Law of China on Mediation and Arbitration of Labor DisputesⅠ

　　Chapter I: General Provisions

　　Article 1 The Law is formulated in order to fairly and timely resolve labor disputes, protect the lawful rights and interests of the parties and promote harmonious and stable labor relations.

　　Article 2 The Law shall apply to the following labor disputes between employing units and laborers within the territory of the People's Republic of China:

　　1. disputes arising from the confirmation of labor relations;

　　2. disputes arising from the conclusion, performance, alteration and termination of labor contracts;

　　3. disputes arising from name removal, dismissal, resignation or vacation of office;

　　4. disputes arising from working hours, rest days and leave days, social insurance, fringe benefits, training and labor protection;

　　5. disputes arising from labor remunerations, work injury medical expenses, economic compensation or damages; or

　　6. other labor disputes prescribed by laws and regulations.

　　Article 3 The resolution of labor disputes shall be based on facts and follow the principles of lawfulness, fairness, timeliness and mediation-oriented to protect the lawful rights and interests of the parties.

　　Article 4 Where a labor dispute arises, a laborer may have a consultation with the employing unit or request the labor union or a third party to have a consultation with the employing unit in order to reach a settlement agreement.

　　Article 5 Where a labor dispute arises, the parties are not willing to have a consultation, the consultation fails or the settlement agreement is reached but not performed, an application for mediation may be made to an mediation institute. Where the parties are not willing to mediate, the mediation fails or the mediation agreement is reached but not performed, an application for arbitration may be made to the labor dispute arbitration commission. Where there is objection to the arbitral award, litigation may be initiated to a people's court unless otherwise specified herein.

　　Article 6 Where a labor dispute arises, the parties have the responsibility to give evidence for their own claim. Where the evidence relevant to the dispute matter is handled and managed by the employing unit, the employing unit shall give such evidence. Where the employing unit does not give evidence, it shall assume any unfavorable consequences.

　　Article 7 Where the party in a labor dispute consists of more than 10 laborers, and they have a joint request, they may recommend a representative to participate in mediation, arbitration or litigation activities.

　　Article 8 The labor administrative department of people's governments at the county level or above together with labor unions and enterprise representatives shall establish a labor relation tripartite mechanism to jointly study and resolve major issues of labor disputes.

　　Article 9 Where an employing unit violates state provisions and labor remunerations are in arrears or not paid in full, or work injury medical expenses, economic compensation or damages are in arrears, the laborer may make a complaint to the labor administrative department which shall handle the matter in accordance with the law.

　　Chapter II: Mediation

　　Article 10 Where a labor dispute arises, the parties may apply for mediation to the following mediation institutes:

　　1. Enterprise labor dispute mediation commission;

　　2. Basic-level people's mediation institutes established in accordance with the law;

　　3. Institutes with labor dispute mediation function established in towns and villages and districts.

　　The enterprise labor dispute mediation commission shall comprise employee representatives and enterprise representatives. Employee representatives shall be labor union members or recommended by all employees, and enterprise representatives are designated by the responsible person of enterprise. The officer of the enterprise labor dispute mediation commission shall be a labor union member or a person recommended by both parties.

　　Article 11 The mediators of labor dispute mediation institutes shall be citizens that are impartial, connected with the mass and passionate about mediation work, and have certain legal knowledge, policy level and cultural level.

　　Article 12 The parties that apply for labor dispute mediation may submit an application in writing or orally. Where it is an oral application, the mediation institute shall record the basic particulars of the applicant, the matter in dispute that requires mediation, the reason and time on the spot.

　　Article 13 To mediate labor disputes, the facts and reasons of both parties shall be listened and mediation is conducted with patience to assist in reaching an agreement.

　　Article 14 Where an agreement is reached after mediation, a mediation agreement shall be prepared.

　　The mediation agreement shall be signed or sealed by both parties, and signed by the mediator as well as sealed by the mediation institute to take effect. It shall be binding on both parties and both parties shall perform the agreement.

　　The parties may apply for arbitration in accordance with the law if no mediation agreement is reached within 15 days of the receipt of the mediation application by the labor dispute mediation institute.

　　Article 15 Where the mediation agreement is reached and either party that fails to perform the mediation agreement within the time limit prescribed in the agreement, the other party may apply for arbitration in accordance with the law.

　　Article 16 Where the mediation agreement is reached in respect of the payment of labor remunerations, work injury medical expenses, economic compensation or damages in arrears and the employing unit fails to perform the agreement within the time limit prescribed in the agreement, the laborer may apply to the people's court for a payment order in accordance with the law on the strength of the mediation agreement. The people's court shall issue the payment order in accordance with the law.