Draft labor law undergoes revision

While low labor costs continue to fuel China's economic growth, Beijing has expressed its willingness to ensure the rights of the country's workers by proposing a new comprehensive labor law which is currently under revision by the Standing Committee of the National People's Congress (NPC).

The labor law was first proposed in 2005 following reports that companies widely violated workers' rights. Critics said implementing it would hurt the economy.

On Thursday, the third plenary meeting of the 28th session of the NPC convened over enacting the new law. The draft has undergone 18 months of deliberation and the fourth and final version is expected to be approved this week.

In April 2006, the government asked the public to comment on the first draft of the law and received more than 190,000 responses.

The proposed law includes the most significant changes in labor rules in more than a decade. It will set standards for labor contracts, use of temporary workers and severance pay.

Foreign companies have voiced concern over the proposed restrictions on discharging employees, the use of temporary workers and on giving the All-China Federation of Trade Unions a stronger say in staffing decisions.

On Friday, the NPC approved an amendment which calls for punitive measures to be taken in cases of dereliction of duty by government officials. The recent scandal involving the use of forced labor in brick factories in Shanxi contributed to making the revisions, which also included adding provisions aiming to prevent such abuses to the labor contract law.

The Law Committee of the NPC has suggested that the draft be put to a vote and enacted as soon as possible.