ISSN 1556-6757















Volume 3, Issue 1, 2012, ISSN 1948-576X
China’s Labor Contract System from Planned to Market Economy
Susan Leung

The labor contract system is the most significant move by the Chinese Government to end life-long employment in its modernization drive since 1978. It was first experimented in joint ventures in the Special Economic Zones and later extended to state enterprises. The 1995 Labor Law was the first national law to introduce a labor contract system to break the ‘iron rice bowl’. However, employers’ exploitation of workers continued. The Labor Contract Law was passed in 2007 to fill the many gaps left open by the Labor Law. Unfortunately, implementation of the Labor Contract Law coincided with global financial crisis and recession. Workers in China do not seem to have the protection this Law would anticipate to provide and enforcement remains a problem. Full Article