Economic Analysis Of Chinese Labor Contract Law

China is paying more attention to labor relations during the process of accelerating transforming the pattern of economic development and strengthening the legal construction. In recent years, the labor and capital conflicts occurred frequently, which made balancing the labor and capital relations, protecting laborers'legitimate rights and interests and guaranteeing of public stability and economic development an outstanding problem. Aiming to build and develop harmonious labor relations, The Labor Contract Law, published and enforced in 2008, is an important law to coordinate labor relations and standardize labor contract system. As extensive interests are involved in the adjustment, the Labor Contract Law drew attention from both internal and external when it was still in draft. That is why we need to make an intensive study of Labor Contract Law. At the law and economics point of view, this essay is going to reach a conclusion of several suggestions for consummating the law though analyzing the historical evolution, current situation , existing problems and comparing with the relating legislation in China and foreign countries,.In the economic theory and analysis part, firstly Karl Marx's understanding to labor relations is presented as a teoretical guidance for us to understand and balance labor relations correctly and properly. Then, base on this, there comes an analysis of trilateral game between government, employer and employee in balancing labor relations, placing specially emphasis on what kind of clauses can make more balanced benefit for each part. Next, an explanation on cost-benefit analysis of law which is common used in law and economics serves as a basis of how to allocate legal resources effectively and maximize the profits. Finally, in view of existing current of economic growth transformation and industrial structure upgrade, I make an elaboration on industrial structure readjustment theory; analyze the effects that the Labor Contract Law made during the process of industrial structure optimization and upgrade combining with actual cases.Guiding by above economic theory, I make a summery of legislation survey in different stages of economic development. With relating data and cases, positive and negative effects as well as the reasons are objectively summarized during the period of time after the Law was brought into effect. Besides, the relating legislation on labor contract in France, Japan and India are analyzed, a conclusion drawn from the comparison and analysis can serve as a valued reference to China.Base on the comprehension of the analysis and discussion, we can consummate the Labor Contract Law mainly from the following two aspects: on one hand, from the legislative point, not only the clauses in the Labor Contract Law need improvement, but also the supporting laws and regulations; on the other, the enforcement environment needs to be improved. To raise some suggestions respectively from the point of government, enterprise and labor union who represents laborers'interests. With the adjustments of the three parts, the law needs to be popularized then it will go deep into the implementation fields, the society can understand it and accept it, and be willing to observe it on conscious. An expectation is that the Labor Contract Law will be further improved through above applications, get practically carried out and effect well in building and developing a harmonious stable labor relations.