Protection Of Enterprise Employment Mechanism Under The Labor Law

Employment system in China has gone through three stages: the first stage is a life-long employment system, the second is a combination of the life-long employment system and the contract system, the third is the contract system. Under the system of Planned Economy, the government employed the form of life-long employment in order to resolve the massive unemployment problem. However, with the need of reform, the life-long employment system was broken down gradually, and the labor contract system has been widely spread and applied, and it has been used up to now. So far, the labor contract system has been existed for 20 years. In the process of implementation, there have been some problems, such as: a low proportion of written contracts; short term of labor contracts, abuse of the trial period, employment discrimination, abuse of the dispatch services and so on. These problems not only do harm to the rightful interests of labors, undermine the harmonious and stable relations among labors, but also threat the stability of the whole society. In this regard, "Labor Contract Law" makes the following remedies: firstly, it defines the legal consequences of the act of not signing the labor contract clearly; secondly, it adjusts the structure of the total duration of labor contracts; thirdly, it reconstructs the employment dual-track system; last but not the least, it strictly regulates the trial period. However, during the implementation of the"Labor Contract Law", some new problems have emerged. First, there are some ambiguous concept terms and also there are loopholes in some of the provisions, which are likely to result in law"bugs"in practice. Second, there exists misunderstanding of the new rule of employment. Third, due to the international financial crisis, the economy has started to decline and enterprises are facing more pressure, resulting in an increase in corporate layoffs, more flexible employment forms, and an increase of the number of informal employment at the expense of that of formal employment. To solve these problems, the following measures may be taken. First, the further detailed rules, regulations and judicial interpretations should be drafted with focus on the employment system. Second, the power of labor law enforcement and construction of the corresponding administrative rules should be strengthened, and a credit system should be established to guarantee the abiding of the employment system. The third is to build a healthy working environment for law-abiding, and establish a positive incentive mechanism for enterprises. Fourth, the publicity work should be carried out widely. Fifth, a social security system, which suits informal employment, should be established.