Answer: Employment relations in China are regulated by the 1995 Labor Law and the 2012 Employment Contract Law. The application of employment law in China, like other sciences, follows specific sub-principles derived from general principles, which, in turn, are based on the fundamental principles of Chinese employment law.

Article 1 of the Employment Contract Law stipulates that the fundamental purpose of formulating the law is to protect the legitimate rights and interests of employees and to build and develop harmonious and stable employment relations.¹Article 1 of the Labor Law also stipulates the principle of protecting the legitimate rights and interests of workers.For example, in the case of Li Zhong of Guangdong Provincial High Court¡¯s Shenzhen Alfat Electrical and Mechanical Co., Ltd. in 2009, the court found that the employer’s illegal dismissal prevented the employee from receiving RMB one million of annual salaries and purchasing a property, and that since the damages of breach of contract was difficult to determine, the employer was obligated to bear the high liquidated damages stipulated in the contract, in accordance with the principle of protecting the legitimate rights and interests of employees.²Employment dispute retrial between Li Zhong and Shenzhen Alpha Mechanical and Electrical Industry Co., Ltd. Civil Judgment of Guangdong Provincial People’s High Court (2009) Yue Gao Fa Shen Jian Min Ti Zi No.131. ¡°Because of the manifest disparity between both sides, the court should highlight the principle of protecting or inclining to protect the legitimate rights and interests of workers, so as to achieve substantive fairness.¡±

In addition, according to the principle of harmonious employment relations in the Employment Contract Law, both employers and employees should treat each other in good faith and in a fair and reasonable manner.³Civil Ruling of the Supreme People’s Court of the People’s Republic of China (2014) Min Shen Zi No.735, Hu Song v. Beijing Nonggongshang Development and Trading Co., Ltd. The court held that the employee and the employer had reached a mediation agreement, but the employee¡¯ repenting after receiving the compensation violated the principle of good faith. The court rejected the employee¡¯s claim.

For the employers, employees are the foundation of the company’s successful operation and the team members of the company’s harmonious and friendly work environment. The employers should treat employees in good faith, understand the needs of employees, and strictly protect the rights of employees stipulated by law.

For employees, the employer they serves is part of the core elements of the economic prosperity and development of the society and the source of their income and career development places. Employees should abide by the company rules, especially abide by professional ethics, and protect the interests of the employer.

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Mr. Wangdong

Mr. Dong Wang has been in practice for over 20 years, specializing in business law, including employment law, commercial law, company law, and intellectual property law. Mr. Wang has earned respect and trust from his clients due to his professionalism, fidielty, and kindness.

Email: wangdong@royalaw.com

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  Article 1 of the Labor Law also stipulates the principle of protecting the legitimate rights and interests of workers.
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  Employment dispute retrial between Li Zhong and Shenzhen Alpha Mechanical and Electrical Industry Co., Ltd. Civil Judgment of Guangdong Provincial People’s High Court (2009) Yue Gao Fa Shen Jian Min Ti Zi No.131. ¡°Because of the manifest disparity between both sides, the court should highlight the principle of protecting or inclining to protect the legitimate rights and interests of workers, so as to achieve substantive fairness.¡±
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  Civil Ruling of the Supreme People’s Court of the People’s Republic of China (2014) Min Shen Zi No.735, Hu Song v. Beijing Nonggongshang Development and Trading Co., Ltd. The court held that the employee and the employer had reached a mediation agreement, but the employee¡¯ repenting after receiving the compensation violated the principle of good faith. The court rejected the employee¡¯s claim.