Maintaining A Flexible Workforce In China – Is It Possible?

It is no great secret that China's Labour Laws are "employee friendly".  At the present time, labour laws are very much drafted with a view to protecting the employee rather than promoting flexibility in the labour market.  The influence of unions, security of employment for certain categories of employees and limited rights for employers to terminate employees are all features of the current system.  In addition, many commentators note that the labour tribunal is pro-employee which makes any dismissal of employees, whether for cause or for restructuring purposes, difficult without having to pay compensation.  This is turn can make it difficult for businesses operating in China to achieve efficiencies.