Towards a Functioning Framework for Individual Labour Law Rights: Challenges for China in a Changing World of Work

Abstract

This presentation considers progress towards establishment of a modern legislative framework for individual employment relations in China. A background of current labour market statistics and trends is provided, together with comment on perceived impacts for China of the global financial crisis since 2008. Recent enactments dealing with employment promotion, labour contracts, and labour dispute resolution are then considered. These are seen as a new phase in regulatory activity for the world of work since the foundation of the People's Republic in 1949. Particular challenges are identified in relation to effective delivery of employment rights, the administrative monitoring of enterprise compliance with labour regulations, and judicial efficiency in dealing with a rising volume of labour disputes throughout China. The influence of international standard-setting bodies upon the new enactments is noted, as are lessons drawn by the Chinese authorities from examination of experiences in other national systems. It is suggested that, without dramatic departure from the framework established by the 'umbrella' Labour Law of 1994, recent Chinese legislation reflects some sophisticated and innovative draughtsmanship, as well as sensitivity to the delicate balance between the economic interests of enterprises and the (generally protective) 'social dimension' of the world of work. Concern is expressed, however, as to whether China's available enforcement and sanctioning mechanisms will suffice to ensure that the new regulatory arrangements become effective in practice. Notably, there is a pressing need for capacity building in order to provide the administrative and judicial institutions necessary to ensure effective labour market regulation within a framework of rule of law. The need for a stable, well-regulated, yet flexible, labour market is seen as crucial to the continued success of the Chinese economy at a time of dramatic global flux. Cautious optimism is expressed as to the prospects of achieving those goals.