Implementation Regulations For The PRC Labour Contract Law

On 18 September 2008, the State Council promulgated the Implementation Regulations of the Labour Contract Law.

The Labour Contract Law was implemented on 1 January 2008.

The regulations clarify several provisions of the Labour Contract Law, but leave other areas unclear.

1. Execution of labour contract

Under the Labour Contract Law, if a written labour contract is not executed between a month and a year from the commencement of work, the employee is entitled to double salary payment. Article 5 of the regulations clarifies that the employer is not required to provide such compensation when the failure to conclude a contract is the employee's fault. But the employer must have notified the employee in writing. In this case, the employer may terminate the employment through written notice and only owes the employee their regular salary.