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2 months ago
Write a short note on workers' rights in China. What are the different aspects of the Labor Contract Law?
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Business and Its Environment
Edition: 7th
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2 months ago
Labor unions and human rights groups have been critical of working
conditions in China and other countries that produced for the developed world. Labor unions complained because China denied freedom of association, referring to the right to form a union that is independent of the government. NGOs and rights activists pressured firms in the United States and Europe to ensure that the factories that supply their brands meet certain minimal labor standards. These foreign firms have generally responded, having established codes and subjected factories to inspections.
The Labor Contract Law took effect in 2008 and provided for basic rights, although those rights are not as extensive as those found in Europe and the United States. The law was vigorously opposed by foreign corporations that argued that costs would rise substantially, making Chinese factories less competitive. The law went through three drafts and received 190,000 comments before being enacted.
The Labor Contract Law requires an employer to give a contract to a worker within 1 month of employment. The employer must also specify the nature of the job, working conditions, and compensation. Employees are also required to give 30 days' notice if they intend to terminate employment, and the circumstances under which a worker can be let go are limited to factors such as poor performance or theft, or changing circumstances, such as the loss of a supply contract or financial distress. Severance pay is due upon termination. Employers are required to consult with the worker or a worker's representative before terminating employment. Wages must be at least the minimum wage for the municipality where the place of employment is located. One effect of the law was to give individual workers the opportunity to stand up to their employers and take unresolved disputes to the courts.
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