Source: CCTV.com
03-10-2008 11:28
Special Report: 2008 NPC & CPPCC sessionsThe vice-minister of Labor and Social Security says the new labor contract law has met resistance from reluctant employers, due to legal misinterpretations.
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| Sun Baoshu, Vice-Minister of Labor and Social Security. (CCTV.com) |
Sun Baoshu defended the law against claims that it would weaken business vitality and raise costs for employers.
The law came into effect on January 1st. It requires firms to give open-ended contracts to staff who have worked for 10 years or completed two fixed-term contracts.
It also mandates higher company contributions to pension and insurance funds.
Sun Baoshu, Vice-Minister of Labor and Social Security, said, "The new Labor Contract Law has been enacted for less than three months. I think it is not an issue of revision, but an issue of implementation. The new Labor Contract Law was made on the basis of our experience in labor affairs over the past decade, so it has solid practical foundations."
Some companies have complained that the regulations will reduce labor flow, weaken enterprise vitality and increase labor costs.
Sun says compared with the previous labor law, the new law has actually made it easier to fire workers and will not lead to rigidity in the labor market.
In response to claims that the new law will frighten away investment, Sun stressed that improved labor relations will help improve the investment environment and also employment.
Sun Baoshu, Vice-Minister of Labor and Social Security, said, "It is not right and also violates the law if some businesses decide to seek higher profits by lowering costs at the expense of social security and the legitimate rights of employees. It is also unfair for well-managed enterprises if other businesses compete with them with lower costs that come from not paying social security for employees."
Sun says the government will soon release more details and supplemental regulations to allow for a more forceful implementation of the law.
Editor:Zhang Pengfei
