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Labor Dispute Resolution in China
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Unlike in general civil or commercial disputes, the parties could choose the authority to solve the dispute---arbitration or lawsuit, either party to a labor dispute has to apply for a labor arbitration first instead of going to the court directly. The reason for the initial arbitration phase is to try to solve the dispute without getting the court involved in order to avoid wasting judicial resources. However, since the cost for labor arbitration and lawsuit is low--either party has to pay 10 RMB to file for it—sometimes, one party will appeal until the last phase just because they want to hold off executing the result. A total waste of judicial resource of the other party’s time.
Since 2008 when the Labor contract law and relevant arbitration laws came into effect, the amount of labor dispute cases has increasingly risen. Two main reasons for which are as follows:1. Generally, younger generations have more right-protection awareness and are apt to using judicial resources to settle disputes.2.The fee is negligible. Unlike civil or commercial disputes, the majority of the burden of proof is borne by the employer, so most employees can do it by themselves as long as they know the related provisions. However, for an employer, the process will not be simple. Most of the time, they have to hire a lawyer unless their HR staff has enough experience to handle the process.Though most labor disputes filed by employees are to defend their rights, some may be filed by disgruntled employees hoping to get extra compensation. So the employer has to be very careful when dealing with labor disputes. The reason “employee did something wrong” is not enough to justify the firing of the employee, the employer has to provide enough evidence to prove that:1. The “employee did something wrong” is an objective conclusion instead of a subjective judgment;2. The employer has done their job in line with the laws, such as warn or notify the employee.
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