Order of the State Council on Promulgating the Regulations of the People's Republic of China on Settlement of Labor Disputes in Enterprises

Order of the State Council on Promulgating the Regulations of the People's Republic of China on Settlement of Labor Disputes in Enterprises

Order of State Council [1993] No. 117

July 6, 1993

The Regulations of the People's Republic of China on Settlement of Labor Disputes in Enterprises, which were adopted at the fifth executive meeting of the State Council on June 11, 1993, are hereby promulgated and shall come into force on August 1, 1993.

Appendix: Regulations of the People's Republic of China on Settlement of Labor Disputes in Enterprises

Chapter I General Regulations
　
Article 1 These Regulations are formulated to properly handle labor 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 labor relations, and promote the smooth progress of the reform and the implementation of the open policy.
　
Article 2 These Regulations are applicable to the following labor 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 policies on wages, insurance, welfare, training and labor protection;
3. Disputes arising from execution of the labor contracts; and
4. Disputes that other laws and regulations stipulate shall 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 labor dispute.
　
Article 4 Settlement of labor disputes shall comply with the following principles:
1. Emphasis shall be placed on mediation and prompt handling;
2. Labor disputes shall be dealt with in accordance with the law on a fact-finding basis; and
3. The parties involved are equal before applicable laws.
　
Article 5 When there are three or more workers and employees 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 or arbitration.
　
Article 6 In case of a labor 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 mediation committee of the enterprise in which the dispute has occurred; if mediation fails, the case may be referred to the labor dispute arbitration committee for arbitration. The parties may also apply directly to the labor 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 labor dispute, neither party may aggravate the dispute.

Chapter II Enterprise Mediation
　
Article 7 An enterprise may set up a labor dispute mediation committee (hereinafter referred to as mediation committee) to be responsible for mediation of labor disputes within the enterprise. The mediation committee shall be composed of the following persons:
1. Representative(s) of workers and employees;
2. Representative(s) of the enterprise; and
3. Representative(s) of the enterprise trade union.
The workers' representatives shall be nominated by the congress of workers' representatives (or the workers' congress, hereinafter the same); the enterprise representatives shall be appointed by the enterprise director or manager, and the enterprise trade union representatives shall be appointed by the enterprise trade union committee.
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