New labour law adopted in China

CHINA: A new Labour Contract Law was approved by the Standing Committee of the National People's Congress in China on June 29 to take effect in 2008. The law strengthens protection of workers' rights and may particularly benefit the millions of migrant workers in China who currently endure endemic violations of their rights. The Labour Contract Law confirms that all individual workers have the right to a written employment contract that complies with minimum wage and safety regulations, requires redundancy payments upon termination for many workers and places limits on the use of temporary employment, making it more difficult to terminate contracts. The new law also provides for workers' representatives to negotiate collective contracts at the workplace through the All-China Federation of Trade Unions (ACFTU), which is controlled by the ruling Chinese Communist Party. According to the law, if the ACFTU has not established a branch at an enterprise, the workers may elect their own representative to negotiate a collective contract with management, but only under the guidance of the ACFTU. "While we welcome the new labour law in China, without proper implementation and rigorous enforcement it may not result in real improvements for workers. Furthermore, without the right to independent trade unions, workers have limited means to ensure their rights are respected," said Marcello Malentacchi.