Then, in 2005, there was a draft version of the Labour Contract Law provided by the CPC, the procedure for making this law was extremely difficult because it not only concerns 80% of the general public who are the employees but also a great issue for all the enterprises, including a number of foreign investment companies in China.
Let me tell you about a story to illustrate the difficulties the government faced when they went to release this law, In 2006, when the second draft was given up for discussion in public, there was a huge boycotting activity, which was held in Shanghai, the economic capital of China, more than two hundred foreign companies attended this activity, including PG, GE and so on, finally they claimed that if the Chinese authorities released the new labour contract they would remove their funds from China, fortunately the decision of the Chinese government of enhancing the protection of its labour force was strong so in June 2007, with a warm welcome from the general public, the Labour Law was finally released, which is another milestone in Chinese legal history.
According to this law, if companies did not sign the contract with the employees, the companies would have to pay double salary to its workers; also if companies did not pay the welfare fund to the workers they could be fined.
There are a lot of regulations like that and hopefully people can enjoy their working life in the near future.
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