13 mins
read

Workers Rights in China: An Overview of Labor Law

Written by
Admin
Published on

Workers' rights in China have been a topic of interest for many years. China has the largest population in the world, and with it comes a large workforce. The Chinese government has implemented several laws and regulations to protect workers' rights, but the implementation and enforcement of these laws have been a challenge.

This guide delves into the reality behind the headlines, offering a revealing snapshot of the current state of workers' rights in China. 

As we peel back the layers of legislation and practice, you'll discover both the strides made and the challenges that remain. 

Join us on this enlightening journey to understand the true landscape of labor in a nation driving global commerce, and why it matters to us all.

The Evolution of Workers' Rights in China

China's workers' rights have undergone significant changes over the years, shaped by the country's historical context and significant milestones. 

This section explores the evolution of workers' rights in China, focusing on the reforms and legislation over the years.

1. Evolution of Labour Law

Before the establishment of the People's Republic of China in 1949, China had no formal labor laws. The first labor law in China was enacted in 1951, shortly after the Communist Party came to power. This law established the basic rights of workers, including the right to organize and strike. Over the years, China has continued to refine its labor laws, with the most recent labor law taking effect in 2008.

One of the significant reforms in China's labor law occurred in 1994 when the country shifted from a planned economy to a market-oriented economy. This shift led to a significant increase in the number of labor disputes, prompting the government to revise its labor laws to better protect workers' rights. The 2008 labor law, for instance, introduced provisions on collective bargaining, severance pay, and social insurance.

2. The Role of the Chinese Communist Party

The Chinese Communist Party (CCP) has played a significant role in shaping China's labor laws and policies. Since the founding of the People's Republic of China, the CCP has been committed to protecting workers' rights and improving their living standards. The party has introduced various measures to ensure that workers receive fair wages, safe working conditions, and other benefits.

Xi Jinping, China's current president, has emphasized the importance of workers' rights and has taken several steps to improve their conditions. In 2018, for instance, the government abolished the "996" work culture, which required employees to work from 9 am to 9 pm, six days a week. The government has also increased the minimum wage and introduced measures to improve workplace safety.

Current State of Workers' Rights in China

China is the world's most populous country with a workforce of over 770 million people. The Chinese government has implemented various labor laws to protect workers' rights, but the practical application of these laws has been a matter of concern.

Overview of Existing Labor Laws

The Labor Contract Law of 2008 is the primary legislation governing labor relations in China. It sets out the minimum standards for employment contracts, including working hours, wages, and social insurance. 

The law also provides for the right to join a union, receive training, and receive compensation for workplace injuries. In addition to this, the Trade Union Law of 1992 requires all enterprises to establish trade unions to protect workers' rights.

Discussion on Enforcement and Practical Application in Various Sectors

Despite the existence of these laws, there have been reports of widespread labor abuses in China. Migrant workers, who make up a significant portion of the workforce, are particularly vulnerable to exploitation. They often work long hours in hazardous conditions without proper safety equipment or compensation. Moreover, they are often not paid on time, or their wages are withheld altogether.

Enforcement of labor laws in China has been inconsistent, with many employers flouting regulations with impunity. The government has been criticized for failing to hold companies accountable for labor abuses, and for suppressing labor activism.

Trade Unions and Workers' Rights in China

Trade unions have a central place in the Chinese Communist Party's ideology, and workers' rights have grown in importance as China moved from a planned economy to a more market-oriented one. 

The first two major pieces of legislation were the 1992 Trade Union Law and 1995 Labour Law, which established the fundamental rights of workers to be paid in full and on time, receive overtime payments and paid leave, and, crucially, to be represented by a trade union.

Trade unions in China are organized by the All-China Federation of Trade Unions (ACFTU), which is the only legally recognized trade union federation in the country. The ACFTU is closely affiliated with the Communist Party of China and its primary function is to promote and protect the interests of workers. However, some critics argue that the ACFTU is little more than a government-controlled organization that does not truly represent the interests of workers.

Non-governmental Organizations (NGOs) Role

Non-governmental organizations (NGOs) have also played a role in advocating for workers' rights in China. However, their contributions have been limited due to the government's stance on labor movements. The Chinese government has been known to crack down on labor activists and organizations that it perceives as a threat to social stability.

Despite the limitations, NGOs have been able to make some progress in improving working conditions and advocating for workers' rights. 

For example, the China Labor Bulletin (CLB) is a Hong Kong-based NGO that has been working to promote workers' rights in China since 1994. The CLB has documented numerous cases of labor rights violations and has been instrumental in advocating for legal reform to protect workers.

International Perspective on Chinese Workers' Rights

International Labor Organizations and Standards

International labor organizations such as the International Labor Organization (ILO) have set standards for workers' rights that are recognized globally. The ILO has identified eight core labor standards that include freedom of association, the right to collective bargaining, and the elimination of forced labor. In this regard, China has ratified several ILO conventions, including the Convention on the Elimination of All Forms of Discrimination Against Women and the Convention on the Rights of the Child.

However, despite these efforts, China has been criticized for not fully implementing these standards in practice. For instance, the right to freedom of association is limited in China, and independent unions are not allowed. Instead, the government operates the All-China Federation of Trade Unions, which is criticized for not representing the interests of workers effectively.

Comparison with Workers' Rights in Other Countries

Compared to other countries, Chinese workers' rights are relatively limited. For example, China does not have a minimum wage that is consistent across the country, and many workers are not paid a living wage. 

Additionally, working hours in China are longer than in many other countries, with many workers working more than 40 hours per week.

However, it is important to note that China has made progress in recent years in improving workers' rights. For example, the government has introduced new labor laws that provide greater protections for workers, and there has been an increase in the number of labor disputes that are resolved through legal channels.

Impact of International Trade Agreements on Workers Rights in China

The impact of international trade agreements on workers' rights in China is a complex issue. On the one hand, trade agreements can provide an opportunity for workers' rights to be protected, as they often include provisions that require signatories to uphold labor standards. However, there are concerns that these provisions are not always enforced effectively.

For example, the United States-Mexico-Canada Agreement (USMCA) includes provisions that require Mexico to improve its labor standards, but there are concerns that these provisions will not be enforced effectively. 

Similarly, the Trans-Pacific Partnership (TPP) included labor standards, but there were concerns that these standards would not be enforced effectively in countries like Vietnam.

Global Brands and Their Influence on Labor Practices in China

Global brands have a significant influence on labor practices in China, as many products are manufactured in China for export to other countries. 

In recent years, there has been increased scrutiny of the labor practices of companies that manufacture products in China, particularly in industries like electronics and apparel.

Many companies have faced criticism for failing to ensure that their suppliers in China uphold labor standards. However, some companies have taken steps to improve labor conditions in their supply chains. 

For example, Apple has introduced a Supplier Code of Conduct that requires suppliers to uphold labor standards and has worked with suppliers to improve working conditions in their factories.

Challenges in Enforcing Workers' Rights

China has made significant progress in protecting workers' rights, but challenges remain in enforcing these rights. 

In this section, we will discuss some of the key challenges that hinder the effective enforcement of workers' rights in China.

1. Regulatory Bodies and Compliance

One of the main challenges in enforcing workers' rights in China is the lack of regulatory bodies and compliance. Although China has a comprehensive set of labor laws, many companies do not comply with them. This is due to the lack of enforcement mechanisms and the underfunded and understaffed labor bureaus and labor inspectorates. As a result, many workers are left without proper compensation or protection.

2. Labour Inspectorates and Dispute Resolution

Labour inspectorates play a crucial role in ensuring that companies comply with labor laws. However, labor inspectorates in China are often understaffed and underfunded, making it difficult for them to carry out their duties effectively. 

This has led to a backlog of unresolved labor disputes, leaving many workers without proper compensation or protection.

3. Media and Public Perception

Another challenge in enforcing workers' rights in China is the role of media and public perception. Although social media has created new opportunities for workers to voice their concerns, the Chinese government closely monitors and censors social media platforms. 

This has limited the ability of workers to organize and demand their rights. Moreover, the media in China is heavily controlled by the government, which often portrays workers' protests as disruptive and harmful to social stability.

What Legal Rights Do Workers Have In China?

China has an extensive legal framework that provides workers with a range of rights and protection against exploitation and discrimination. 

Below are some of the legal rights that workers have in China:

1. Minimum Wage

Workers in China have the right to a minimum wage. The minimum wage varies depending on the region and is adjusted annually. As of 2024, the monthly minimum wage in Shanghai is 2,480 RMB, while in Guangdong it is 2,600 RMB.

2. Employment Contract

Employers in China are required to provide written employment contracts to their employees. The contract must include information such as job duties, working hours, wages, and benefits. The employment contract is an essential legal document that protects the rights of both the employer and the employee.

3. Working Hours

According to Chinese labor law, the standard working hours are eight hours per day and 44 hours per week. Workers are entitled to overtime pay if they work beyond the standard working hours. The overtime pay rate is at least 150% of the regular hourly rate.

4. Paid Leave

Workers in China are entitled to paid leave, including annual leave, sick leave, and maternity leave. The amount of paid leave varies depending on the length of service and the type of leave. For example, workers who have worked for less than one year are entitled to five days of annual leave, while those who have worked for more than 10 years are entitled to 15 days of annual leave.

5. Social Insurance

Employers in China are required to provide social insurance for their employees, including pension insurance, medical insurance, unemployment insurance, and work-related injury insurance. Both the employer and the employee are required to contribute to the social insurance system.

6. Trade Unions

Workers in China have the right to join a trade union. Trade unions are responsible for protecting the rights and interests of workers, negotiating with employers on behalf of workers, and providing legal assistance to workers.

Compensation Structure Under the Labor Code

The Labor Law of the People's Republic of China (1994) is the foundational legislation governing labor relations in China. It covers a wide range of employment-related matters, including compensation structure, employment contracts, working hours, rest days, wages, and occupational safety and health.

Under the Labor Code, employers are required to provide employees with a minimum wage that is at least equal to the local minimum wage standard. The minimum wage is determined by the local government and varies depending on the region. Employers are also required to pay employees for overtime work, night shifts, and work on statutory holidays.

In addition to the minimum wage, employees are entitled to various forms of compensation, including bonuses, allowances, and severance pay. Bonuses are typically paid annually and are based on the employee's performance and the company's overall performance. Allowances may include housing allowances, transportation allowances, and meal allowances.

Severance Pay

Severance pay is required under the Labor Code in certain circumstances, such as when an employee's contract is terminated due to redundancy or when an employee is not at fault for the termination of their contract. The amount of severance pay is based on the employee's length of service and their salary at the time of termination.

It is important to note that there are different types of severance pay under the Labor Code. 

For example, if an employer is at fault for the termination of an employee's contract, the employee may be entitled to double severance pay. This is known as 2N severance compensation.

Case Studies and Real-World Examples

High-Profile Corporations and Factories

China is home to some of the world's biggest factories and corporations. Unfortunately, many of these companies have been accused of violating workers' rights. For example, Apple and its supplier Foxconn have been accused of violating labor laws in their factories in China. In September 2019, China Labor Watch released a report revealing numerous labor rights violations at the Zhengzhou Foxconn factory, the largest iPhone factory in the world.

The report is based on the findings of undercover investigators employed at Zhengzhou Foxconn factory, one of whom worked there for over four years. The report revealed that workers were being forced to work overtime, sometimes up to 100 hours per week, and were being punished for not meeting production targets. Apple has since promised to investigate the allegations and take corrective action.

Walmart is another company that has been accused of labor rights violations in its factories in China. In 2012, workers at a Walmart supplier factory in Shenzhen went on strike to protest against low wages and poor working conditions. The strike was eventually suppressed by the authorities, and several workers were arrested. Walmart has since promised to improve working conditions in its factories in China.

Impact of Social Movements on Legislation

Over the years, social movements have played a significant role in shaping labor laws in China. The China Labour Bulletin (CLB) is one such organization that has been at the forefront of advocating for workers' rights in China. The CLB has documented numerous cases of labor rights violations in China and has called for reforms to the labor laws.

Social movements have also led to the emergence of collective actions in China. For example, in 2010, workers at a Honda factory in Guangdong went on strike to protest against low wages and poor working conditions. The strike eventually led to a 24% pay increase for the workers.

In recent years, there has been a growing trend of collective actions in China, with workers increasingly using social media to organize protests and strikes. The Strike Map is one such platform that tracks collective actions in China. The platform has documented numerous cases of collective actions in China, including strikes by delivery workers, teachers, and healthcare workers.

Conclusion

In conclusion, the current landscape of workers' rights in China is complex and multifaceted. The government has implemented various laws and regulations to protect workers' rights, but enforcement remains inadequate. Companies operating in China have a responsibility to respect workers' rights and comply with local labor laws. NGOs play a crucial role in advocating for workers' rights and providing support to workers in need.

There are several key areas where workers' rights are frequently violated in China. These include wage and hour violations, discrimination, and lack of protection for vulnerable groups such as migrant workers and women. Stakeholders need to address these issues and work towards improving the overall landscape of workers' rights in China.

A call to action is needed for all stakeholders, including the government, companies, NGOs, and workers themselves, to take a proactive approach towards protecting workers' rights in China. This can be achieved through increased awareness, education, and training on labor laws and regulations. Companies should also take responsibility for their supply chains and ensure that their suppliers are complying with local labor laws.

Choi & Partners: Expert Guidance in Labor and Employment Law

Looking for expert support in navigating labor rights? Reach out to Choi and Partners, China's distinguished legal advisors in labor and employment law. 

Our track record speaks volumes: we've successfully secured rightful severance for expatriates, tackled sick leave disputes, corrected unlawful deductions and demotions, and facilitated smooth transitions for expatriates facing contract non-renewal or job exit

With our guidance, ensure your departure is safe and your rights are fully protected. Contact us to safeguard your employment journey.

Frequently Asked Questions

How Does China Treat Its Workers?

China has a large workforce, and the government has implemented various labor laws to protect the rights of workers. However, there have been concerns raised about the enforcement of these labor laws. The government has been criticized for its lack of action in cases of labor rights violations.

What Are the Rules for Working in China?

The Labor Law of the People's Republic of China, enacted in 1995, is the primary law governing employment in China. The law sets out the minimum standards for working conditions, including working hours, rest periods, and wages. Employers are required to provide a safe working environment for their employees.

What annual leave entitlements are provided to employees in China?

According to the Chinese Labor Law, employees are entitled to paid annual leave after working for one year. The amount of annual leave entitlements varies based on the length of service. For example, employees who have worked for one to ten years are entitled to five days of annual leave, while employees who have worked for more than ten years are entitled to fifteen days of annual leave.

What Are the Working Policies in China?

The Chinese government has implemented various policies to improve working conditions and protect the rights of workers. For example, the government has implemented policies to reduce working hours, improve workplace safety, and increase wages. The government has also established labor unions to represent the interests of workers.

Do Chinese Workers Have the Right to Strike?

Chinese workers have the right to strike, but there are restrictions on this right. Under Chinese law, strikes are only permitted in certain circumstances, such as when employers violate labor laws or fail to pay wages. Strikes must also be approved by the government, and workers who participate in unauthorized strikes may face legal consequences.

What Are the Unfair Labor Practices in China?

There have been reports of unfair labor practices in China, including the use of child labor, forced labor, and the exploitation of migrant workers. The Chinese government has taken steps to address these issues, including implementing laws to prohibit the use of child labor and forced labor. However, there have been concerns raised about the enforcement of these laws.

Subscribe to receive updates

Subscribe to receive the latest blog posts to your inbox every week.

By subscribing you agree to with our Privacy Policy.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Related articles

news & insight
No items found.