Reversing the Labour Contract Law?

Never properly enforced, China’s Labour Contract Law of 2008 nevertheless provides a favorable legal framework for workers – a nuisance in the eyes of the corporate sector from the beginning – but this is about to change. Labour market inflexibility and high labour costs are cited as key problems resulting from the eight-year law, according to the China’s Finance Minister. The Minister’s comment seem to aim specifically at watering down social insurance, severance pay and restriction on casualisation. This goes against the tide of more legal protection of workers over the last decade. The Guangdong government is more direct – it insists on reducing businesses’ burden by freezing minimum wage adjustment for the next two years.

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