China Labor Law ñ Implementation Rules

By Frank Mulligan ñ Accetis International, Talent Software & Recruit China

As part of the normal legislative cycle, the Chinese government is drafting regulations governing the implementation of the new Labor Law.

For many people overseas the appearance of new regulations does not make much sense because it sounds like there are new laws coming that would supersede, or come into conflict with, the recently promulgated law. Fortunately, that is not the case.

This really is a clarification process and it always happens this way. The background is that when the Chinese government issues a new law it is often the first to cover its remit. So it can be very short and sweet - as short as 20-40 pages.

So there is a whole lot left on the table.

Interpreting The New
Lawyers and solicitors from a common law country would point to hundreds and thousands of cases and decisions on a given subject, and they would be forced to know the most significant cases in order to graduate. Code law practitioners in other countries would point to equally large numbers of written laws, rules and regulations.

Chinaís legal scholars, on the other hand, have it both easier and harder because there is less to know, and therefore less to act as a guide. Interpretation is key. This allows non-legal personnel to get involved in the process because there is thought to be little need to understand complex legal issues. This involvement is not necessarily a good thing, as a little knowledge is a dangerous thing, and it should be said that it is more of a problem for small companies. MNCs have legal departments that lead the process in this regard.

Chinese laws need implementation rules because the execution of a new law uncovers issues that had never even been considered in that law. In addition to these purely legal issues there is also the issue of the effect on the economy; the response of relevant individuals; and the relationship between different groups, such as ministries, unions, companies and citizens. Laws can overshoot their original intent and a pullback is achieved with the Implementation Rules.

So either the government listens to businessís complaints that the law has added to their cost base, and to the risk of doing business in China. Or they listen to workers who generally welcome the new law. Balancing the two parties will deliver a set of regulations that keeps vociferous complainers happy but does nothing to alienate the silent majority.

Donít expect much change but if you donít like the current law - complain.

Email frank.mulligan@recruit-china.com
Frank Mulliganís blog ñ english.talent-software.com