Report Shows More Workers Under the Protection of Labor Contracts in China

The proportion of Chinese employees who have signed labor contracts with their employers has increased since the implementation of the Labor Contract Law in 2008, China's top legislator said on October 24.

About 97 percent of workers in "sizable enterprises" had signed contracts with their employers by the end of 2010, an increase of 6.3 percent compared to 2007, Hua Jianmin, vice chairman of the Standing Committee of the National People's Congress (NPC), said in a report to the top legislature on the implementation of the law.

"Sizable enterprises" is a statistical term in China that refers to all state enterprises or private firms with an annual turnover of 2 million yuan if they are manufacturers or 5 million yuan if they are in trade.

As more workers signed contracts with their employers, the population of employees covered by social insurance also notably increased, according to the report.

By the end of 2010, the number of urban employees who enjoy pension provisions increased by 27.7 percent compared to 2007, and those covered by medical insurance rose by 31.7 percent, said the report.

The report said the contract rate is still low in labor-intensive small- and medium-sized enterprises and private companies, with some signed contracts not in accordance with laws and regulations.

In addition, law enforcement workers dealing with labor protection are seriously understaffed, with each official dealing with more than 1,700 enterprises or 20,000 employees, Hua said.

Source: Xinhua