Thirteen years ago, the Labor Law of the People’s Republic of China (“Labor Law”) was released, which is a fundamental law to govern employment relationships between employers and employees in China. The Labor Law has indeed played a very important role in such sector in the past 13 years. However, with the development of the Chinese economy and society, more and more labor issues, which may not be completely or well dealt with under the current Labor Law, have occurred. As a result, a few years ago, the legislative department started to create a new labor law to cope with this situation. After a few rounds of review and revision, the Labor Contract Law of the People’s Republic of China (“Labor Contract Law”) was eventually promulgated by the 28th Session of the Standing Committee of the 10th National People’s Congress on June 29, 2007 and took effect as of January 1, 2008. The following is a summary to facilitate your understanding of the Labor Contract Law.

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