The Analysis On The Nature Of Labor Contract

The labor contract law which is promulgated on January 1,2008 formulated more stringent clauses on the enforcement, stipulating and regulation of labor contract. However, in the back of the praise of its protection for the labors' right, there are lots of oppositions from the scholars and entrepreneurs. The article will give its own interpretation for the reason why such an enactment encounters the strong resistance.This paper is divided into several parts as follows:firstly, it takes the contract theory of institutional economics as the framework to understand the nature of labor contract with the contractual nature of firm; discussed the incomplete nature of labor contract and such characters' performance under the legal system; secondly, the article re-understands the private property of labor contract in the aspect of jurisprudence, gives a reasonable position for the labor contract law.; Thirdly, it studies the self-implement mechanism of labor contract and the effect of intervention by the law on the labor contract and tries to find a optimal path to reduce the transaction cost which arise by the intervention of law on the labor contract. At last, the thesis made some comments on the most controversial clauses in the current Labor Contract Law, proposed some methods to improve the deficiency.The innovation in the paper was that the author found the crucial element to differentiate the contract in the market and the contract of firm is the existence of labor contract of firm, demonstrated the incomplete nature of labor contract based on this opinion, and provided a new perspective for understanding the enforcement of labor contract. In the end, the article gave a rigorously logical verification on the reason for emerging of difference in the Labor Contract Law.