Chapter III Arbitration

Section 1 General Stipulations

Article 17 Labor-dispute arbitration commissions shall be set up pursuant to the principles of overall planning, rational geographical distribution and meeting actual needs. The people's governments of provinces and autonomous regions may decide to set up such commissions in cities and counties; and the people's governments of municipalities directly under the Central Government may decide to set up such commissions in districts and counties; in municipalities directly under the Central Government and cities divided into districts, one or more labor-dispute arbitration commissions may also be established. Labor-dispute arbitration commissions shall not be set up level by level according to administrative divisions.

Article 18 The administrative department of labor under the State Council shall formulate arbitration rules in accordance with the relevant provisions of this Law. The administrative departments of labor of the people's governments of provinces, autonomous regions and municipalities directly under the Central Government shall provide guidance in labor-dispute arbitration within their own administrative areas.

Article 19 A labor-dispute arbitration commissions shall be composed of representatives of the administrative department of labor, the trade unions and the enterprises. The number of the component members of such commission shall be an odd number.

Labor dispute arbitration commissions shall perform the following duties in accordance with law:

(1) appointing and dismissing full-time or part-time arbitrators;

(2) accepting and handling labor-dispute cases;

(3) discussing major or complicated labor-dispute cases; and

(4) exercising supervision over arbitration.

Labor-dispute arbitration commissions shall set up offices for handling their day-to-day work.

Article 20 A labor dispute arbitration commission shall have a roster of arbitrators.

An arbitrator shall be fair-minded and upright, and meet one of the following requirements:

(1) having served as a judge;

(2) being engaged in legal research or teaching with a professional title at the intermediary level or above;

(3) possessing legal knowledge and having been engaged in human resources management, trade union work or other professional work for five full years; or

(4) being a lawyer, having been in legal practice for three full years.

Article 21 A labor-dispute arbitration commission shall be responsible for arbitrating labor disputes arising in the district under its jurisdiction.

A labor dispute shall be under the jurisdiction of the labor-dispute arbitration commission at the place where the labor contract concerned is performed or where the employing unit is located. Where one of the two parties applies for arbitration to the labor-dispute arbitration commission at the place where the labor contract is performed and the other does so at the place where the employing unit is located, the labor dispute shall be subject to the jurisdiction of the former.

Article 22 The worker and the employing unit, between whom a labor dispute arises, constitute the two parties to the labor dispute case for arbitration.

Where a labor dispute arises between a labor dispatching unit or an employing unit on the one hand and a worker on the other, the labor dispatching unit and the employing unit constitute a joint party.

Article 23 The third party that has an interest in the result of a labor dispute case to be handled may apply for participating in arbitration or be notified to do so by the labor-dispute arbitration commission.

Article 24 The parties may appoint agents to participate in arbitration. To appoint an agent to participate in arbitration, a letter of attorney signed or sealed by the appointing party shall be submitted to the labor-dispute arbitration commission, in which shall clearly be stated the entrusted matters and the limit of authority.

Article 25 A worker who fully or partially losses the capability of civil conduct shall have his statutory agent participate in arbitration. Where such an agent is lacking, an agent shall be designated for him by the labor-dispute arbitration commission. Where the worker is dead, his close relative or agent shall participate in arbitration.

Article 26 The arbitration of labor disputes shall be conducted openly, unless where the parties agree otherwise, or where State secrets, commercial secrets or personal affairs are involved.