China's New Labor Law Creates Growing Concern

At CSR China, Kevin Jones and Stan Abrams write:

We all saw this coming. Since last year, there have been countless articles and commentaries about China's new employment law, so by now employers should have already implemented new labor regimes without further incident and employees should be quite satisfied. Right?

Not quite. Implementation has been slow, litigation has picked up markedly this year, and China's new Employment Contract Law continues to pose huge problems for employers. The new law has the potential to become a compliance nightmare, with labor costs widely anticipated to increase by 20% for manufacturers, squeezing profit margins further at a time when costs for other economic inputs are rising and preferential tax treatment is being rolled back. According to a study recently released by the American Chamber of Commerce in Shanghai and Booz Allen Hamilton, 20% is also the percentage of foreign invested companies that are planning to move at least some of their operations elsewhere.

To read more:

http://www.chinacsr.com/2008/05/05/2308-year-of-the-rat-brings-a-plague-upon-employers-in-china/

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