December 3, 2007Client Alert

The New PRC Employment Contract Law

On June 29, 2007, after more than two years of drafting/deliberation and an unprecedented amount of public comment, the Standing Committee of the National People’s Congress (the national legislative of PRC) issued the PRC Employment Contract Law (the ECL).

The ECL has been a source of considerable controversy and attention because of its effect on all employment relationships in the PRC and the increased protection it aims to provide employees.

Key Changes of the Employment Contract Law

  • Formulation of Employer’s Rules
  • Empowerment of the Trade Unions
  • Employer’s Obligation to Disclose and Rights to Disclosure
  • Written Employment Contract Requirement
  • Open-Term Contracts Favored
  • Probationary Period
  • Training Expenses and Service Period
  • Non-Compete
  • Liquidated Damages
  • Bases for Employer to Terminate An Employment Contract without Prior Notice
  • Grounds for Employee to Terminate An Employment Contract without Prior Notice
  • Mass Layoffs
  • Protected Categories of Employees
  • Severance Pay
  • Penalty for Unlawful Termination
  • Secondment
  • Part-Time Employees

Learn more about these changes.

If you have specific questions about how this affects your business, please contact Edward R. Lawson at 414.225.2762, or, or Scott C. Beightol at 414.225.4994, or

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