and effective as of January 1, 1995)

Chapter I

General Provisions

Article 1

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

Article 2

This Law applies to all enterprises and individual economic organizations
(hereinafter referred to as employing units) within the borders of the People's
Republic of China and the laborers who form a labor relationship therewith.
State organs, institutional organizations and societies as well as laborers who
form a labor contract relationship therewith shall follow this Law.

Article 3

Laborers shall have the right to be employed on an equal basis, choose
occupations, obtain remuneration for their labor, take rest, have holidays and
leaves, obtain protection of occupational safety and health, receive training in
vocational skills, enjoy social insurance and welfare, and submit applications
for settlement of labor disputes, as well as other rights relating to labor as
stipulated by law.
Laborers shall fulfill their labor tasks, improve their vocational skills, follow
rules on occupational safety and health, and observe labor discipline and
professional ethics.

Article 4

The employing units shall establish and perfect rules and regulations in
accordance with the law in order to ensure that laborers enjoy the right to
work and fulfill labor obligations.
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Article 5 The State shall take various measures to promote employment, develop
vocational education, lay down labor standards, regulate social incomes,
perfect the social insurance system, coordinate labor relationships, and
gradually raise the living standard of laborers.

Article 6

The State shall advocate the participation of laborers in social voluntary labor
and the development of their labor competitions and activities of forwarding
rational proposals, encourage and protect the scientific research and technical
renovation engaged by laborers, as well as their inventions and creations; and
commend and reward model laborers and advanced workers.

Article 7

Laborers shall have the right to participate in and organize trade unions in
accordance with the law.
Trade unions shall represent and safeguard the legitimate rights and interests
of laborers and independently conduct their activities in accordance with the
law.

Article 8

Laborers shall, through the assembly of staff and workers or their congress,
or other forms in accordance with the provisions of laws, rules and
regulations, take part in democratic management or consult with the
employing units on an equal footing about protection of the legitimate rights
and interests of laborers.

Article 9

The labor administrative department of the State Council shall be in charge of
labor management throughout the entire country.
The labor administrative departments of the local People’s Governments at or
above the county level shall be in charge of labor management in the administrative areas under their respective jurisdictions.

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Chapter II
Promotion of Employment

Article 10

The State shall create conditions for employment and increase opportunities
for employment by means of promoting economic and social development.
The State shall encourage enterprises, institutional organizations, and societies
to introduce new industries or expand businesses for the purpose of
increasing employment opportunities within the scope of the stipulations of
laws and administrative rules and regulations.
The State shall encourage laborers to find jobs on their own through
organizing themselves on a voluntary basis, or by engaging in private
entrepeunerial business.

Article 11

Local People’s Governments at various levels shall take measures to develop
various kinds of job-introduction agencies and provide employment services.

Article 12

Laborers shall not be discriminated against in employment, regardless of their
ethnic community, race, sex, or religious belief.

Article 13

Females shall enjoy equal rights as males in employment. It shall not be
allowed, in the recruitment of staff and workers, to use sex as a pretext for
excluding females from employment or to raise recruitment standards for the
females, except for the types of work or posts that are not suitable for females
as stipulated by the State.

Article 14

Where there are special stipulations in laws, rules and regulations on the
employment of the disabled, the personnel of national minorities, and
demobilized members of the army, such special stipulations shall apply.

Article 15

No employing units shall be allowed to recruit juveniles under the age of 16.
Units of literature and art, physical culture and sport, and special arts and
crafts that need 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 their right to compulsory education.

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Chapter III
Labor Contracts and Collective Contracts

Article 16

A labor contract is the agreement reached between a laborer and an
employing unit for the establishment of the labor relationship and the
definition of the rights, interests and obligations of each party.
A labor contract shall be concluded where a labor relationship is to be
established.

Article 17

Conclusion and modification of a labor contract shall follow the principles of
equality, voluntary participation and unanimity through consultation, and shall
not run counter to the stipulations of laws, administrative rules and regulations.
A labor contract once concluded in accordance with the law shall possess
legal binding force. The parties involved must fulfill the obligations as
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; and
(2) labor contracts concluded by resorting to such measures as cheating
and intimidation.
An invalid labor contract shall have no legal binding force from the very
beginning of its execution. Where a part of a labor contract is confirmed as
invalid and where the validity of the remaining part is not affected, the
remaining part shall remain valid.
The invalidity of a labor contract shall be confirmed by a labor dispute
arbitration committee or a people's court.

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Article 19

A labor contract shall be executed in written form and contain the following
clauses:
(1) term of the labor contract;
(2) contents of work;
(3) labor protection and working conditions;
(4) labor remuneration;
(5) labor disciplines;
(6) conditions for the termination of a contract; and
(7) responsibility for violation of the labor contract.
Apart from the required clauses specified in the preceding paragraph, other
contents in a labor contract may be agreed upon through consultation between
the parties involved.

Article 20

The term of a labor contract shall be divided into fixed term, flexible term or
taking the completion of a specific amount of work as a term.
In cases where a laborer has worked continuously in the same employing unit
for ten years or more and the parties involved agree to extend the term of the
labor contract, a labor contract with a flexible term shall be concluded
between them if so requested by the laborer.

Article 21

A probation period may be agreed upon in a labor contract. The longest
probation period shall not exceed six months.

Article 22

The parties involved in a labor contract may reach an agreement in their
labor contract on matters concerning keeping the commercial secrets of the
employing unit.

Article 23

A labor contract shall terminate upon the expiration of its term or the
emergence of the conditions for the termination of the labor contract as
agreed upon by the parties involved.
Article 24 A labor contract may be revoked upon agreement reached between the
parties involved through consultation.
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Article 25 The employing unit may revoke the labor contract with a laborer in any of
the following circumstances:
(1) the laborer has proven to be not up to the requirements for
recruitment during the probation period;
(2) the laborer has seriously violated labor discipline or the rules and
regulations of the employing unit;
(3) the laborer has caused great losses to the employing unit due to
serious dereliction of duty or engagement in malpractice for selfish
ends; and
(4) the laborer is to be investigated for criminal liability in accordance
with the law.
Article 26 In any of the following circumstances, the employing unit may revoke a labor
contract, but written notification shall be given to the laborer 30 days in
advance:
(1) a laborer is unable to take up his original work or any new work
arranged by the employing unit after the completion of his medical
treatment for illness or injury not suffered at work;
(2) a laborer is unqualified for his work and remains unqualified even
after receiving training or reassignment to another work post; and
(3) no agreement on modification of the labor contract can be reached
through consultation by the parties involved when the objective
conditions 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.
Article 27 During periods of statutory consolidation when the employing unit comes to
the brink of bankruptcy or encounters severe difficulties in production and
management, if reduction of its personnel becomes genuinely necessary, the
unit may make such reduction after it has explained the situation to the trade
union or all of its staff and workers 30 days in advance, solicited opinions
from them and reported to the labor administrative department.
Where the employing unit is to recruit personnel six months after the
personnel reduction effected according to the stipulations of this Article, the
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reduced personnel shall have priority in re-employment.
Article 28 The employing unit shall make economic compensations in accordance with
the relevant provisions of the State if it revokes its labor contracts according
to the stipulations in Articles 24, 26 and 27 of this Law.
Article 29 The employing unit shall not revoke its labor contract with a laborer in accordance
with the stipulations in Article 26 and Article 27 of this Law in any of
the following circumstances:
(1) the laborer has been confirmed to have totally or partially lost the
ability to work due to occupational diseases or injuries suffered at
work;
(2) the laborer has been receiving medical treatment for diseases or
injuries within the prescribed period of time;
(3) the laborer is a female staff member or worker during pregnant,
puerperal, or breast-feeding period; or
(4) other circumstances stipulated by laws, administrative rules and
regulations.
Article 30 The trade union of an employing unit shall have the right to air its opinions if
it regards as inappropriate the revocation of a labor contract by the unit. If
the employing unit violates laws, rules and regulations or labor contracts, the
trade union shall have the right to request for reconsideration. Where the
laborer applies for arbitration or brings in a lawsuit, the trade union shall
render him support and assistance in accordance with the law.
Article 31 A laborer who intends to revoke his labor contract shall give a written notice
to the employing unit 30 days in advance.
Article 32 A laborer may notify at any time the employing unit of his decision to revoke
the labor contract in any of the following circumstances:
(1) within the probation period;
(2) where the employing unit forces the laborer to work by resorting to
violence, intimidation or illegal restriction of personal freedom; or
(3) failure on the part of the employing unit to pay labor remuneration or
to provide working conditions as agreed upon in the labor contract.
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Article 33 The staff and workers of an enterprise as one party may conclude a collective
contract with the enterprise on matters relating to labor remuneration,
working hours, rest and vacations, occupational safety and health, and insurance
and welfare. The draft collective contract shall be submitted to the
congress of the staff and workers or to all the staff and workers for discussion
and adoption.
A collective contract shall be concluded by the trade union on behalf of the
staff and workers with the enterprise; in an enterprise where the trade union
has not jet been set up, such contract shall be also concluded by the
representatives elected by the staff and workers of the enterprise.
Article 34 A collective contract shall be submitted to the labor administrative department
after its execution. The collective contract shall go into effect automatically if
no objections are raised by the labor administrative department within 15 days
of the date of the receipt of a copy of the contract.
Article 35 Collective contracts concluded in accordance with the law shall have binding
force on both the enterprise and all of its staff and workers. The standards on
working conditions and labor payments agreed upon in labor contracts
concluded between individual laborers and the enterprise shall not be lower
than those as stipulated in collective contracts.
Chapter IV
Working Hours, Rest and Vacations
Article 36 The State shall practice 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 the average.
Article 37 In case of laborers working on the basis of piecework, the employing unit
shall rationally fix quotas of work and standards on piecework remuneration
in accordance with the working hour system stipulated in Article 36 of this
Law.
Article 38 The employing unit shall guarantee that its staff and workers have at least one
day off in a week.
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Article 39 Where an enterprise can not follow the stipulations in Article 36 and 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 employing unit 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 Days and
(5) other holidays stipulated by laws, rules and regulations.
Article 41 The employing unit 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 called for due to special reasons, the extended hours shall
not exceed three hours a day under the condition that the health of laborers is
guaranteed. However, the total extension in a month shall not exceed thirtysix
hours.
Article 42 The extension of working hours shall not be subject to restriction of the
provisions of Article 41 of this Law under any off the following
circumstances:
(1) where emergency measures are necessary in the event of natural
disaster, accident or other reason that threatens the life and health of
laborers and the safety of the property;
(2) where prompt rush repair is needed in the event of breakdown of
production equipment, transportation lines or public facilities that
affects production and public interests; and
(3) other circumstances as stipulated by laws, administrative rules and
regulations.
Article 43 The employing unit shall not extend the working hours of laborers in
violation of the provisions of this Law.
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Article 44 The employing unit shall, according to the following standards, pay laborers
remuneration higher than those for normal working hours under any of the
following circumstances:
(1) no less than 150 per cent of the normal wages if the extension of
working hours is arranged;
(2) no less than 200 per cent of the normal wages if the extended hours
are arranged on days of rest and no deferred rest can be taken; and
(3) no less than 300 per cent of the normal wages if the extended hours
are arranged on statutory holidays.
Article 45 The State shall practice a system of annual vacationwith pay.
Laborers who have worked continuously for one year or more shall be
entitled to annual vacation with pay. Concrete measures shall be formulated
by the State Council.
Chapter V
Wages
Article 46 The distribution of wages shall follow the principle 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 control over the total payroll.
Article 47 The employing unit shall independently determine its form of wage
distribution and wage level for its own unit according to law and based on the
characteristics of its production and business and economic results.
Article 48 The State shall implement a system of guaranteed minimum wages. Specific
minimum wage standards shall be determined by the People’s Governments
of provinces, autonomous regions or municipalities directly under the Central
Government and reported to the State Council for the record.
Wages paid to laborers by the employing unit shall not be lower than the
local minimum wage standard.
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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 they support;
(2) the average wage level of the society as a whole;
(3) labor productivity;
(4) employment conditions; and
(5) the different levels of economic development between regions.
Article 50 Wages shall be paid monthly to laborers themselves in the form of cash.
Wages paid to laborers shall not be deducted or delayed without justification.
Article 51 The employing unit shall pay wages in accordance with the law to laborers
who observe statutory holidays, take leaves for marriage or funerals, or
participate in social activities in accordance with the law.
Chapter VI
Occupational Safety and Health
Article 52 The employing unit 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 stipulated
by the State.
Occupational safety and health facilities installed in new projects and projects
to be renovated or rebuilt for expansion must be designed, constructed and
put into operation and use at the same time as the main part of the projects.
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Article 54 The employing unit must provide laborers with occupational safety and health
conditions conforming to the provisions of the State and necessary articles of
labor protection, and provide regular health examination or laborers engaged
in work with occupational hazards.
Article 55 Laborers to be engaged in specialized operations must receive specialized
training and acquire qualifications for such special operations.
Article 56 Laborers must strictly abide by the rules of safe operation in the process of
their work.
Laborers shall have the right to refuse to operate if the management personnel
of the employing unit command the operation in violation of rules and
regulations or force laborers to run risks in operation; laborers shall have the
right to criticize, report or file charges against acts endangering the safety of
their life or health.
Article 57 The State shall establish a system for the statistics, reports and dispositions of
accidents of injuries and deaths, and cases of occupational diseases. The labor
administrative departments and other relevant departments of the People’s
Governments at or above the county level and the employing unit shall,
according to law, compile statistics, report and dispose of accidents of injuries
and deaths that occurred in the process of their work, and cases of
occupational diseases.
Chapter VII
Special Protection for Female and Juvenile Workers
Article 58 The State shall provide female workers and juvenile workers with special
protection.
"Juvenile workers" herein refers to laborers between the ages of 16 and 18.
Article 59 It is prohibited to arrange female workers to work in mine pits, engage in
work with Grade N physical labor intensity as stipulated by the State, or
other work which female workers should avoid.
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Article 60 Female workers during their menstrual periods shall not be assigned to
engage in work high above the ground, under low temperatures, or in cold
water, or to work at Grade III physical labor intensity as stipulated by the
State.
Article 61 During pregnancy, female workers shall not be assigned to engage in work
with Grade III physical labor intensity as stipulated by the State, nor to do
other work that they should avoid in pregnancy. Female workers seven
months pregnant or more shall not be assigned to extend their working hours
or to work night shifts.
Article 62 After childbirth, female workers shall be entitled to no less than ninety days
of maternity leaves with pay.
Article 63 Female workers during the period of breast-feeding babies who are less than
one year old shall not be assigned to engage in work with Grade III physical
labor intensity as stipulated by the State, nor to do other labor that they
should avoid during their breast-feeding period, nor to extend their working
hours or to work night shifts.
Article 64 No juvenile workers shall be arranged to engage in work down the pit of
mines, work that is poisonous or harmful, work with Grade IV physical labor
intensity as stipulated by the State, or other work that they should avoid.
Article 65 The employing unit shall provide regular physical examinations of juvenile
workers.
Chapter VIII
Vocational Training
Article 66 The State shall take various measures through various channels to expand
vocational training undertakings in order to develop professional skills of
laborers, improve the quality thereof, and raise their employment capability
and work ability.
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Article 67 People’s Governments at various levels shall incorporate the development of
vocational training in the plans of social and economic development,
encourage and support all enterprises, institutional organizations, societies and
individuals, where conditions permit, to sponsor all kinds of vocational
training.
Article 68 The employing unit shall establish a system for vocational training, raise and
use funds for vocational training in accordance with the provisions of the
State, and provide laborers with vocational training in a planned way and
with reference to actual unit conditions.
Laborers to be engaged in technical work must receive pre-job training
before taking up their posts.
Article 69 The State shall determine occupational classification, set up professional skill
standards for the occupations classified, and practice a system of vocational
qualification certificates. Examination and verification organizations
authorized by the government are in charge of the examination and
verification 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 compensations under such circumstances as old age,
illness, work-related in jury, unemployment and child bearing.
Article 71 The level of social insurance shall be in proportion to the level of social and
economic development and the social affordability.
Article 72 The sources of social insurance funds shall be determined according to the
categories of insurance, and an overall pooling of insurance funds from the
society shall be introduced step by step. The employing unit and laborers
must participate in social insurance and pay social insurance premiums in
accordance with the law.
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Article 73 Laborers shall, in accordance with the law, enjoy social insurance benefits
under the following circumstances:
(1) retirement;
(2) illness or in jury;
(3) disability caused by work-related injury or occupational disease;
(4) unemployment; and
(5) child-bearing.
The survivors of the insured laborers shall be entitled to subsidies for
survivors in accordance with the law.
The conditions and standards for laborers to enjoy social insurance benefits
shall be stipulated 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 The agencies in charge of social insurance funds shall collect, expend,
manage and operate the funds in accordance with the stipulations of laws, and
assume the responsibility to maintain and raise the value of these funds.
The supervisory organizations of social insurance funds shall exercise
supervision over the revenue and expenditure, management and operation of
social insurance funds in accordance with the stipulations of laws.
The establishment and function of the agencies in charge of social insurance
funds and the supervisory organizations of social insurance funds shall be
stipulated by laws.
No organization or individual shall be allowed to misappropriate social
insurance funds.
Article 75 The State shall encourage the employing unit to set up supplementary
insurance for laborers according to its practical situations.
The State shall advocate that laborers practice individual insurance in form of
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saving account.
Article 76 The State shall develop social welfare undertakings, construct public welfare
facilities, and provide laborers with conditions for taking rest, recuperation
and rehabilitation.
The employing unit shall create conditions in order to improve collective
welfare and raise the welfare benefits of laborers.
Chapter X
Labor Disputes
Article 77 Where a labor dispute between the employing unit and its laborers takes
place, the parties concerned may apply for mediation or arbitration or take
legal proceedings according to law, or may seek for a settlement through
consultation. The principle of mediation shall apply to the procedures of
arbitration and lawsuit.
Article 78 The settlement of a labor dispute shall follow the principles of legality,
fairness and promptness in order to safeguard in accordance with the law the
legitimate rights and interests of the parties involved.
Article 79 Where a labor dispute takes place, the parties involved may apply to the labor
dispute mediation committee of their unit for mediation; if the mediation fails
and one of the parties requests for arbitration, that party may apply to the
labor dispute arbitration committee for arbitration. Either party may also
directly 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 bring the case to a people's court.
Article 80 A labor dispute mediation committee may be established inside the employing
unit. The committee shall be composed of representatives of the staff and
workers, representatives of the employing unit, and representatives of the
trade union. The chairman of 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.
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Article 81 A labor dispute arbitration committee shall be composed of representatives of
the labor administrative department, representatives from the trade union at
the corresponding level, and representatives of the employing unit. The
chairman of the committee shall be held by a representative of the labor
administrative department.
Article 82 The party that requests for arbitration shall file a written application to a labor
dispute arbitration committee within 60 days starting from the date of the
occurrence of a labor dispute. The arbitration committee may generally make
an 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 Where a party involved in a labor dispute is not satisfied with the
adjudication, the party may bring a lawsuit to a people's court within 15 days
of the date of receiving the 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 Where a dispute arises from the conclusion of a collective contract and no
settlement can be reached through consultation between the parties concerned,
the labor administrative department of the local People’s Government may
organize the relevant departments to handle the case in coordination.
Where 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 is not satisfied with the adjudication of arbitration
may bring a lawsuit to a people's court within 15 days of the date of
receiving the adjudication.
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Chapter XI

Supervision andb 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 on labor by the employing unit,
and have the power to stop any acts that run counter to laws, rules and
regulations on labor and order the rectification thereof.
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 the employing units to conduct investigations of
the implementation of laws, rules and regulations on labor, examine necessary
data and inspect labor sites.
The inspectors from the labor administrative departments of People’s
Governments at or above the county level must show their certification while
performing public duties, impartially enforce laws, and abide by relevant
stipulations.
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 on labor by the employing
units.
Article 88 Trade unions at various levels shall, in accordance with the law, safeguard
the legitimate rights and interests of laborers, and supervise the
implementation of laws, rules and regulations on labor by the employing
units.
Any organizations or individuals shall have the right to expose and accuse
any acts in violation of laws, rules and regulations on labor.
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Chapter XII
Legal Responsibility
Article 89 Where the rules and regulations on labor formulated by the employing unit
run counter to the provisions of laws, rules and regulations, the labor
administrative department shall issue a warning to the unit and order it to
make corrections. Where any harm has been caused to laborers, the unit shall
be liable for compensation.
Article 90 Where the employing unit extends working hours of laborers in violation of
the stipulations of this Law, the labor administrative department shall issue it a
warning, order it to make corrections, and may impose a fine.
Article 91 Where an employing unit infringes in any of the following ways the legitimate
rights and interests of laborers, the labor administrative department shall
order it to pay laborers remuneration or to make up for economic losses, and
may also order it to pay compensation:
(1) the unit deducts wages or delays in paying wages to laborers without
reason;
(2) the unit refuses to pay laborers remuneration for the extended
working hours;
(3) the unit pays laborers wages below the local minimum wage standard;
or
(4) the unit fails to provide laborers with economic compensation in
accordance with the provisions of this Law after revocation of labor
contracts.
Article 92 Where the occupational safety facilities and health conditions of an employing
unit do not comply with the provisions of the State or the unit fails to provide
laborers with necessary labor protection articles or labor protection facilities,
the labor administrative department or other relevant departments shall order
it to make corrections, and may impose a fine. If circumstances are serious,
the above-mentioned departments shall apply to a People’s Government at or
above the county level for a decision to order the unit to stop production for
consolidation. If the unit fails to take measures against potential accident
which later leads to the occurrence of a serious accident and the losses of
laborers' lives and properties, criminal responsibilities shall be investigated a-
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gainst the persons in charge mutatis mutandis the stipulations of Article 187
of the Criminal Law.
Article 93 Where an employing unit forces laborers to operate at risk in violation of
rules and regulations, causing thus major accidents involving injuries, deaths,
and other serious consequences, the criminal liability of the person in charge
shall be investigated according to law.
Article 94 Where an employing unit illegally recruits juveniles under the age of 16, the
labor administrative department shall order it to make corrections, and impose
a fine. If circumstances are severe, the administrative department for industry
and commerce shall revoke its business license.
Article 95 Where an employing unit encroaches upon the legitimate rights and interests
of female and juvenile workers in violation of the stipulations of this Law on
their protection, the labor administrative department shall order it to make
corrections, and impose a fine. If harm to female and juvenile workers has
been caused, the unit shall assume the responsibility for compensation.
Article 96 Where an employing unit commits one of the following acts, the person in
charge shall be taken by a public security organ into custody for 15 days or
less, fined, or given a warning; and criminal liability of the person in charge
shall be investigated according to law if the act constitutes one of the
following crimes:
(1) laborers have been forced to work by recourse to violence,
intimidation or illegal restriction of personal freedom; or
(2) laborers have been humiliated, dealt corporal punishment, beaten,
illegally searched or detained.
Article 97 The employing unit shall bear the responsibility for compensation if the
execution of any invalid contracts is attributed to the unit and has caused
damages to laborers.
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Article 98 Employing units revoking labor contracts or purposely delaying the execution
of labor contracts in violation of the conditions specified in this Law shall be
ordered by the labor administrative department to make corrections, and shall
bear the responsibility for compensation if damage has been caused to
laborers.
Article 99 Employing units recruiting laborers whose labor contracts have not yet been
revoked shall, according to law, assume joint responsibility for compensation
if economic losses have been caused to the original employing unit of the
laborers.
Article 100 Employing units failing to pay social insurance premiums without reason shall
be ordered by the labor administrative department to pay within a fixed
period of time. If the unit still fails to make the payment beyond the time
limit, an additional arrears payment may be demanded.
Article 101 Where an employing unit unjustifiably obstructs the labor administrative
department and other relevant departments as well as 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 unit. If a crime is constituted, the criminal liability
of the person in charge shall be investigated according to law.
Article 102 Laborers who revoke labor contracts in violation of the conditions specified
in this Law or violate confidentiality terms agreed upon in the labor contracts
and thus have caused economic losses to the employing unit shall be liable for
compensation in accordance with the law.
Article 103 The functionaries of the labor administrative department or other relevant departments
who abuse their functions and powers, neglect their duties, and
engage in malpractice for selfish ends shall be investigated for criminal
responsibilities according to law if a crime is constituted, or shall be given an
administrative sanction if the offenses do not yet constitute a crime.
Article 104 The functionaries of the State or the agencies in charge of social insurance
funds who misappropriate the social insurance funds, shall be investigated for
criminal liability according to law if a crime is constituted.
Article 105 Where other laws or administrative rules and regulations have already
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specified punishments for the encroachment of the legitimate rights and
interests of laborers that also violate the stipulations of this Law, punishments
shall be given in accordance with the stipulations of those laws or
administrative rules and regulations.

Chapter XIII

Supplementary Provisions
Article 106 People’s Governments of provinces, autonomous regions and municipalities
directly under the Central Government shall work out the implementation
measures for the labor contract system according to this Law and with
reference to local conditions, and report the measures to the State Council for
the record.
Article 107 This Law shall become effective as of January 1, 1995.