A draft of The Labor Contract Law of the People’s Republic of China was passed by the State Council in October 2005 and is scheduled for the second reading by the Standing Committee of the National People’s Congress. It could become law in the second half of this year. The Law, if enacted in the current form, likely will cause employers, including foreign-invested enterprises, to review and restructure their labor contracts and human resources policies. The most significant aspects of the Draft are discussed here.
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