Labor Contract Law 6

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Chapter V Special Provisions

Part I Collective Contracts

Article 51 After consultation on an equal basis, enterprise employees, as one party, and their Employer may conclude a collective contract on such matters as labor compensation, working hours, rest, leave, work safety and hygiene, insurance, benefits, etc. The draft of the collective contract shall be presented to the employee representative congress or all the employees for discussion and approval.

A collective contract shall be concluded by the labor union, representing the enterprise employee, and the Employer. If the Employer has yet to establish a labor union, it shall conclude the contract with a representative nominated by the employees under the guidance of the labor union at the next higher level.

Article 52 Enterprise employees, as one party, may enter into a special collective contract with the Employer with regard to issues concerning work safety and hygiene, protection of female workers rights and interests, wage adjustment mechanism, etc.

Article 53 In areas below the county level, industry-based or area-based collective contracts may be concluded between the labor union and a representative of the enterprise in industries such as construction, mining, catering services, etc.

Article 54 After a collective contract is concluded, it shall be submitted to the labor administrative department. The collective contract shall become effective if within 15 days after receipt of the same, the labor administrative department does not raise any objection to the contract.

A collective contract that has been concluded in accordance with the law shall be binding upon the Employer and the employees. An industry-based or region-based collective contract shall be binding upon the Employers and the employees in the industry or in the area in the locality concerned.

Article 55 The criteria for labor compensation, working conditions, etc. as stipulated in a collective contract shall not be lower than the minimum criteria prescribed by the local people's government; the criteria for labor compensation, working conditions, etc. as stipulated in the labor contract between an Employer and an employee shall not be lower than those stipulated in the collective contract.

Article 56 If an Employer breaches the collective contract and infringes upon the employees labor rights and interests, the labor union may, in accordance with the law, demand that the Employer assume liability; if a dispute arising from the performance of the collective contract is not resolved after friendly negotiations, the labor union may apply for arbitration and institute legal proceedings in accordance with the law.

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