Labour Arbitration: A Guide to Consultation in China

Labour arbitration is a specialized form of alternative dispute resolution (ADR) that is designed to resolve disputes between employers and employees. In China, labour arbitration is governed by the Labour Dispute Mediation and Arbitration Law of the People's Republic of China (the "Arbitration Law").

When to Consult Labour Arbitration

Pursuant to Article 79 of the Arbitration Law, labour arbitration may be consulted when there is a dispute between an employer and an employee over:

Wages or other benefits Labour contracts Dismissals or terminations Working conditions Social insurance premiums

Procedures for Labour Arbitration

In China, labour arbitration is generally conducted in two stages: mediation and arbitration.

Mediation

The first stage of labour arbitration is mediation. During mediation, a labour arbitrator attempts to facilitate a settlement between the employer and employee. Mediation is voluntary and can be requested by either party at any time during the arbitration process.

Arbitration

If mediation is unsuccessful, the dispute will proceed to arbitration. Arbitration is a more formal process than mediation and the decision of an arbitrator is binding on both parties. The arbitration process typically involves:

Submission of a written application for arbitration A hearing at which both parties present their evidence and arguments An arbitration award

Legal Framework for Labour Arbitration

The legal framework for labour arbitration in China is primarily governed by the Arbitration Law and its implementing regulations. The Arbitration Law sets out the basic principles and procedures for labour arbitration, including:

The right of employees and employers to access arbitration The independence and impartiality of labour arbitrators The confidentiality of arbitration proceedings The enforceability of arbitration awards

Role of Legal Counsel

Legal counsel can play a valuable role in assisting parties with labour arbitration. An experienced lawyer can:

Advise on the merits of a case and the legal options available Prepare and file arbitration applications and other documents Represent clients at mediation and arbitration hearings Negotiate settlements Enforce arbitration awards

Advantages of Labour Arbitration

Labour arbitration has several advantages over other forms of dispute resolution, including:

Speed: Arbitration is typically faster than litigation. Cost-effectiveness: Arbitration is generally less expensive than litigation. Confidentiality: Arbitration proceedings are confidential, which can be beneficial for both employers and employees. Expertise: Labour arbitrators are specialized in resolving labour disputes and have a deep understanding of labour law.

Conclusion

Labour arbitration is an important avenue for resolving labour disputes in China. By understanding the legal framework and procedures for labour arbitration, employers and employees can effectively protect their rights and interests. Legal counsel can provide valuable assistance throughout the arbitration process, ensuring that parties have access to fair and impartial dispute resolution.