编者按：2007年4月，本所与全省发行的英文杂志IN TOUCH(月刊)建立合作关系，由国际经贸法律部负责编写英文稿件，结合外国人、外国企业关心的常见法律事务，分“住在杭州”、“行在杭州”、“创业在杭州”、“生活在杭州”等版块，在2007年5月至2008年4月的每期杂志上刊登一个版面的文章。本所还担任了该刊物的姐妹报纸HANGZHOU WEEKLY的常年法律顾问。以下是本所刊登在IN TOUCH 杂志2007年9月的稿件。

　　　　　　　　　　　　　　　　　　LABOR CONTRACT LAW: WHAT NEW
　　With 190,000 comments from the mass scrupulously deliberated during the four readings, the long-anticipated Labor Contract Law of China was finally passed at the end of June and will come into force on the first day of next year.
　　The law is regarded as a significant step forwards in protecting the rights of the employees and meanwhile, a great challenge to the HR management of enterprises in China. Whether you are the employee or the boss, to have a view of the key points of the new law is definitely helpful:
　　　　　　　　　　　　　　　　Conclusion of Written Labor Contracts
　　When hiring the employee, the new law requires the written labor contract to be signed within one month after hiring the employee. A double salary shall be paid to the employee if a written labor contract is signed after one month but less than one year. If the employer does not sign the written labor contract with the employee within one year, then it will be deemed that the two parties have entered into a labor contract without a fixed term.
　　　　　　　　　　　　　　　　　　　Probationary Period
　　The new law expressly sets the cap for probationary period as follows:

　　To require the same employee to serve more than one probationary period is not allowable and the probationary period must be included in the labor contract term.
　　　　　　　　　　　　　　　　　　　Non-competition
　　For non-competition obligations, the new law lays down the ceiling of 2 years for the time length, and strictly confines the subjects for such obligations to senior management personnel, senior technical personnel, or employees of other positions subject to　confidentiality obligations. Monthly compensation shall be paid to the employee during the period of non-competition restriction as the consideration, but the law did not specify the amount.
　　The clause of penalty for breach of contract set against the employees are only allowable under circumstances of non-competition or service period after being trained by the employer.
　　　　　　　　　　　　　　　　Employee Right to End the Contract
　　Under the new law, the employee is entitled to end the labor contract in three forms: by 30-day (3-day during probationary period) prior notice, upon which there are no restraints for application; by notice at any time, which is applicable only when the conduct of employer falls within the circumstances as stipulated in section 1 of Article 38 of the law; end immediately with no notice, which is applicable under severe circumstances as stipulated in section 2 of the same article, such as coercive labor, etc.
　　　　　　　　　　　　　　　　　　　　Severance Pay
　　The employee may be surprised to receive the severance pay from the boss when the fixed-term labor contract expires except where offer of renewal with the same or more favorable terms from the employer is declined by the employee or when the labor contract is terminated by mutual consent where the termination is initiated by the employer. However, this is what the new law states.
　　The amount of the severance pay is monthly average salary　multiplying working years for common employees or triple the local average salary for the last year multiplying the working years (at most 12 years) for employees whose salaries are more than three times the local average salary.
　　　　　　　　　　　　　　　　　　　　Labor Dispatch
　　Arrangement of labor dispatch is widely used in foreign-related labor relationships. The rules under the new law fill in the gap of the previous legislation. To name a few of the rules: the dispatching agency shall sign a fixed term contract with a term of more than two years with its dispatched employees and to pay salaries on a monthly basis; the scope of labor dispatch arrangement is restricted to temporary, auxiliary or fungible positions; the receiving unit shall observe the“equal pay for equal work” obligation, etc.
　　This short article for sure can not cover the lengthy new law. For the subjects not covered here or other labor law enquires, you may contact the labor protection hotline 12333 or Brighteous lawyers for help or advice.