LABOR PRACTICE

LABOR PRACTICE

Labor disputes are among the most common types of disputes today. The number of labor disputes being accepted and resolved by the Courts has been increasing steadily. Labor disputes often involve issues related to wages, social insurance, unlawful unilateral termination of labor contracts, and other employment-related matters.

Let us join CELIGAL in reviewing several key legal provisions on labor disputes.

What Is a Labor Dispute under the Law?

Pursuant to Clause 1, Article 179 of the 2019 Labor Code, a labor dispute refers to disputes concerning rights, obligations, and interests arising between the parties in the process of establishing, performing, or terminating an employment relationship; disputes between employee representative organizations; and disputes arising from relationships directly related to employment relationships.

Classification of Labor Disputes

Current labor laws provide specific classifications of labor disputes. According to Clause 1, Article 179 of the 2019 Labor Code, there are two types of labor disputes: individual labor disputes and collective labor disputes, including:

Individual Labor Disputes

Individual labor disputes are disputes between:

• Employees and employers;
• Employees and enterprises or organizations sending employees to work overseas under contracts;
• Leased employees and labor leasing employers.

Collective Labor Disputes

Collective labor disputes include:

• Collective labor disputes over rights between one or more employee representative organizations and employers or one or more employer organizations (Clause 2, Article 179);
• Collective labor disputes over interests between one or more employee representative organizations and employers or one or more employer organizations (Clause 3, Article 179).

Principles for Resolving Labor Disputes

When resolving labor disputes, competent authorities and the disputing parties must comply with the following principles:

• Respecting the right to self-determination through negotiation throughout the dispute resolution process;
• Encouraging dispute resolution through mediation and arbitration based on respect for the lawful rights and interests of the parties;
• Ensuring openness, transparency, objectivity, timeliness, efficiency, and compliance with the law;
• Ensuring the participation of representatives of the parties;
• Labor disputes shall be resolved only upon request or proposal by competent agencies, organizations, or individuals and with the consent of the disputing parties.

Jurisdiction over the Resolution of Labor Disputes

For individual labor disputes and collective labor disputes over rights, the competent authorities, organizations, and individuals authorized to resolve such disputes are specifically prescribed in Articles 187 and 191 of the 2019 Labor Code, including:

• Labor Mediators;
• Labor Arbitration Councils;
• People’s Courts.

For collective labor disputes over interests, the competent authorities, organizations, and individuals authorized to resolve such disputes are prescribed in Clause 1, Article 195 of the 2019 Labor Code, including:

• Labor Mediators;
• Labor Arbitration Councils.

Accordingly, there is a clear distinction in jurisdiction over labor disputes. Under the law, People’s Courts do not have jurisdiction to resolve collective labor disputes over interests.

Which Labor Disputes Must Undergo Mediation Procedures?

Pursuant to Clause 1, Article 188 of the 2019 Labor Code, the following individual labor disputes are not required to undergo mediation procedures:

• Disputes concerning dismissal or unlawful unilateral termination of labor contracts;
• Disputes concerning compensation for damages or allowances upon termination of labor contracts;
• Disputes relating to social insurance, health insurance, unemployment insurance, occupational accident insurance, and occupational disease insurance;
• Disputes concerning compensation for damages between employees and enterprises or organizations sending employees to work overseas under contracts;
• Disputes between leased employees and labor leasing employers.

According to Clause 2, Article 191, collective labor disputes over rights must be mediated by a labor mediator before being submitted to the Labor Arbitration Council or the Court for resolution.

In addition, Clause 2, Article 195 provides that collective labor disputes over interests must be resolved through mediation conducted by a labor mediator before being submitted to the Labor Arbitration Council or before initiating strike procedures.

Therefore, for certain labor disputes, mediation is a mandatory prerequisite before requesting resolution by the Court or the Labor Arbitration Council.

CELIGAL’s Labor Dispute Resolution Advisory Services

With a team of experienced lawyers and legal professionals, CELIGAL consistently provides clients with professional advisory services in the labor and employment field, including:

• Providing in-depth legal advice on statutory rights and lawful interests of employees, employers, and related parties in the event of labor disputes;
• Advising on the procedures and processes for resolving labor disputes before the People’s Courts and Labor Arbitration Councils;
• Representing clients in dispute resolution proceedings before competent authorities;
• Preparing complete dossiers for initiating labor lawsuits;
• Advising on dispute resolution related to disciplinary actions in the form of dismissal or unlawful unilateral termination of labor contracts;
• Advising on dispute resolution relating to social insurance, health insurance, unemployment insurance, occupational accident insurance, and occupational disease insurance;
• Advising on procedures for resolving other labor-related disputes.