In principle, the Labor Union Law requires that all enterprises in China with 25 or more employees should establish a labor union. In practice, however, the enforcement of this requirement is haphazard and many large companies do not have labor unions. We are Guangzhou labor lawyer, and you are welcome to consult us on Guangzhou employment law.
Collective contracts may be concluded between an enterprise and its labor union or an elected employee representative. Collective contracts must address thefollowing issues:
• Labor remuneration
• Working hours
• Rest and holiday
• Insurance and welfare
• Labor safety and hygiene
• Term of contract
• Procedures for amendment and termination of the collective contract
• Rights and obligations of both parties in the performance of the collective contract
• Resolution of disputes
• Breach of the collective contract
Collective contracts are binding for all employees of a company. Accordingly, individual employment contracts cannot include standards that are lower than those set forth in the collective contracts. However, it is possible to agree in an individual employment contract on terms that are more favorable to the employee.