New Chinese Labour Arbitration Law

With the increased number and complexity of labour disputes arising in China, the current regulations for dispute resolution have been considered unsuitable. In an attempt to remedy the situation The PRC Labour Disputes Mediation and Arbitration Law (the "Law") was adopted by the Standing Committee of the National People's Congress on 29 December 2007. The Law will come into force on 1 May 2008 and covers the following issues.

1. Pre-Requisite Arbitration And Voluntary Mediation
   

   The Law places an emphasis on the use of voluntary mediation, in order to manage the increased number of labour disputes. It is worth noting that if an employer fails to perform its obligations provided for in a mediation agreement, the employee concerned may seek direct recourse to the competent People's Court for the issue of a payment order.