China warns companies evading new labour law

Chinese companies are trying to evade a new law that will make it harder to sack employees, prompting a government warning that they may have to pay "a heavy price," state media said Friday. The Labour Contract Law, to take effect early next year, offers staff with more than 10 years of service at a company the right to sign a new contract that will make it harder to fire them, the China Daily reported. In an apparent bid to evade the law, major telecom equipment maker Huawei recently ordered 7,000 employees who had been with the company for more than eight years to quit and then reapply, according to the paper.

China warns companies evading new labour law chinadaily.com.cn Fri, Nov 9, 2007