Chapter I General Provisions

Article 1 This Law is enacted in order to resolve labor disputes in an impartial and timely manner, protect the lawful rights and interests of the parties and promote harmonious and stable labor relations.

Article 2 This Law is applicable to the following labor disputes arising between employing units and workers within the territory of the People's Republic of China:

(1) disputes arising from the confirmation of labor relations;

(2) disputes arising from the conclusion, performance, alteration, cancellation or termination of labor contracts;

(3) disputes arising from expulsion, charge, resignation or severance;

(4) disputes arising from working hours, the period of rest and vacation, social insurance, welfare benefits, training and occupational protection;

(5) disputes arising from labor remuneration, medical expenses for job-related injury, economic compensation or damages, etc.; and

(6) other labor disputes prescribed by laws and regulations.

Article 3 Labor disputes shall be resolved on the basis of facts and pursuant to the principles of lawfulness, impartiality and timeliness, with stress on mediation, in order to protect the lawful rights and interests of the parties according to law.

Article 4 When a labor dispute arises, the worker concerned may have a consultation with the employing unit or invite the trade union or a third party to join in the consultation with the employing unit, in order to reach a settlement agreement.

Article 5 Where a labor dispute arises and the parties are not willing to have a consultation, or the consultation fails, or the settlement agreement reached is not performed, they may apply to a mediation institution for mediation. Where the parties are not willing to have mediation, or the mediation fails, or the mediation agreement reached is not performed, they may apply to a labor-dispute arbitration commission for arbitration. Where they are dissatisfied with the arbitral award, they may initiate a litigation to a people's court, unless otherwise provided for in this Law.

Article 6 Where a labor dispute arises, the parties have the responsibility to give evidence for their own claims. Where the evidence relevant to the matter under dispute is kept and controlled by the employing unit, the said unit shall provide such evidence. Where the employing unit refuses to do so, it shall bear any unfavorable consequences.

Article 7 Where the party in a labor dispute consists of 10 workers or more, and they have a common request, they may choose one worker to represent them in mediation, arbitration or litigation.

Article 8 The administrative departments of labor of the people's governments at or above the county level shall, in conjunction with the trade unions and representatives of enterprises, establish a tripartite coordination mechanism for labor relations to jointly study and resolve the major issues of labor disputes.

Article 9 Where an employing unit, in violation of State regulations, defaults in the payment of labor remuneration or fails to pay the same in full, or defaults in the payment of medical expenses for job-related injury, economic compensation or damages, the worker concerned may make a complaint to the administrative department of labor, which shall handle the complaint in accordance with law.