Beijing lawyers dealing with employment conflicts are expecting more business thanks to the labor contract law taking effect a month ago.

 

"I am sure that the number of cases involving employment conflicts will increase with the new law," said Yang Hui, a Beijing-based lawyer concentrating on civil law suits.

 

The labor contract law improves protection of employees' rights and imposes more liabilities on employers, she said, "I believe that more employees are willing to solve their problems through the legal system as they will find more support from the law."

 

Compared with the Labor Law adopted in 1995, the new law introduces clearer and stricter regulations on labor contracts. For instance, the two laws both require an employer to sign a written contract with an employee but the latter writes in the timetable to develop a contract and the punishments for the offender.

 

"Several friends who work for civil courts and arbitration authorities also told me that the new law clarifies several issues and facilitates their work," Yang said.

 

But she added that in the first month not much difference has been found in the total number of cases.

 

The law made great progress in protecting the basic rights of employees but it did not do well at several issues that easily breed conflicts, said Gao Feng, an experienced lawyer on labor-management cases.

 

Many employees are confronted by their boss about relocation but the labor contract law did not give a satisfactory solution, he said, "It is hard to define whether an employer breaks the labor contract when he moves an employee to branch in another city against the latter's will."

 

"I expect some improvement of my business due to the new law but not very much," he said.

 

However, the 98-article law brings new business to attorneys like Gao who are familiar with employment laws -- Gao is hired by several state-owned enterprises to adjust their labor contracts and human resource management to the new law.

 

Some others are hired by those willing to legally steer clear of it.

 

The law brings new regulations such as entitling staff with more than 10 years of service at a company the right to sign contracts without specific time limits that would protect them from dismissal without cause.

 

The Guangdong-based Huawei Technologies Co. Ltd., China's telecom network equipment giant, hit the headline for its suspicious "voluntary resignation" scheme.

 

Huawei recently initiated a plan calling for its staff who had worked for eight consecutive years to hand in "voluntary resignations". Staff would have to compete for their posts, and sign new labor contracts with the firm once they were re-employed. Those who lost out would receive compensation. Observers suspected it of trying not to sign contracts without specific time limits with these employees.

 

Many companies complain that the result of new law will be rising costs, reduced labor flows and weaker enterprise vitality.

 

Gao does not agree with them. "As a lawyer, I think the law is set to protect some very fundamental rights of the employees. It just pushes the companies to adopt appropriate management," he said. "How can a company be responsible if it can't even sign written contracts with its employees?"

 

Chinese companies need to adapt themselves to the law and new situation. They shall turn from profiting from low-cost labors to sharpening competitiveness through the creativity of employees, said Professor Chang Kai, dean of the Research Institute of Labour Relations under the Beijing-based Renmin University.

 

"For them, this is a challenge. But if they face it and adapt themselves to it, the management of Chinese enterprises will reach a higher level," he said.

 

(Xinhua News Agency February 10, 2008)