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Labor Contract Law 

Chapter 1 General Provisions

Article 1 This Law is formulated to improve the labor contract system, to specify the rights and obligations of the parties to labor contracts, to protect the legitimate rights and interests of workers, and to build and develop harmonious and stable employment relationships.

Article 2 This Law applies to the establishment of labor relationships between, the conclusion of, performance of, amendment of, revocation of and termination of, labor contracts by workers and organizations such as enterprises, individual economic organizations and private non-enterprise units in the People's Republic of China (Employers). 

The conclusion, performance, amendment, revocation and termination of labor contracts between state authorities, institutions or social organizations and workers with whom they establish employment relationships, shall be subject to this law. 

Article 3 The conclusion of a labor contract shall be based on the principles of lawfulness, fairness, equality, voluntariness, negotiated consensus and good faith. A lawfully concluded labor contract shall have binding force, both the Employer and the employee shall perform their respective obligations stipulated therein. 

Article 4 Employers shall formulate and improve labor rules and regulations in accordance with the law, so as to ensure that employees enjoy their labor rights and perform their labor obligations. 

The formulations, amendments and decisions made by Employers with respect to rules on labor compensation, working hours, leave and rest, occupational safety and hygiene, insurance and welfare, training, work discipline or work quota management, etc., which have a direct impact on employees immediate rights and interests, or other material matters, shall be presented to and discussed with the employee representative congress or all the employees, and the proposal and advice thereof shall be determined after consultation with the labor union or employee representative on the basis of equality. 

If, during the implementation of a rule or regulation or decision on a material matter, the labor union or any of the employees deems it inappropriate, they shall be entitled to raise the issue with the Employer and have it amended after consultation. 

The Employer shall make rules, regulations and decisions on material matters that have a direct impact on employees immediate interests and rights, public or communicate the same to the employees. 

Article 5 The labor administration authorities of the People's Governments at the county level and above shall, together with labor unions and enterprise representatives, establish a comprehensive tri-partite mechanism for the co-ordination of employment relationships, in order to jointly study and resolve material issues relating to employment relationships. 

Article 6 The labor union shall assist and guide workers in the conclusion and performance of labor contracts with their Employer, and establish a collective consultation mechanism with the Employer in order to protect the lawful rights and interests of workers. 

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