AsianLII [Home] [Databases] [WorldLII] [Search] [Feedback]

Laws of the People's Republic of China

You are here:  AsianLII >> Databases >> Laws of the People's Republic of China >> REGULATIONS ON SETTLEMENT OF LABOUR DISPUTES IN ENTERPRISES

[Database Search] [Name Search] [Noteup] [Help]


REGULATIONS ON SETTLEMENT OF LABOUR DISPUTES IN ENTERPRISES

Category  LABOUR ADMINISTRATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1993-07-06 Effective Date  1993-08-01  

Regulations of the People's Republic of China on Settlement of Labour Disputes in Enterprises



Chapter I  General Provisions
Chapter II  Mediation in Enterprises
Chapter III  Arbitration
Chapter IV  Rules of Punishment
Chapter V  Supplementary Provisions

(Adopted by the State Council at the 5th

Executive Meeting on June 11, 1993 and promulgated
by Decree No.117 of the State Council of the
People's Republic of China on July 6, 1993 and
effective as of August 1, 1993)
Chapter I  General Provisions

    Article 1  The present Regulations are formulated
to properly handle labour disputes in enterprises,
protect the legitimate rights and interests of the
enterprise and the workers and employees, maintain
the order of normal production and management,
develop sound labour relations, and promote the
smooth progress of the reform and the implementation
of the open policy.

    Article 2  The Regulations are applicable to the
following labour disputes between the enterprise and
the workers and employees within the territory of
the People's Republic of China:

    (1) Disputes arising out of dismissal, discharge
or lay-off of workers and employees by enterprises,
or resignation by workers and employees or leaving
their jobs of their own volition;

    (2) Disputes concerning implementation of
relevant State regulations on wages, insurance,
welfare, training and labour protection;

    (3) Disputes regarding execution of the labour
contract;

    (4) Disputes that other laws and regulations
stipulate should be handled with reference to these
Regulations.

    Article 3  The enterprise and the worker(s) and
employee(s) involved shall be the parties to a case
of labour dispute.

    Article 4  Settlement of labour disputes shall
observe the following principles:

    (1) Emphasis is given to mediation and prompt
handling;

    (2) Labour disputes shall be dealt with in
accordance with law on a fact-finding basis;

    (3) The parties involved are equal before
applicable laws.

    Article 5  When there are more than three
workers and employees in a labour dispute with the same grievances as
one of the parties, the workers and employees
involved shall nominate their representative to
participate in the work of mediation and arbitration.

    Article 6  In case of a labour dispute, the
parties shall first find solution through
negotiations. If the parties are unwilling to go for
negotiations or negotiations fail, the case may be
referred to the labour dispute mediation committee of the
enterprise in which the dispute has occurred; if
mediation fails , the case may be referred to the
labour dispute arbitration committee for
arbitration. The parties may also petition directly
to the labour dispute arbitration committee for
arbitration. When one of the parties or both parties
refuse to accept the arbitration award, he or they
may bring a lawsuit before the people's court.

    In the course of handling a labour dispute,
neither party shall take any action that may aggravate the dispute.
Chapter II  Mediation in Enterprises

    Article 7  An enterprise may set up a labour
dispute mediatian committee (hereinafter referred to
as mediation committee) to be responsible for
mediation of labour disputes within the enterprise.
The mediation committee shall be composed of the
following persons:

    (1) Representative(s) of workers and employee(s);

    (2) Representative(s) of the enterprise;

    (3) Representative(s) of the enterprise trade
union.

    The workers' and employees' representative(s) shall be
nominated by the congress of workers' and employees'
representatives or the workers' and employees' congress, the
enterprise representative(s) appointed by the
enterprise director or manager, and the enterprise
trade union representative(s) appointed by the
enterprise trade union committee.

    The number of members to the mediation committee
shall be determined through negotiations between
workers' and employees' congress and the enterprise director or
manager, at the proposal of the former. The number
of enterprise representative(s) shall not exceed one
third of the total.

    Article 8  The post of chairman of the mediation
committee shall be taken up by a representative of
the enterprise trade union.

    The mediation committee shall set up its office
at the enterprise trade union committee.

    Article 9  In an enterprise without any trade
union organization, the establishment and
composition of the mediation committee shall be
determined through negotiations between the workers' and employees'
representatives and the enterprise representatives.

    Article 10  Disputes taken up by the mediation
committee shall wind up within 30 days starting from
the date of application by the parties; otherwise,
mediation shall be considered unsuccessful.

    Article 11  The mediation committee shall
observe the principle of voluntariness for both parties
during mediation. Agreement reached through
mediation shall be written in a mediation note for
conscious execution by the two parties; if mediation
fails, the case may be referred to the labour
dispute arbitration committee by the parties for arbitration within a set time
limit.
Chapter III  Arbitration

    Article 12  Counties, cities and city districts
shall set up labour dispute arbitration committees
(hereinafter referred to as arbitration committees).

    Article 13  The arbitration committee shall be
composed of the following persons:

    (1) Representatives of the department in charge
of labour administration;

    (2) Representatives of the trade union council;

    (3) Representatives of the department of overall
economic administration appointed by the government.

    The members to the arbitration committee must be
in odd numbers, and the post of chairman is to be
taken up by an official in charge of the department
of labour administration.

    The office of the arbitration committee shall be
located at the labour dispute settlement section of the
department of labour administration, and be responsible
for dealing with its day-to-day routine.

    The arbitration committee shall follow the
principle of decision by a majority vote.

    Article 14  The system of arbitrators and
arbitration tribunals shall be adopted by the
arbitration committee in the settlement of labour
disputes.

    Article 15  The arbitration committee may engage
personnel from the department in charge of labour
administration or from other relevant government
departments, trade union officials, experts,
scholars, and lawyers as full-time or part-time
arbitrators.

    Part-time and full-time arbitrators shall enjoy
equal rights in discharging their duties of
arbitration.

    In executing their duties of arbitration,
part-time arbitrators shall receive the support of
their own work units.

    Article 16  In handling a labour dispute, the
arbitration committee shall form an arbitration
tribunal which shall be composed of three
arbitrators.

    A simple labour dispute may be handled by a
single arbitrator appointed by the arbitration
committee.

    The arbitration tribunal may submit major or
complicated labour dispute cases to the arbitration
committee for deliberation and decision. The
arbitration tribunal must implement the decisions of
the arbitration committee.

    Article 17  The arbitration committees set up in
counties, cities and city districts shall be in
charge of handling labour disputes in their
respective administrative areas.

    The scope of jurisdiction of the arbitration
committees in cities with districts and in such
districts in handling labour disputes shall be
decided by the people's governments of the provinces
and autonomous regions.

    Article 18  When the enterprise and the
worker(s) or employee(s) involved in a dispute are not located in
areas under the jurisdiction of the same arbitration
committee, the dispute shall be handled by the
arbitration committee located at the place where the
worker(s) or employee(s) in question has wage relations.

    Article 19  Any party may mandate one to two
lawyers or other agents to act for him in
arbitration. The party that mandates others to act
for him in arbitration shall submit to the
arbitration committee a Power of Attorney bearing
his signature or seal. The Power of Attorney shall
specify clearly the terms and powers of the mandate.

    Article 20  A worker with limited capacity to
take part in civil cases or without such capacity,
or a deceased worker, may be represented in
arbitration proceedings by his legal representative.
The arbitration committee may appoint an agent for a
worker without a legal representative.

    Article 21  The two parties in dispute may reach
a compromise on their own.

    Article 22  A third party whose personal
interest will be affected by the outcome of the settlement of a labour
dispute may file a petition to participate in the
proceedings or may participate when so notified by
the arbitration committee.

    Article 23  A party to a labour dispute should
petition for arbitration to the arbitration
committee in writing within 6 months from the date
when he knows or should know that his rights have
been infringed upon.

    The arbitration committee shall accept a
petition when a party fails to observe the time
limit stipulated in the aforesaid clause due to
force majeure or other justifiable reasons.

    Article 24  When a party petitions for
arbitration to the arbitration committee, the
petition shall be submitted to the arbitration
committee, and copies of the petition shall also be
submitted in accordance with the number of
respondents. The petition shall specify the
following:

    (1) the name, occupation, address and work unit
of a worker or employee who is a party to the case, or, if the
party is an enterprise, its name, address and legal
representative's name and position;

    (2) the claim of arbitration and the facts and
grounds on which it is based; and

    (3) any evidence as well as the names and
addresses of witnesses.

    Article 25  Within seven days from the date of
receipt of a petition, the arbitration committee
shall decide whether to accept it or not. If the
decision is in the affirmative, the arbitration
committee shall send a copy of the petition to the
respondent and form an arbitration tribunal. If it
is in the negative, the committee shall make the
reasons clear.

    The respondent shall within 15 days on
receipt of the copy of the petition file a bill of
defence with related evidence. Delay or failure by
the respondent to file a bill of defence shall not
prevent the case from being heard by the committee.

    The arbitration committee shall have the
authority to request the parties to provide or
supplement their evidence.

    Article 26  The arbitration tribunal shall
notify the parties in dispute four days in advance
and in writing the start of its time and place of
hearing. If a party has received the notice in
writing but refuses to appear at the hearing without
justifiable reasons or walks out in the course of
deliberations without permission of the arbitration
tribunal, and if he is the claimant, the arbitration
tribunal may decide that the case is withdrawn; and
if it is the respondent, the arbitration tribunal
may make an award by default.

    Article 27  In handling labour disputes, the tribunal
shall firstly mediate and try to bring the two
parties involved together to reach an agreement on
their own on a fact-finding basis. The contents of
the agreement shall not contradict existing laws and
regulations.

    Article 28  In case an agreement is reached
through mediation, the arbitration tribunal shall
produce a mediation note in accordance with the
contents of the agreement. The note is legally
binding as from the date of receipt by the parties.

    If no agreement is reached through mediation or
if one party retracts before the note is delivered,
the arbitration tribunal shall proceed promptly with
a ruling.

    Acticle 29  The arbitration tribunal shall hand
out its rulings over labour disputes under the principle of the minority
of its members submitting to the majority. Differing
views shall be placed on record.

    After the tribunal has made a ruling, an
arbitration award shall be produced and sent to the
parties in dispute.

    Article 30  If a party refuses to accept the
arbitration award, he may bring a lawsuit before the
people's court within 15 days from receiving the
arbitration award. Otherwise, the arbitration award
shall come into force legally.

    Article 31  The legally effective mediation note
and arbitration award shall be implemented within
the set time limit by both parties. In case one
party fails to implement the note or the award upon
expiration of the time limit, the other party may
petition with the people's court for enforcement of
the note or the award.

    Article 32  All labour disputes handled by an
arbitration tribunal shall be concluded within 60
days from the date of its setting up. If a case is
complicated requiring an extension of its mandate,
it shall be submitted to the arbitration committee
for approval, and the extension shall not exceed 30
days.

    Acticle 33  In the course of handling a labour
dispute, the arbitration committee has the authority
to consult files, documents and other evidences
pertaining to the case from the units concerned, and
also to investigate insiders. Such units and persons
shall not refuse.

    The arbitration committees may entrust each
other with the work of investigation.

    If in investigating labour disputes certain
information involves secrets or personal privacy, the
arbitration committee and its personnel shall keep
them confidential.

    Article 34  When a party involved in a labour
dispute applies for arbitration, he shall pay
arbitration fees according to the relevant rules set
by the State.

    Arbitration fees include an acceptance fee and a
fee for dealing with the case. The rates and
procedures for charging arbitration fees shall be
determined by the department in charge of labour
administration under the State Council jointly with
the departments in charge of finance administration
and commodity prices administration under the State
Council.

    Article 35  Any member of the arbitration
committee and any arbitrator shall himself request
withdrawal from his office, and the parties to the
dispute also have the right to request, orally or in
writing, that he be withdrawn from his office, in
any one of the following circumstances:

    (1) if he is one of the parties, or a close
relative of a party to the dispute;

    (2) if he has a personal stake in the labour
dispute; or

    (3) if he has some other relations with a party
to the labour dispute that might affect the
impartial handling of the case.

    Article 36  The arbitration committee shall make
a prompt decision on a request of withdrawal, and
notify the parties orally or in writing.
Chapter IV  Rules of Punishment

    Article 37  If in the course of handling a
labour dispute a party or any related person commits
any of the following acts, the arbitration committee
may criticize and admonish him, or order him to
correct his mistakes; if the case is serious, he
shall be punished according to relevant provisions
of the Regulations of the People's Republic of China
on Administrative Penalties for Public Security; in
case of a crime, he shall be dealt with for his
criminal liabilities according to law:

    (1) if he interferes with mediation and
arbitration, and hinders the arbitration personnel
from performing their duties;

    (2) if he provides false information;

    (3) if he refuses to provide relevant documents,
materials and other evidences; or

    (4) if he retaliates against the arbitration
personnel, assistants, witnesses or assistant
executive personnel.

    Article 38  If any of the arbitration personnel
in the course of handling a labour dispute bends the
law for his own benefit, takes bribes, abuses his
powers, or reveals secrets and private affairs of
individuals, he shall be dealt disciplinary sanction
by his work unit or its superior organ; if he is an
arbitrator, he shall be discharged by the
arbitration committee; in case of a crime, he shall
be dealt with for his criminal liabilities according
to law.
Chapter V  Supplementary Provisions

    Article 39  Labour disputes between state
organs, institutions and social organizations and
their workers, or disputes between individual
businesses of industry and commerce and their assistants or apprentices shall
be handled with reference to the present Regulations.

    Article 40  The Rules of Organization and the
Procedure Rules of the arbitration committee shall
be formulated by the department in charge of labour
administration under the State Council jointly with
relevant departments.

    Article 41  The people's governments of the
provinces, autonomous regions and municipalities directly under the Central
Government may formulate their own measures of application in
accordance with the present Regulations.

    Article 42  The department in charge of labour
administration under the State Council shall be
responsible for the interpretation of the
Regulations.

    Article 43  The present Regulations shall come
into force from August 1, 1993. The Provisional
Regulations on Settlement of Labour Disputes in
State-owned Enterprises promulgated by the State
Council on July 31, 1987 shall be simultaneously
superseded.



AsianLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback
URL: http://www.asianlii.org/cn/legis/cen/laws/rosoldie625