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OVERVIEW OF CHINA LABOR LAW SYSTEM
Armstrong Chen1
1Beijing Dacheng Law Offices, LLP(Shanghai), Shanghai, China

PAPER: 219/Laws/Regular (Oral) OS
SCHEDULED: 16:05/Tue. 18 Nov. 2025/Lotus

ABSTRACT:

This paper intends to provide foreign conference participants with a systematic overview of China's labor and employment - related laws and regulations. Starting with the recent labor incident at BYD's Brazilian plant to spotlight labor rights protection, it delves into the legislative background, purpose, and scope of application of China's Labor Law and Labor Contract Law, with an emphasis on key aspects of the Labor Contract Law. It also explains the deferred compensation and performance clawback systems in China's financial sector and outlines the procedures for resolving labor disputes, including negotiation, mediation, arbitration, and litigation, to present the current state and characteristics of China's labor and employment legal framework for international labor law exchange.

In China, despite clear labor laws and regulations, excessive overtime work is prevalent across various industries. According to data from China's National Bureau of Statistics, the average weekly working hours for employed persons in urban units reached 48.5 hours in March 2025, exceeding the statutory standard working hours. The statutory standard in China is 8 hours per day and 40 hours per week, with a monthly overtime cap of 36 hours. However, during peak seasons in the manufacturing and construction industries, weekly working hours often surpass 50 hours. The "996" work schedule prevalent in the technology and internet industry entails working up to 72 hours per week. Although China's Supreme People's Court explicitly ruled the "996" system illegal in 2021, and some large tech companies have made adjustments, excessive overtime persists due to factors such as regulatory enforcement and workplace culture. Against this backdrop, gaining an in-depth understanding of China's labor laws and regulations is of significant importance.