The Changes of Chinese Labor Policy and Labor Legislation in the Context of Market Transition

This article examines the changes to and relations between labor policy and labor legislation in the context of China’s market transition with a focus on the 1994 Labor Law and the 2007 Labor Contract Law. The initial impetus to labor policy change came from the unemployment crisis at the end of the 1970s and the early 1980s. Since then, the state has relaxed its control over labor mobility and job allocation. The last two decades of the last century witnessed the most important changes in China’s labor policy, that is, the replacement of lifelong employment with contract-based employment and the replacement of government job assignment with the labor market. Such changes indicate the paradigmatic shifts of China’s labor policy in the reform era. Under the new labor policy paradigm, the role of law has been strengthened in governing labor relations and other labor-related affairs. Within the policy context of promoting economic growth while maintaining social stability, both policy and law are coordinated and complementary in stabilizing labor relations and protecting labor rights. Given the socioeconomic circumstances and the underdevelopment of the rule of law in China, policy is still important during the period of market transition.