Labor Law of People’s Republic of China

Promulgation Authority: Standing Committee of the National People’s Congress
Promulgating Date: 1994.7.5
Source: MOFCOM

Table of Contents

Chapter I General Provisions 

Article 1: This Law is formulated in accordance with the Constitution in order to protect the legal rights and interests of laborers, readjust labor relationships, establish and safeguard a labor system suited to the socialist market economy, and promote economic development and social progress.

Article 2: This Law applies to all enterprises and individual economic entities (“Employers”) within the territory of the People’s Republic of China, and laborers who establish a labor relationship with Employers.

State organs, public institutions and social organizations, shall follow this Law, as shall laborers who establish contractual labor relationships with them.

Article 3: Laborers shall have the right to be employed equally and choose their occupation, the right to obtain remuneration for their work, the right to take rests and holidays, the right to occupational safety and health, the right to receive vocational skill trainings, the right to enjoy social insurance and welfare, the right to petition for the settlement of labor disputes, and other labor rights prescribed by laws.

Laborers shall fulfill their workplace responsibilities, improve their vocational skills, follow rules on occupational safety and health, and observe labor discipline and professional ethics.

Article 4: Employers shall establish and perfect rules and regulations in compliance with the law, so as to secure laborers’ right to work and help laborers to fulfill their labor obligations.

Article 5: The State shall take various measures to promote employment, develop vocational education, lay down labor standards, adjust standard wages, perfect the social insurance system, coordinate labor relationships, and gradually raise the living standard of laborers.

Article 6: The State shall promote the participation of laborers in volunteer work for the benefit of society; establish a competitive work environment which rewards laborers for proposals of continuously improving products and process; encourage and protect scientific research, technical innovation and renovation engaged in by laborers, as well as their inventions and creations; and commend and give awards to model laborers and advanced workers.

Article 7: Laborers shall have the right to unionize or be unionized under the law. Trade Unions shall represent and safeguard the legal rights and interests of laborers, and shall be allowed to independently conduct their activities under the law.

Article 8: Laborers shall, through the General Meeting of Workers and Staff Members or Workers’ Congress, or other forms under the laws, rules and regulations, take part in democratic management and consult with employers on an equal basis regarding the protection of their legal rights and interests.

Article 9: The labor administrative department of the State Council shall be in charge of labor issues around the country. The labor administrative departments of the local people’s governments at or above the county level shall be in charge of the labor issues in the administrative areas under their respective jurisdictions.

Chapter II Promotion of Employment

Article 10: The State shall create conditions for employment and increase opportunities for employment by promoting economic and social development. The State shall encourage enterprises, public institutions, and social organizations to initiate industries and expand businesses to increase employment while maintaining compliance with the laws, administrative rules, and regulations. The State shall support laborers who attempt to obtain employment by organizing themselves on a voluntary basis or engaging in individual businesses.

Article 11: Local people’s governments at different levels shall take measures to develop job-introduction agencies offering employment services.

Article 12: Laborers shall not be discriminated against because of their ethnicity, race, gender, or religion.

Article 13: Females shall enjoy equal rights as males in employment. The use of gender as a pretext for excluding females from employment, or to raise employment standards for females, shall not be allowed in the recruitment of staff or workers, except for those types of work or posts not suitable for females as prescribed by the State.

Article 14: Where there are special laws, rules, or regulations related to the employment of disabled personnel, national minorities, and demobilized army men, said special laws, rules, or regulations shall govern.

Article 15: No Employers shall be allowed to recruit juveniles under the age of 16. Special Employers of literature, art, sports, and special crafts that are privileged to recruit juveniles under the age of 16 must go through the formalities of examination and approval according to the relevant provisions of the State, and guarantee employed juveniles their right to compulsory education.

Chapter III Employment Contracts and Collective Agreements 

Article 16: A labor contract is an agreement reached between a laborer and an Employer for the establishment of the labor relationship and the determination of the rights, interests, and obligations of each party. A labor contract shall be concluded when a labor relationship is to be established.

Article 17: Conclusion and modification of a labor contract shall follow the principles of equality, voluntariness, and unanimity through consultation, and shall not violate laws, administrative rules, or regulations. A labor contract, once concluded under law, possesses legal binding force. The parties involved must fulfill the obligations stipulated in the labor contract.

Article 18: The following labor contracts shall be invalid:

(1) Labor contracts concluded in violation of laws, administrative rules, and regulations;

(2) Labor contracts concluded by means such as fraud and coercion.

An invalid labor contract shall have no legal binding force. Where part of a labor contract is confirmed as invalid and the validity of the remaining part is not affected, the remaining part shall remain effective. The invalidity of a labor contract shall be confirmed by a labor dispute arbitration committee or a people’s court.

Article 19: A labor contract shall be concluded in written form and contain the following clauses:

(1) term of labor contract;

(2) job description;

(3) labor protection and working conditions;

(4) labor remuneration;

(5) working disciplines;

(6) conditions for the termination of a labor contract; and

(7) liabilities for breach of a labor contract.

Except for the essential clauses specified in the preceding paragraph, the contents of a labor contract shall be determined through consultation by the parties involved.

Article 20: The term of a labor contract shall be defined as either a fixed term, non-fixed term, or term measured by the completion of a certain task. If a laborer has worked for the same employer for ten years or more and the parties involved agree to renew or extend the labor contract, a labor contract with a non-fixed term should be concluded between them if the laborer so requests.

Article 21: The parties may agree upon a probation period in a labor contract. The probation period shall not exceed six months.

Article 22: The parties to a labor contract may reach an agreement on matters concerning the non-disclosure of trade secrets.

Article 23: A labor contract shall terminate upon the expiration of its term, or upon the emergence of conditions terminating the labor contract, as agreed by the parties involved.

Article 24: A labor contract may be terminated upon agreement of the parties involved.

Article 25: The Employer may terminate the labor contract if the laborer:

(1) is proved not to satisfy the requirements of employment during the probation period;

(2) seriously violates the working disciplines, rules, or regulations of the employer;

(3) causes substantial losses to the employer due to serious dereliction of duty or practices graft or corruption;

 (4) is convicted for criminal liability in accordance with the law.

Article 26: An Employer may terminate a labor contract by providing written notification to the laborer 30 days in advance where:

(1)  a laborer is unable to take up his original work or any new work arranged by the employer after the termination of a medical treatment period initiated by illness or injury not caused by work;

(2) a laborer is incompetent for his work and remains incompetent after receiving training or an adjustment of his working post; or

(3) the objective situations taken as the basis for the conclusion of the contract have greatly changed so that the original labor contract can no longer be carried out and no agreement on modification of the labor contract can be reached through consultation by the parties involved.

Article 27: Where an employer is within the period of statutory rectification after coming to the brink of bankruptcy or runs into difficulties in production and management, the Employer may make necessary staff reductions after it has explained the situation to the trade union or all of its employees 30 days in advance, solicited opinions from them and reported to the labor administrative department. If the employer recruits personnel within six months after the staff reduction effected by this Article, the reduced personnel have priority to be re-employed.

Article 28: The employer shall make economic compensation in accordance with the relevant regulations of the State if it terminates its labor contracts according to Article 24, Article 26, or Article 27 of this Law.

Article 29: An Employer shall not terminate its labor contract with a laborer by referring to Article 26 or Article 27 of this Law where the laborer: 

(1) has been confirmed to have totally or partially lost the ability to work due to occupational diseases or work-related injuries;

(2) is within the statutory medical treatment period for diseases or injuries;

(3) is a female employee in her pregnancy, puerperium, or lactation period; or

(4) other circumstances prescribed by laws, administrative rules, and regulations.

Article 30: The trade union of the Employer shall have the right to propose its opinions if it regards as inappropriate the termination of a labor contract by the employer. If the employer violates laws, rules, regulations or labor contracts, the trade union shall have the right to require the employer to reconsider its decision. Where a laborer applies for arbitration or files a lawsuit against their Employer, the trade union shall render him support and assistance in accordance with the law.

Article 31: A laborer who intends to terminate his labor contract shall give written notice to the Employer 30 days in advance.

Article 32: A laborer may terminate a labor contract with an Employer at any time by providing notice where:

(1) the contract is within the probation period;

(2) the Employer forces the laborer to work by resorting to violence, coercion or illegal restriction of personal freedom; or

(3) the Employer fails to pay labor remuneration or to provide working conditions as agreed upon in the labor contract.

Article 33: The employees of an enterprise as one party may conclude a collective contract with the enterprise on matters related to labor remuneration, working hours, rest and vacations, occupational safety and health, and insurance and welfare. The draft of the collective contract shall be submitted to the Workers Congress or all the employees for discussion before adoption. A collective contract shall be concluded with the enterprise by the trade union on behalf of the employees; in an enterprise where the trade union has not yet been set up, such contract shall be concluded with the enterprise by the representatives elected from the employees.

Article 34: A collective contract shall be submitted to the labor administrative department after its conclusion. The collective contract shall go into effect automatically if no objections are raised by the labor administrative department within 15 days from the date of the receipt of a contract text.

Article 35: Collective contracts concluded under laws have the binding force to both the enterprise and all of its employees. The standards on working conditions and labor remuneration agreed upon in labor contracts concluded between individual laborers and the enterprise shall not be lower than those stipulated in collective contracts.

Chapter IV Working Hours, Rest, and Vacations

Article 36: The State shall establish a working hour system under which laborers shall work for no more than eight hours a day and no more than 44 hours a week, on average.

Article 37: For laborers working by piecework, the Employer shall rationally set quotas of work and standards for piecework remuneration in accordance with the working hour system prescribed in Article 36 of this Law.

Article 38: The Employer shall guarantee that its laborers have at least one day off per week.

Article 39: Where an enterprise cannot follow Article 36 or Article 38 of this Law due to its special production nature, it may adopt other rules on working hours and rest with the approval of the labor administrative department.

Article 40: The employer shall arrange holidays for laborers in accordance with the law during the following festivals:

(1)  New Year’s Day;

(2)  Spring Festival;

(3)  International Labor Day;

(4)  National Day; and

(5)  other holidays in-laws and regulations.

Article 41: The employer may extend working hours due to the requirements of its production or business after consultation with the trade union and laborers, but the extended working hour for a day shall generally not exceed one hour. If such extension is necessary due to special reasons, the extended hours shall not exceed three hours a day, under the condition that the health of laborers is secured. The total extension of work in a month shall not exceed 36 hours.

Article 42: The extension of working hours shall not be subject to the restriction in Article 41 of this Law where:

(1) emergency actions are necessitated by a natural disaster, accident, or other event that threatens the life, health safety, or property of the laborers;

(2) prompt rush repair is needed after the breakdown of production equipment, transportation lines, or public facilities that affect production and public interests; or

(3) other circumstances as prescribed by laws, administrative rules, and regulations.

Article 43: An Employer shall not extend the working hours of laborers in violation of the provisions of this Law.

Article 44: An Employer shall, according to the following standards, pay laborers remunerations higher than those for normal working hours;

(1) no less than 150 percent of the normal wages if the extension of working hours is arranged;

(2) no less than 200 percent of the normal wages if the extended hours are arranged on days of rest and no deferred rest can be taken; or

(3)  no less than 300 percent of the normal wages if the extended hours are arranged on statutory holidays.

Article 45: The State institutes a system of annual vacation with pay. Laborers who have worked continuously for one year or more shall be entitled to annual vacation with pay. This system shall be formulated by the State Council.

Chapter V Wages 

Article 46: The distribution of wages shall follow the principles of distribution according to work and equal pay for equal work. The level of wages shall be gradually raised on the basis of economic development. The State shall exercise macro-regulations and macro-controls over total wages.

Article 47: An Employer has autonomy under the Law to independently determine its form of wage distribution and wage level, based on the characteristics of its production and business and economic performance.

Article 48: The State shall implement a system of guaranteed minimum wages. Specific standards on minimum wages shall be determined by the people’s governments of provinces, autonomous regions or municipalities and reported to the State Council for recordkeeping. Wages paid to laborers by an Employer shall not be lower than the local standards on minimum wages.

Article 49: The determination and readjustment of the standards on minimum wages shall be made with reference to the following factors in a comprehensive manner:

(1) the lowest living expenses of laborers themselves and the average family members that need support;

(2) the average wage level of the society as a whole;

(3) labor productivity;

(4) the rate of employment; and

(5) the different levels of economic development among regions.

Article 50: Wages shall be paid on a monthly basis to laborers in the form of currency. The wages paid to laborers shall not be deducted or defaulted without justification.

Article 51: The Employer shall, in accordance with laws, pay wages to laborers during the statutory holidays, periods of marriage, funeral, or participation in social activities.

Chapter VI Occupational Safety and Health

Article 52: The Employer must establish and perfect a system for occupational safety and health, strictly implement the rules and standards of the State on occupational safety and health, educate laborers on occupational safety and health, prevent accidents in the process of work, and reduce occupational hazards.

Article 53: Facilities of occupational safety and health must meet the standards laid by the State. In projects of new installation, renovation or expansion, the facilities of occupational safety and health must be designed, constructed and put into operation and use at the same time as the main project.

Article 54: The Employer must provide laborers with occupational safety and health conditions conforming to the regulations of the State and applicable articles on labor protection, and provide regular health examinations for laborers engaged in work with occupational hazards.

Article 55: Laborers to be engaged in specialized operations must receive specialized training and acquire appropriate qualifications.

Article 56: Laborers must strictly abide by rules for safe operation in the process of their work. Laborers shall have the right to refuse to operate if the management personnel of the Employer command the operation in violation of rules and regulations, or force laborers to take risks in operation. Laborers shall have the right to criticize, report, or file charges where such acts endanger their life or health.

Article 57: The State shall establish a system for the statistics, reports, and dispositions of work-related accidents resulting in injuries, deaths, or cases of occupational diseases. The Employer, labor administrative departments, and other relevant departments of the people’s governments at or above the county level shall, according to laws, compile statistics on work-related accidents resulting in injuries, deaths, or occupational diseases, and report and resolve any issues arising from those kinds of accidents.

Chapter VII Special Protection for Female and Juvenile Workers

Article 58: The State shall provide female workers and juvenile workers with special protections. “Juvenile workers” shall be defined as laborers between the ages of 16 and 18.

Article 59: It is prohibited to engage female workers in work down the pit of mines, or work with Grade IV physical labor intensity as prescribed by the State, or other work that female workers should avoid.

Article 60: During their menstrual period, it is prohibited to engage female workers in work high above the ground, under low temperature, in cold water, or in work with Grade III physical labor intensity as prescribed by the State.

Article 61: During pregnancy, it is prohibited to engage female workers in work with Grade III physical labor intensity as prescribed by the State, or other work that they should avoid in pregnancy. Female workers pregnant for seven months or more shall not have their working hours extended, or be placed on night shifts.

Article 62: After childbirth, female workers shall be entitled to no less than 90 days of maternity leave with pay.

Article 63: During their lactating period, female workers with babies less than one-year-old shall not be engaged in work with Grade III physical labor intensity as prescribed by the State, or other labor that they should avoid during their lactation period, and shall not have their working hours extended, nor shall they be placed on night shifts.

Article 64: Juvenile workers shall not be engaged in work down the pit of mines, work that is poisonous or harmful, work with Grade IV physical labor intensity as prescribed by the State, or other work that they should avoid.

Article 65: The Employer shall provide regular physical examinations to juvenile workers.

Chapter VIII Vocational Training

Article 66: The State shall take measures through various channels to expand vocational training undertakings, so as to develop the professional skills of laborers, improve their personal qualities, and strengthen their employment and work capabilities.

Article 67: People’s governments at various levels shall incorporate the development of vocational training into their social and economic development planning, and shall encourage and support all enterprises, public institutions, social organizations, and individuals, as conditions permit, to sponsor all kinds of vocational training.

Article 68: The Employer shall establish a system for vocational training, raise and use funds for this system in accordance with the provisions of the State, and provide laborers with vocational training in a planned manner, taking into account the actual situation of the Employer. Laborers to be engaged in technical work must receive pre-job training before taking up their posts.

Article 69: The State shall determine occupational classifications, set up professional skill standards for the occupations classified, and establish a system of vocational qualification certificates. Examination and evaluation organizations authorized by the Government shall be responsible for the examination and evaluation of the professional skills of laborers.

Chapter IX Social Insurance and Welfare

Article 70: The State shall develop social insurance undertakings, establish a social insurance system, and set up social insurance funds so that laborers may receive assistance and compensation under such circumstances as old age, illness, work-related injury, unemployment, and childbearing.

Article 71: The level of social insurance shall be proportional to the level of social development and economic achievement, and shall promote development and social sustainability.

Article 72: The source of social insurance funds shall be determined according to the categories of insurance. An overall pooling of insurance funds shall be introduced step by step. Employers and laborers must participate in social insurance and pay social insurance premiums under the law.

Article 73: Laborers shall, in accordance with the law, enjoy social insurance benefits for:

(1) retirement;

(2) illness or injury;

(3) disability caused by a work-related injury or occupational disease;

(4) unemployment; and 

(5) childbearing.

The relatives of insured laborers shall be entitled to subsidies in accordance with the law. The requirements and standards for laborers to enjoy social insurance benefits shall be laid out by laws, rules, and regulations. The social insurance amount that laborers are entitled to must be paid in full in a timely manner.

Article 74: Agencies in charge of social insurance funds shall collect, expend, manage and operate the funds in accordance with the provisions of the law, and are responsible for maintaining and raising the value of those funds. The supervisory organizations of social insurance funds shall exercise supervision over the revenue, expenditure, management, and operation of social insurance funds in accordance with the law. The establishment and function of the agencies in charge of social insurance funds and the supervisory organizations of social insurance funds shall be prescribed by law. No organization or individual shall be allowed to misappropriate social insurance funds.

Article 75: The State shall encourage Employers to establish supplementary insurance programs for laborers where practical. The State advocates that laborers establish a savings account as a form of personal insurance.

Article 76: The State shall develop social welfare undertakings, construct public welfare facilities, and provide laborers with conditions for taking rest, recuperation, and rehabilitation. Employers shall create conditions that improve the collective welfare and raise the social welfare standards of laborers.

Chapter X Labor Disputes

Article 77: When a labor dispute between Employers and laborers takes place, the parties concerned may apply for mediation or arbitration, initiate legal proceedings according to law, or seek a settlement through consultation. The principle of mediation shall apply to the procedures of arbitration and lawsuit proceedings.

Article 78: The settlement of a labor dispute shall follow the principles of legitimacy, impartiality, and promptness so as to safeguard the legal rights and interests of the parties involved.

Article 79: When a labor dispute takes place, the parties involved may apply to the labor dispute mediation committee of their Employer for mediation; if the mediation fails and one of the parties requests arbitration, that party may apply to the labor dispute arbitration committee for arbitration. If one of the parties is not satisfied with the adjudication of arbitration, the party may file a lawsuit in a people’s court. 

Article 80: A labor dispute mediation committee may be established within the Employer. The committee shall be composed of representatives of the employees, representatives of the employer, and representatives of the trade union. The chairman’s position on the committee shall be held by a representative of the trade union. Agreements reached on labor disputes through mediation shall be implemented by the parties involved.

Article 81: A labor dispute arbitration committee shall be composed of representatives of the labor administrative department, representatives of the trade union at the corresponding level, and representatives of the employer. The chairman’s position on the committee shall be held by a representative of the labor administrative department.

Article 82: The party that requests arbitration shall file a written application to a labor dispute arbitration committee within 60 days from the date of the occurrence of a labor dispute. The arbitration committee may generally make adjudication within 60 days from the date of receiving the application. The parties involved must implement the adjudication if no objections are raised.

Article 83: When a party involved in a labor dispute regards as unacceptable the adjudication made by the arbitration committee, the party may bring a lawsuit to a people’s court within 15 days from the date of receiving the written ruling of arbitration. Where one of the parties involved neither brings a lawsuit nor implements the adjudication of arbitration within the statutory time limit, the other party may apply to a people’s court for compulsory implementation.

Article 84: When a dispute arises from the conclusion of a collective contract and no settlement can be reached through consultation by the parties concerned, the labor administrative department of the local people’s government may organize the relevant parties to settle the case in coordination. When a dispute arises from the implementation of a collective contract and no settlement can be reached through consultation by the parties concerned, the dispute may be submitted to the labor dispute arbitration committee for arbitration. Any party that regards as unacceptable the adjudication of arbitration may bring a lawsuit to a people’s court within 15 days from the date of receiving the adjudication.

Chapter XI Supervision and Inspection

Article 85: The labor administrative departments of people’s governments at or above the county level shall, in accordance with the law, supervise and inspect the implementation of laws, rules, and regulations concerned with labor by the Employer, and shall have the power to stop and order rectification of any acts that run counter to laws, rules, and regulations concerned with labor.

Article 86: The inspectors from the labor administrative departments of people’s governments at or above the county level shall while performing their public duties, have the right to enter Employers’ workplace to conduct investigations on the implementation of laws, rules, and regulations concerned with labor, examine necessary data and inspect the workplace. The inspectors from the labor administrative departments of people’s governments at or above the county level must show their certifications while performing public duties, impartially enforce laws, and abide by relevant regulations.

Article 87: Relevant departments of people’s governments at or above the county level shall, within the scope of their respective duties and responsibilities, supervise the implementation of laws, rules, and regulations concerned with labor by Employers.

Article 88: Trade unions at various levels shall, in accordance with the law, safeguard the legal rights and interests of laborers, and supervise the implementation of laws, rules, and regulations concerned with labor by Employers. Any organization or individual shall have the right to expose or allege acts in violation of laws, rules, and regulations concerned with labor.

Chapter XII Legal Responsibility

Article 89: When an Employer formulates rules and regulations concerned with labor that run counter to the law, the labor administrative department shall give a warning to the Employer and order rectification. If any harm have been caused to laborers, the Employer shall be liable for damage compensations.

Article 90: If an Employer extends the working hours of laborers in violation of the regulations of this Law, the labor administrative department shall give it a warning, order rectification, and may impose a fine.

Article 91: Where an Employer infringes in any of the following ways the legal rights and interests of laborers, the labor administrative department shall order it to pay laborers remuneration or to pay economic compensation, and may also order it to pay administrative compensation:

(1) the deduction of wages or default on wages of laborers without reason;

(2) refusal to pay laborers remuneration for extended working hours;

(3) the payment of wages below the local standard on minimum wages; or

(4) failure to provide laborers with economic compensation in accordance with the provisions of this Law after the termination of labor contracts.

Article 92: If the occupational safety facilities and health conditions in an Employer’s workplace do not comply with the provisions of the State, or if the Employer fails to provide laborers with necessary labor protection articles and labor protection facilities, the labor administrative department and other relevant departments shall order it to make corrections, and may impose a fine. If circumstances are serious, said departments shall report to a people’s government at or above the county level for a decision to order the Employer to suspend operations and make rectification. If the Employer fails to take measures against potential accident which later leads to the occurrence of a serious accident and economic or personal losses, the persons in charge shall be investigated for criminal responsibility in accordance with Article 187 of the Criminal Law.

Article 93: If an Employer forces laborers to perform risky operations in violation of the rules and regulations, and those operations later cause a major accident that results in serious injuries or deaths, the person in charge shall be investigated for criminal liability under the law.

Note: This sentence in Article 92, “shall be investigated for criminal responsibility in accordance with Article 187 of the Criminal Law”, has been changed to “shall be investigated for criminal responsibility in accordance with related regulations of the Criminal Law”

Article 94: If an Employer illegally recruits juveniles under the age of 16, the labor administrative department shall order rectification and impose a fine. If circumstances are serious, the administrative department for industry and commerce shall order revocation of the Employers’ business license.

Article 95: If an Employer infringes on the legal rights and interests of female or juvenile workers in violation of the protective regulations of this Law, the labor administrative department shall order the Employer to make corrections and impose a fine. If harms to female or juvenile workers have been caused, the Employer shall assume responsibility for damage compensations.

Article 96: Where an Employer commits one of the following acts, the person responsible shall be taken by a public security organ into custody for 15 days or less, or fined, or given a warning, and an investigation into the criminal liability of said person shall be conducted if the act constitutes a crime::

(1) forcing laborers to work by resorting to violence, intimidation or illegal restriction of personal freedom; or

(2) humiliating, inflicting corporal punishment, beating, illegally searching or detaining laborers.

Article 97: An Employer shall bear responsibility for damage compensation if the conclusion of any invalid contract is attributed to the Employer and has caused damages to their laborers.

Article 98: An Employer that terminates labor contracts in violation of the conditions specified in this Law, or purposely delays the conclusion of labor contracts, shall be ordered by the labor administrative department to make corrections and shall bear responsibility for damage compensation if any damage has been caused to their laborers.

Article 99: An Employer that recruits laborers whose labor contracts have not yet been terminated shall, according to law, assume joint responsibility for damage compensation if economic losses have been caused to the original Employer of the laborers.

Article 100: If an Employer fails to pay social insurance premiums without reason, the labor administrative department shall order the Employer to pay within the prescribed time limit. If the Employer still fails to make the payment beyond the time limit, an additional overdue fine may be charged.

Article 101: Where an Employer unjustifiably obstructs the labor administrative department, other relevant departments, or their functionaries from exercising the powers of supervision and inspection or retaliates against informers, the labor administrative department, or other relevant departments shall impose fines upon the Employer. If such acts constitute a crime, the person in charge shall be investigated for criminal liability.

Article 102: If a laborer terminates a labor contract in violation of the conditions specified in this Law or violates confidentiality agreement in the labor contract, and if such actions have caused economic losses to the Employer, the laborer shall be liable for damage compensation in accordance with the law.

Article 103: Functionaries of the labor administrative department or other relevant departments who abuse their functions and powers, neglect their duties, or engage in malpractice for selfish ends, shall be investigated for criminal liability if a crime is constituted, or shall be given an administrative penalty if the offenses do not constitute a crime. 

Article 104: Functionaries of the State or the agencies in charge of social insurance funds who misappropriate social insurance funds shall be investigated for criminal liability according to the law if the action constitutes a crime.

Article 105: Where other laws or administrative rules and regulations have specified punishments for the infringement of the legal rights and interests of laborers for acts that also violate the prescriptions of this Law, punishments shall be given in accordance with the prescription of those laws or administrative rules and regulations.

Chapter XIII Supplementary Provisions 

Article 106: People’s governments of provinces, autonomous regions, and municipalities shall work out the implementing measures for the labor contract system according to this Law and in light of their local conditions, and report the measures to the State Council for recordkeeping.

Article 107: This Law shall become effective on January 1, 1995.

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