[Excerpt] This is a remarkable time for labor and employment law in China. The Employment Contract Law, which became effective on January 1, 2008, significantly changed the relationship between employer and employee to bring China more in line with international standards.
Further, the All-China Federation of Trade Unions, the umbrella organization for all labor unions in China, has promised to continue its campaign to unionize foreign-invested enterprises. Its stated goal is next to pressure companies to sign collective contracts, including collective wage agreements, with their labor unions.
As a result of these developments, employers must develop better methods to manage their workforce and labor costs. Companies must be aware of the key legal challenges in China. Failure to do so can lead to significant financial, legal, and reputational risks. We hope that this Employment Law Guide will help you to navigate successfully the challenges ahead.