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Instituting a Labor Contract System

China started to try out a labor contract system in the mid-1980s, and energetically promoted it in the 1990s. As a result, the labor contract system is now universally implemented in urban enterprises of every description. Chinese laws stipulate that employers and employees shall establish labor relations in accordance with the law, and conclude written labor contracts, with or without fixed periods, or with a period to complete the prescribed work; during the conclusion of the labor contract, the two parties to the contract must abide by the principles of equality, voluntariness and reaching unanimity through consultation. The labor contract system clarifies the rights and obligations of the employers and employees, and safeguards the employees' right to select jobs and the employers' right to select employees.

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