NPC spokesman defends new labor law

Regulatory

5 March 2008

China's National People's Congress spokesman has defended the new labor contract law despite growing calls for revisions, the South China Morning Post reported. Jiang Enzhu said the law was introduced after thorough consultation and studies. He also accused some businesses of "dodging the rule" through collective firings, arguing that these firms had misinterpreted parts of the law. The law was intended to build long-term relations between employers and employees. One of its most controversial provisions allows those employed for over 10 years at a company to ask for an open-ended employment contract. Jiang denied that this provision is the equivalent of an "iron rice bowl" or life-long contract. The law came into effect on January 1.

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