Empirical Study On Impact Of Labor Contract Law On Labor Cost

Recently,there has been many cases of the outside migration and bankrupt of enterprises in the Chinese southeast coastal economically developed areas.Publics opinions vary on the causes of the phenomenon.Some argue that human resource administration of those enterprises according to the Labor Contract Law leads to significantly increase of the labor costs,which overburden enterprises and eventually force them to wash up or move away.To understand the relationship between the Labor Contract Law and the enterprise labor costs accurately,this paper uses the empirical analysis method to deeply analyze the issue,so as to find the real causes the outside migration and bankrupt of enterprises,meanwhile to clear the Labor Contract Law's name.Through the analysis of the rights and obligations provisions in the Labor Contract Law,the law is not a groundbreaking law,but rather a response to the problems that need to be solved based on labor law.Thus most legal norms elaborate norms in the Labor Law.With the data model analysis,it is found that the labor costs of enterprises will not be greatly increased due to the implementation of the Labor Contract Law,and the extent of increase is extremely limited,additionally the growth of labor costs do not erode enterprises' profit.To prevent enterprises from the business failure,enterprises should start from improving their comprehensive production capacity,and fully implement the Labor Contract Law,to avoid the emergence of legal risks.We should objectively appraise the effects of implementation of the Labor Contract Law.We should not criticize that “the law has destroyed Chinese economy” without any solid supporting evidence.Any unwarranted and subjective criticism of such important law is mistreatment of employees legitimate interest.