| LAW OF THE PEOPLE'S REPUBLIC OF CHINA ON EMPLOYMENT CONTRACTS (LAW ON EMPLOYMENT CONTRACTS in the following passages), which was passed by majority at the 28th Session of the Standing Committee of the 10th National People's Congress of the People's Republic of China, has come into force on January 1,2008. Because the promulgation and implementation of LAW ON EMPLOYMENT CONTRACTS has aroused wide controversy, REGULATIONS ON THE IMPLEMENTATION OF THE LABOR CONTRACT LAW OF THE PEOPLE'S REPUBLIC OF CHINA (REGULATIONS ON THE IMPLEMENTATION OF THE LABOR CONTRACT LAW in the following passages) was passed at the 25th session of the Standing meeting of the State Council and was implemented on September 18,2008. As the content of promulgation and implementation of LAW ON EMPLOYMENT CONTRACTS, REGULATIONS ON THE IMPLEMENTATION OF THE LABOR CONTRACT LAW is the valid legal explanation and supplement of LAW ON EMPLOYMENT CONTRACTS. LAW ON EMPLOYMENT CONTRACTS is closely related to the rights of common people and its content concerns the vital interests of every laborer and employer. This law adjusted significantly the labor relations and the mode of employment which had been adopted for a lot of years. Because of the wide use and influence of this law, it aroused controversy in the academic circle and business circle, especially in the field of the increase of cost of employment and unemployment. Therefore it is very important for the enterprises to accommodate the management of the labor relations and to make necessary innovations and developments with the background of LAW ON EMPLOYMENT CONTRACTS.Since the Reform and Opening Policy was carried out in our country, the change of the economic system has caused big change of the labor relations, and also caused the alteration of the workers' status and assignment system. The original equalitarianism and communal pot was replaced by a new distribution system which is the distribution according to work is dominant and a variety of modes of distribution coexist. Besides, according to the relevant statistics, with the continual development of the Private Economy, Non-state Owned Economy and Foreign Investment Economy, the original laws and regulations on labor relations could not restrict and regulate the new labor relations effectively, hence the irregularity of labor market was caused. A large amount of illegal employments appeared frequently in the Private Economy, Non-state Owned Economy and Foreign Investment Economy; a lot of illegal employments were reported by the media and it caused great stir in our society. The author will analysis and conclude the situation of the labor relationship management in our country by using relevant data with the background of LAW ON EMPLOYMENT CONTRACTS. For example, these regulations such as the compulsive sign of the non-fixed term labor contract under special circumstances, the economic compensation of dissolution and termination of a labor contract, and the compulsive regulation of the personal services dispatch would have great restrictive effect on the original non-signed labor contract, short period of labor contract, and the abusive personal services dispatch etc. Thus the illegal costs of not paying social insurance, not undertaking the cost of occupational injury, increasing labor intensity without paying, and not signing labor contract etc. were increased. At the same time, the LAW regulated roundly the employment, unemployment and the renewal of the contract. The author will analyze according to the recruitment, employment, contract renewal, and the labor insurance of the enterprises with the specific effect caused by the LAW ON EMPLOYMENT CONTRACTS and the measures that should be taken. Moreover, the suggestions and strategies of innovating the labor relationship management under the background of LAW ON EMPLOYMENT CONTRACTS will be put forward.
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