Tuesday March 3, 07:13 AM
Labour-related lawsuits nearly double in China: state media
BEIJING (AFP) - The number of labour-related law suits nearly doubled in China last year as layoffs spiked due to the global economic crisis, while a new employment law also kept the courts busy, state media reported Tuesday.
The number of lawsuits triggered by labour disputes across the country surged by 95 percent in 2008 from 2007, the China Daily said, citing Shen Deyong, vice president of the Supreme People's Court.
Lawsuits nearly tripled in some eastern and southern coastal cities during the period, Shen said according to the report, which did not give actual figures for 2007 or 2008.
Shen said the drastic increase was partly due to companies taking cost-cutting measures in their struggle to pull through the financial crisis, the paper said.
"Many companies fired employees, cut salaries and bonuses, or encouraged staff to take leave without pay to cut costs in face of the economic downturn. That caused many disputes," Shen said.
Official figures showed at least 20 million migrant workers had lost their jobs amid a wave of factory closures in China as foreign demand weakened.
Some companies also cut jobs in response to higher labour costs due to the Labour Contract Law, which took effect from January 1, 2008, providing another reason for rising employment disputes, the paper said.
The law requires employers to offer open-ended contracts to employees who have worked for them for 10 years or more or have completed two fixed-term contracts.
It also mandates companies to make larger contributions to pension and insurance funds, the China Daily said.
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