Members are invited to note that the Labour Disputes Mediation and Arbitration Law was adopted on 29 December, 2007 and would come into effect in Mainland China from 1 May, 2008. The Law outlines the system of mediation and arbitration to settle labour disputes and stipulates all cases of mediation and arbitration are processed free of charge. Full-text of the Law can be read at the following link: http://www.gov.cn/ziliao/flfg/2007-12/29/content_847310.htm

Highlights of the Law include:

1.  Mediation should proceed before arbitration. Provision 10 to 16 of the Law state that labour disputes should first go through mediation process. If meditation fails after 15 days, then the case shall proceed to arbitration.

2.  The arbitration committee is comprised of representatives from the local labour department, the workers’ union and enterprises and the total number of representatives shall be odd number. Labour dispute cases are settled through an arbitration court, chaired by three arbitrators. Less complicated cases can be settled by a single arbitrator.  

3.  Parties should provide evidence for their claims. If the evidence is maintained by the employer, the employer should provide the evidence and be responsible for any consequences resulting from its failure to meet this obligation.

4.  Applicant and defendant of the dispute can appoint agents to represent themselves in the arbitration.

5.  Arbitration request should be filed within one year of the outbreak of disputes, except in cases of payroll delay. Arbitration cases should be closed within 45 days and the result shall be final. Disputes over the result of arbitration can be brought to the people’s court within 15 days of the announcement of the result.

6.  Labour dispute arbitration is processed free of charge. Its expenses are disbursed from local budget.

Members shall also note that existing local regulations in Mainland may undergo further adjustment following the promulgation of the Law.