China defends labour law, employers reluctant

BEIJING:
Chinese functionaries defended on Lord'S Day a new labor contract law that brands it
tougher to open fire employees and said it would not raise the cost of doing
business, but conceded they faced resistence from loath employers. The law, which took consequence on
Jan. 1, necessitates houses to give open-ended contracts to staff who have got worked for
10 old age or completed two fixed-term contracts and authorizations higher company
contributions to pension and coverage funds. "The issue now is not
revision, but full enforcement," Sun Baoshu, Frailty Curate of Labor and Social
Security, told a news conference at China's yearly session of parliament. Despite ailments from
employers, some of whom he said mightiness attempt to "lower labor costs through
non-compliance", the law had only been in topographic point for three calendar months and it was too
early to see amendments. "The added cost of this law is
actually very limited," Sun said. The law have prompted concerns that it could
lead to greater rigidness in the employment marketplace in China, a state whose
growth have relied on inexpensive labour, and military unit up concern costs. But rising reward will also
help with China's ends of boosting domestic consumption, and better protection
of workers and improved workings statuses suit with its purpose of edifice a more
equitable -- and less restive -- society. "The open-term contract is by
no agency an Fe rice bowl. It will not take to rigidness in the labor market,"
Sun said, referring to the cradle-to-grave system of employment that was the
norm for urban workers under China's planned economy. "I believe these concerns are a
result of uncomplete or inaccurate interpretation," Sun said.