The Law on Mediation and Arbitration of Labor Disputes of
the People's Republic of China (Mediation and
Arbitration Law) was adopted on December 29, 2007 and
became effective as of May 1, 2008. The law has significantly
streamlined China's labor dispute mediation and arbitration
regime. This article will analyze these changes by comparing the
old and new systems.
I. Key Changes of the Mediation and Arbitration of Labor
Disputes
A. Single Arbitration Session for Certain Labor Disputes
Before the Mediation and Arbitration Law came into force, all
labor disputes are subject to "one mandatory arbitration and
two trials" procedure. This means that when a labor dispute
arose, the parties had to first try to settle the dispute at a
labor dispute arbitration commission, and either party disagreeing
with the arbitral award may file a lawsuit with a people's
court. The party which disagrees with the first trial decision may
appeal to the people's court of second instance.
