On March 9th, in response to growing public debate following the implementation of the "Labor Contract Law," Sun Baoshu, vice director of the Ministry of Human Resources and Social Security, addressed concerns during a press conference at the 11th National People's Congress. He emphasized that the real challenge is not revising the law, but ensuring its effective and sincere implementation.
Sun Baoshu noted that the majority of workers and employees have shown strong support for the law since its introduction, and most enterprises have taken it seriously. However, three main concerns have emerged during the implementation phase. First, some believe that signing open-ended labor contracts will create rigid employment structures. Second, there are worries that the law will significantly increase labor costs, making it difficult for businesses to sustain their operations. Third, some argue that the law may negatively impact the investment environment and job creation.
According to Sun Baoshu, these concerns stem from a lack of comprehensive understanding of the law. He clarified that open-ended labor contracts are not equivalent to "iron rice bowls" or guaranteed lifetime employment. The law actually provides multiple conditions under which employment can be terminated, and compared to the previous "Labor Law," the rules for contract termination have been made more flexible.
Regarding the second concern, Sun explained that the actual cost increase for enterprises is minimal when considering the law’s design. Many companies have failed to fulfill their legal obligations to pay social insurance for employees, and the new law now enforces these requirements clearly. It is neither fair nor sustainable to chase profits by exploiting employees’ rights, as this undermines the interests of law-abiding businesses.
Finally, Sun stressed that implementing the "Labor Contract Law" does not conflict with economic development. On the contrary, a sound legal framework and balanced labor relations can enhance the investment environment and promote job growth. He called for continued efforts to ensure the law is applied fairly and effectively, benefiting both workers and enterprises in the long run.
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