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China Insight - Employment & Pensions

New Rules on Democratic Organization in Chinese Enterprises

01/07/2012

The PRC Labor Contract Law, effective since 1 January 2008, requires an enterprise to follow democratic procedures whenever it formulates or amends any rules or makes any important decisions that are directly related to the interests of the employees. It stipulates that the enterprise shall discuss the above rules and decisions with the employees, negotiate with the labor union or the employees' representatives on an equal basis. However, the law did not provide in details about the organization which can represents all employees to execute their legal rights in an enterprise.

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China Insight - Employment & Pensions
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Authors

Jeanette Yu
Jeanette Yu
Partner
Shanghai