On the Value Reconstruction and System Innovation of the Labor Contract Law

Since its very release in March 2006, the opinion-soliciting draft of the Labor Contract Law has sparked considerable controversy. Indeed, the whole process of its consideration, promulgation, implementation and amendment has been accompanied by complex questioning and a diversity of views. This has to some extent reduced appreciation of the value of the Labor Contract Law itself. In the economy and society, rational legal construction can minimize the damage done by the failure of private negotiations. The Labor Contract Law is dedicated to changing the action space of workers and enterprises in order to promote efficiency in production and equity in distribution. With the aim of constructing and developing harmonious and stable labor relations, the law seeks to encourage workers and enterprises to forge communities of shared interests, shared undertakings, a common destiny and a joint mission; it is here that the true value of the law lies. In terms of institutional design, in building a system that categorizes workplace employment, the Labor Contract Law makes a breakthrough in workplace labor relations management and sets up an innovative labor relations management system with Chinese characteristics. Faced with the new normal in labor relations, we should make further progress in strengthening democratic enterprise management, optimizing the developmental environment of business, etc.