Law of China on Mediation and Arbitration of Labor DisputesⅡ

Chapter III: Arbitration

　　Section 1 General Provisions

　　Article 17 Labor dispute arbitration commissions shall be set up pursuant to the principles of coordinated planning, rational layout and meeting actual needs. People's governments of provinces and autonomous regions may decide to set up a labor dispute arbitration commission at the municipal and county levels; people's governments of municipalities directly under the central government may decide to set up a labor dispute arbitration commission at district and county levels; and people's governments of cities specifically designated in the state plan and cities with districts may also establish one or several labor dispute arbitration commissions. Labor dispute arbitration commissions are not set up according to administrative areas level by level.

　　Article 18 The labor administrative department under the State Council shall formulate arbitration rules in accordance with the provisions hereof. The labor administrative department of people's governments of provinces, autonomous regions and municipalities directly under the central government shall provide guidance to labor dispute arbitration work within the administrative area.

　　Article 19 Labor dispute arbitration commissions shall comprise the representative of the labor administrative department, labor union representative and enterprise representative. The composition of the labor dispute arbitration commissions shall be an odd number.

　　Labor dispute arbitration commissions shall perform the following functions and duties in accordance with the law:

　　1. appointment and dismissal of full-time or part-time arbitrators;

　　2. acceptance of labor dispute cases;

　　3. discussion of major or complicated labor dispute cases; and

　　4. supervision of arbitration activities.

　　Labor dispute arbitration commissions shall set up offices to handle the day-to-day work of the labor dispute arbitration commissions.

　　Article 20 Labor dispute arbitration commissions shall have an arbitrator register.

　　Arbitrators shall be impartial and fulfill any of the following requirements:

　　1. having served as an adjudicator;

　　2. engaging in legal research or teaching with a designation of middle level or above;

　　3. having legal knowledge and engaging in human resources management, labor union work or other professional work for five full years; or

　　4. having legal practice for three full years.

　　Article 21 Labor dispute arbitration commissions shall be responsible for the labor disputes occurred in the district under their jurisdiction.

　　Labor disputes shall be handled by the labor dispute arbitration commission at the place where the labor contract is performed or at the place where the employing unit locates. Where both parties apply for arbitration to the labor dispute arbitration commission at the place where the labor contract is performed or the place where the employing unit locates, the labor dispute shall fall within the jurisdiction of the labor dispute arbitration commission at the place where the labor contract is performed.

　　Article 22 The laborer in a labor dispute and the employing unit are the parties to labor dispute cases.

　　Where there is a labor dispute between a labor deployment unit and a laborer, the labor deployment unit and the employing unit are the joint parties.

　　Article 23 The third party that has an interest in the result of the handling of a labor dispute case may apply for participating in arbitration activities or be notified to participate in arbitration activities by the labor dispute arbitration commission.

　　Article 24 The parties may appoint an agent to participate in arbitration activities. To appoint an agent to participate in arbitration activities, a power of attorney signed or sealed by the appointer shall be submitted to the labor dispute arbitration commission. The power of attorney shall set out the appointment matter and the authority.

　　Article 25 A laborer that has lost full or partial civil capability shall participate in arbitration activities by his legal representative. Where there is no legal representative, an agent shall be designated by the labor dispute arbitration commission. Where the laborer has died, his close relative or agent shall participate in arbitration activities.

　　Article 26 The arbitration of labor disputes shall be conducted openly, unless the parties agree not to conduct openly or state secrets, trade secrets or personal privacy is involved.

　　Section 2 Application and Acceptance

　　Article 27 The time limit for application for arbitration in labor disputes is one year. The validity of arbitration shall be calculated from the date the parties know or shall have known the infringement of their rights.

　　The validity of arbitration as prescribed in the previous paragraph shall be interrupted where either party claims its rights against the other party; or the relevant department requests for the right of relief, or the other party agrees to perform its obligations. The validity of arbitration shall be calculated again from the time of interruption.

　　Where the parties cannot apply for arbitration within the validity of arbitration as prescribed in Paragraph One of this article due to force majeure or other proper reasons, the validity of arbitration is suspended. The validity of arbitration shall resume following the non-existence of the reason for suspension.

　　Where a dispute arises within the subsistence of labor relations due to labor remunerations in arrears, the laborer that applies for arbitration shall not be restricted by the validity of arbitration prescribed in Paragraph One of this article. However, where the labor relations are terminated, the application for arbitration shall be submitted within one year of the termination of the labor relations.

　　Article 28 The applicant that applies for arbitration shall submit a written arbitration application and submit duplicates in accordance with the number of the respondents.

　　The arbitration application shall set out the following matters: