China Law Library

Labor Union Act of the People’s Republic of China

CBL’s Introduction

China’s Labor Union Act, translated by CBL into American English, turns unionization from a workers’ option into an employer duty. Penalties in China are far more aggressive than those in other jurisdictions, and blocking or delaying unions, ignoring mandatory payroll contributions, or unlawfully dismissing union officials could lead to court-enforced payment orders, compulsory reinstatement, and even criminal referrals for employers. Understanding these requirements is therefore as important to businesses as tax reporting or business licensing.

Contents

(Adopted April 3, 1992, by the Fifth Session of the Seventh National People’s Congress; amended October 27, 2001, by the 24th Session of the Standing Committee of the Ninth National People’s Congress Decision to Amend the PRC Labor Union Act; amended August 27, 2009, by the 10th Session of the Standing Committee of the Eleventh National People’s Congress Decision to Amend Certain Laws; amended December 24, 2021, by the 32nd Session of the Standing Committee of the Thirteenth National People’s Congress Decision to Amend the PRC Labor Union Act)

Chapter 1 General Provisions

Section 1 This Act is enacted under the Chinese Constitution to protect the role of labor unions in national political, economic, and social matters, as well as to define their rights and obligations and ensure their active participation in socialist reforms and development.

Section 2 Labor unions are mass organizations formed voluntarily by employees and led by the Communist Party of China. They represent the working class and serve as a link between the Party and the workforce.

The National Federation of Labor Unions and its local unions shall advocate for workers and protect their legal rights pursuant to law.

Section 3 All wage‐earning employees of mainland China businesses, public institutions, government agencies, and nongovernmental organizations (hereinafter “employers”) have the right to form and join labor unions pursuant to law, regardless of ethnicity, race, gender, occupation, religious beliefs, or educational background. No organization or individual shall restrict or interfere with this right.

Labor unions shall adapt to changes in business structures, workforce demographics, employment relationships, and employment types while continually protecting the rights of workers to join and form unions pursuant to law.　　Section 4 Labor unions shall abide by and uphold the Chinese Constitution as the fundamental basis for their activities, and shall prioritize economic development, support socialism, maintain democracy, and uphold the leadership of the CPC. Labor unions shall abide by prevailing political ideologies and commit to internationalization reforms, as well as maintain and improve their political integrity, progressive values, and representative function while independently carrying out their work under their governing charters.

The National Congress of Labor Union Members is responsible for issuing and amending the China Charter of Labor Unions and addressing any conflicts with the Constitution or law.

The government shall be responsible for protecting labor union legal rights.

Section 5 Labor unions shall be responsible for organizing and educating workers to exercise their rights under the Chinese Constitution and law to fulfill their roles as participants in national governance and actively participate in the management of national, economic, cultural, and social matters. Labor unions shall support government efforts and uphold the socialist governance system driven by the collaboration between the working class and the agricultural sector.

Section 6 Labor unions have a fundamental duty to protect the legal rights of workers and advocate for their interests. They shall represent and advocate for the rights of workers while also protecting the public interest.

Labor unions shall establish processes to coordinate employment relationships, protect worker rights, and maintain constructive work environments through negotiations and collective bargaining agreements.

Labor unions shall arrange for workers to participate in workplace elections, negotiations, decision-making, administration, and oversight through meetings of employee representatives or other methods pursuant to applicable Chinese law.

Labor unions shall form comprehensive networks of unions to actively serve workers, duly respond to worker concerns and demands, prioritize their well-being, address any challenges they face, and advocate for their rights.

Section 7 Labor unions shall motivate and organize workers to actively participate in economic development and to fulfill production and operational goals. Labor unions shall improve ideological and ethical, technological, scientific, and cultural guidance for workers to create a motivated, ethical, cultured, and disciplined workforce.

Section 8 Labor unions shall advocate for improvements within the industrial workforce to enhance overall industrial worker capabilities, empower them as major contributors, protect their legal rights, and affirm their roles as key participants in order to develop a motivated, highly skilled, and innovative industrial workforce that is both dedicated and responsible.

Section 9 The National Federation of Trade Unions shall work to improve amicable and collaborative relationships with labor unions in other countries, guided by the principles of independence, equality, mutual respect, and non-intervention in internal matters.

Chapter 2 Labor Union Organizations

Section 10 All labor unions shall be established under a governance model that combines collective decision-making with centralized leadership.

All labor union committee members shall be elected by meetings of all union members or member representatives. Shop union committee members shall not include immediate family members of company executives.

Labor union committees shall be accountable to and report their activities to meetings of union members or member representatives, which shall oversee their activities.

Meetings of union members or member representatives are entitled to remove or replace elected representatives or labor union committee members as necessary.

Parent labor unions shall guide and support their subordinate unions.

Section 11 Employers with 25 or more union members shall establish shop union committees. Employers with fewer than 25 union members may independently establish a shop union committee, create joint union committees with members from two or more employers, or elect a union representative to organize union activities. Employers with a significant number of women employees may create labor union committees to represent the interests of women employees specifically, and such committees shall function under the oversight of their labor unions. Women members may be elected to serve on labor union committees for businesses with few women employees.

Joint shop labor unions may be established in towns or city precincts where a considerable workforce is present.

Local labor unions shall be formed in areas at or above the county level.

National or local industrial labor unions may be established by participants within the same or similar industries as necessary.

The National Federation of Trade Unions shall govern all labor unions established in China.

Section 12 The establishment of any shop labor unions, local labor unions, and national or local industrial labor unions shall be subject to prior approval from the appropriate parent unions.

Parent unions are authorized to assign officers to assist and guide the establishment of subordinate labor unions, and interference by any individual or entity in this process is prohibited.

Section 13 No organization or individual may dissolve or merge labor unions without authorization.

A shop labor union shall automatically dissolve if the employing entity is wound up or dissolved, and any such event must be promptly reported to the parent union.

Membership entitlements in a labor union dissolved under this section may be maintained pursuant to specific rules issued by the National Federation of Trade Unions.

Section 14 Labor unions in businesses, public institutions, and nongovernmental organizations with over 200 employees may elect a full-time union president. The number of full-time labor union officers shall be determined through negotiations between the business, public institution, or nonprofit organization and its labor union.

Section 15 The National Federation of Trade Unions, local labor union federations, and industrial labor unions shall be recognized as independent, nongovernmental organizations.

Shop labor unions meeting the criteria for legal entities under the Civil Code shall be recognized as nongovernmental organizations pursuant to law.

Section 16 Shop labor union committee members shall serve three or five-year terms. Local labor union and industrial labor union committee members shall serve terms of five years.

Section 17 Shop labor union committees shall convene regular meetings with union members or member representatives to discuss and address major union matters. An ad hoc meeting of union members or member representatives may be convened by the shop union committee or at the request of more than one-third of the membership.

Section 18 Labor union presidents and vice presidents shall not be reassigned prior to the expiration of their terms without prior approval. All reassignments deemed necessary shall be subject to the approval of the labor union committee and its parent union.

The removal of a labor union president or vice president must be approved by a meeting of all union members or member representatives and requires a majority approval to proceed.

Section 19 Employment contracts for full-time shop labor union committee presidents, vice presidents, and officers shall automatically renew for the full duration of their terms. Employment contracts for part-time committee presidents, vice presidents, or officers shorter than their terms shall automatically renew to the end of their terms, except in instances of material misconduct or upon the employee reaching the statutory retirement age during the term.

Chapter 3 Labor Union Rights and Obligations

Section 20 Labor unions are entitled to require businesses, public institutions, or nonprofit organizations to cease and desist from any violations of established procedures for labor union member representative meetings or employee elections to ensure that employees can exercise their lawful rights to participate in management.

Businesses and public institutions must present all issues pending discussion and resolution at meetings of all the employees or employee representatives pursuant to law. Businesses and public institutions must present all issues requiring discussion

Section 21 Labor unions shall counsel employees in the negotiation and execution of employment contracts with businesses, independent public institutions, and nongovernmental organizations.

Labor unions shall represent employees in negotiations with businesses, independent public institutions, and nongovernmental organizations, and enter into collective bargaining agreements on their behalf pursuant to law. Draft collective bargaining agreements shall be submitted to a meeting of all employees or employee representatives for discussion and approval.

Parent unions shall be responsible for guiding and counseling subordinate unions when executing collective bargaining agreements.

A labor union is entitled to require the business, public institution, or nongovernmental organization to correct any violation of a collective bargaining agreement or employee rights and to assume liability for such violation pursuant to law. The labor union may submit any disputes arising under a collective bargaining agreement that cannot be resolved through negotiation to the appropriate labor dispute arbitration agency and may file suit in a jurisdictional court if the arbitration agency refuses to accept the matter or if the union is not satisfied with the arbitration award.

Section 22 Labor unions are entitled to challenge any disciplinary actions imposed by businesses, public institutions, and nongovernmental organizations they believe are improper.

Employers are required to provide labor unions with prior notice outlining the rationale for any employment contract terminations. A labor union may request a review of any termination it believes to violate the law or the employment contract, and the employer is required to consider the labor union’s opinion and provide a written response.

Labor unions are obligated to support and assist employees seeking arbitration for labor dispute claims or filing litigation for alleged violations of their rights by employers.

Section 23 A labor union shall represent employees in negotiations with a business, public institution, or nongovernmental organization and demand corrective action in response to any of the following violations of employee rights and employment law. The employer shall correct the violation and provide the union with a response, and the labor union may request local government intervention as appropriate under law if the employer refuses to correct its violation:

(a) Unlawful deductions from employee wages or unjustified payment delays;

(b) Failure to provide a safe and healthy work environment;

(c) Noncompliant extensions of work hours;

(d) Violations of women or minor employee rights;

(e) Any other conduct that constitutes a serious violation of employee rights.

Section 24 Labor unions shall oversee every new construction, expansion, or technical upgrade project to ensure that the appropriate working conditions and occupational safety and health equipment are included in the initial project design, and are developed and implemented concurrently with the main project pursuant to Chinese law. Businesses and the jurisdictional agency shall give due consideration to the opinions of labor unions, address any matters as necessary, and provide the unions with written notice of their decisions.

Section 25 Labor unions are entitled to recommend corrective actions to employers upon identifying any unlawful instructions, coercion of employees to perform dangerous work, or risks of major accidents and occupational hazards. Employers must give due consideration to such labor union recommendations and provide a prompt response. A labor union is also entitled to recommend that an employer evacuate employees from hazardous areas if the union determines that employees face life-threatening danger, and the employer must act promptly to resolve any such emergencies.

Section 26 Labor unions have the right to investigate violations of employee legal rights by any business, public institution, or nongovernmental organization, and the appropriate government agencies are required to cooperate with labor unions in such investigations.

Section 27 Labor unions shall participate in the investigation and resolution of workplace incidents, fatalities, or other significant health hazards affecting employees. Labor unions shall be entitled to recommend corrective actions to the appropriate government agency and to require that members of management and other individuals directly involved in such violations be held liable. All recommendations submitted by labor unions must be promptly reviewed and addressed.

Section 28 Labor unions shall represent employees during work stoppages or slowdowns by conveying their demands and recommending corrective actions in negotiations with businesses, public institutions, nongovernmental organizations, or any other parties involved. Businesses, public institutions, and nongovernmental organizations must address all reasonable employee requests. Labor unions shall assist businesses, public institutions, and nongovernmental organizations in the prompt restoration of production and the resumption of normal operations.

Section 29 Labor unions shall participate in the mediation of labor disputes.

Local labor dispute arbitration agencies shall include representatives from labor unions among their membership.

County labor unions and their parent unions shall provide legal aid and other legal services to their subordinate unions and their workers pursuant to law.

Section 31 Labor unions shall assist employers in improving employee benefits, including without limitation wages, occupational safety and health programs, and social security.

Section 32 Labor unions and employers shall improve ideological and political guidance for employees, increase awareness of the role the workers play as stewards of the nation, and protect both national and employer property. Labor unions shall organize employees to participate in public events, including employee suggestion programs, technological innovation initiatives, and skills competitions. Labor unions shall also facilitate employee participation in independent cultural and technical education, job training, vocational education, and cultural and sports activities, as well as enhance occupational safety and health education and labor protection initiatives.

Section 33 Labor unions shall collaborate with the appropriate agencies to select, recognize, train, and manage employees of the month and outstanding employees, as authorized by the government.

Section 34 Government agencies shall consider the opinions of labor unions when drafting or amending laws that directly affect employee rights.

County governments and their parent agencies shall consider the opinions of county labor unions on major matters affecting employee rights when developing plans for national economic and social growth.

County governments, their parent agencies, and other applicable agencies shall involve county labor unions when developing policies concerning employment, wages, occupational health and safety, social security, and other matters directly impacting employee rights, and shall give the opinions of such unions due consideration.

Section 35 County governments and their parent agencies may convene meetings or use other appropriate means to inform county labor unions of major governmental work plans and administrative actions affecting labor union activities, and to review and address the opinions and demands advanced by labor unions on behalf of the workforce.

Labor regulators shall establish a government-led negotiation process with labor unions and business representatives to jointly consider and resolve significant employment relationship matters

Chapter 4 Shop Labor Union Organizations

Section 36 The meeting of employee representatives in a state-owned enterprise serves as the fundamental form of inclusive management and is the main process through which employees exercise their lawful rights to participate in management. The meeting of employee representatives shall perform its duties pursuant to law.

Labor union committees in state-owned enterprises are responsible for convening meetings of employee representatives, managing daily activities for meetings of employee representatives, and overseeing the implementation and enforcement of their decisions.

Section 37 Labor union committees in cooperatives shall support and organize employee participation in management and oversight, and protect their rights to elect and remove managers and to make decisions on major business management matters.

Section 38 Labor union committees in businesses and public institutions not covered by §§ 16 and 37 of this Act shall arrange for employees to participate in management through appropriate methods pursuant to law.

Section 39 Businesses, public institutions, and nongovernmental organizations shall consider the opinions of labor unions when reviewing major matters concerning business operations, management, and development. Labor union representatives must participate in meetings on matters directly affecting employee rights, including without limitation wages, benefits, occupational health and safety, work hours, time off and leave, protection of women employees, and social security.

Businesses, public institutions, and nongovernmental organizations shall support lawful labor union activities, and labor unions shall support the lawful management rights of such businesses, public institutions, and nongovernmental organizations.

Section 40 The election of employee representatives to a business’s board of directors and board of supervisors shall be carried out pursuant to the China Company Act.

Section 41 Shop committee meetings or activities shall not take place during regular work hours. Prior approval must be obtained from the business, public institution, or nongovernmental organization if it is necessary to conduct such meetings or activities during work hours.

Part-time shop labor union committee officials are permitted to dedicate up to three workdays per month to union activities while receiving regular wages and benefits.

Section 42 Employers shall be responsible for paying wages, bonuses, and allowances for full-time labor union committee officials. Full-time labor union committee officials shall be provided with social security and benefits equivalent to those provided to other employees.

Chapter 5 Labor Union Funds and Assets

Section 43 Labor union fund sources:

(a) Labor union membership dues;

(b) Funds allocated by the employer, equal to two percent of the total monthly wages paid to employees;

(c) Income from businesses and public institutions affiliated with the labor union;

(d) Government grants;

(e) Other sources of income.

Contributions made by businesses, public institutions, and nongovernmental organizations pursuant to § 43(b) may be deducted as pretax expenses.

All labor union funds shall be used primarily to support employee services and labor union activities. The National Federation of Trade Unions shall issue specific rules governing the use of labor union funds.

Section 44 Shop labor unions or their parent unions may petition the local court for a payment order against any business, public institution or nongovernmental organization that delays or refuses to contribute to union funds without a valid reason. The union may petition the court for enforcement if the employer does not comply with the order.

 

Section 45 Labor unions shall independently manage their funds and establish policies for budgeting, financial reporting, and financial oversight.

All labor unions shall establish a finance oversight committee.

The finance oversight committee shall be accountable to union members and member representatives and shall regularly review labor union income and expenditures and report its findings to meetings of all union members or member representatives. Labor union members or representatives attending such meetings are entitled to provide their opinions on the use of union funds.

The use of labor union funds shall be subject to government oversight pursuant to law.

Section 46 The appropriate government agencies and employers shall provide labor unions with the necessary facilities and office space for union work and activities.

Section 47 No organization or individual may misappropriate any assets, funds, or real estate allocated by the government to labor unions.

Section 48 A labor union’s employer affiliation may not be transferred from one business or public institution to another, without prior authorization.

Section 49 Retired county or parent labor union officials are entitled to receive retirement benefits equal to those afforded to retired government employees.

Chapter 6 Liability

Section 50 Labor unions are entitled to petition the government or other appropriate agencies, or initiate legal proceedings to address violations of their legal rights.

Section 51 Labor regulators shall issue a cease and desist order to any individual or entity that prevents employees from lawfully joining or forming a labor union or interferes with the assistance or guidance provided by a parent union in the formation of such union in violation of § 3 or § 12 of this Act. If the individual or entity fails to correct their violation, the labor regulator shall refer the matter to the appropriate county government or their parent agency for resolution. Any act of violence, threat, or coercion that causes material harm shall be subject to criminal prosecution pursuant to law.

Section 52 A labor union official unlawfully reassigned or subjected to retaliation while lawfully performing their assigned duties shall be entitled to immediate reinstatement to their original position as determined by the labor regulator. Any labor union official who suffers losses as a result of any unlawful reassignment or retaliation is entitled to indemnification against such losses.

Any insult, defamation, or physical harm of a labor union official lawfully performing their duties shall be subject to criminal prosecution pursuant to law if the conduct constitutes a criminal offense. If such conduct does not constitute a criminal offense, the appropriate police department may impose an administrative penalty pursuant to the Law Enforcement Administrative Penalty Rules.

Section 53 Upon finding a violation of this Act, the labor regulator shall order the immediate reinstatement of any employee terminated under the following conditions and require the payment of all otherwise owed compensation from the effective date of the termination through the date of reinstatement, or order the payment of damages equal to twice the employee’s annual wages:

(a) Any employee whose employment contract is terminated solely for participating in union activities;

(b) Any labor union official whose employment contracts is terminated solely for lawfully performing union duties under this Act.

Section 54 County governments and their parent agencies shall issue orders to correct and resolve the following violations of this Act pursuant to law:

(a) Preventing employees from voting through meetings of all employees or other means;

(b) Unlawful termination or merger of labor unions;

(c) Interfering with labor union investigations into workplace incidents or deaths, or other violations of employees’ legal rights;

(d) Refusing to participate in collective bargaining without a valid reason.

Section 55 Labor unions may file for litigation for recovery of property and funds as well as damages if union property and funds are misappropriated and not returned in violation of § 47 of this Act.

Section 56 The labor union or its parent union shall order any labor union official who violates this Act or infringes upon employee or union rights to correct their violation. The labor union may impose disciplinary action and require the official to indemnify the union against any resulting losses. An official who commits a serious violation shall be terminated under the China Charter of Labor Unions, and conduct that constitutes a criminal offense shall be subject to criminal liability pursuant to law.

Chapter 7 Miscellaneous

Section 57 The National Federation of Trade Unions and appropriate government agencies shall issue administrative rules for the implementation of this Act.

Section 58 This Act shall take effect upon issuance. The Labor Union Act of the People’s Republic of China issued by the central government on 29 June, 1950, is repealed on the same date.

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See CBL’s China Employment & Labor Law FAQ to learn more about how to succeed in China’s labor markets.

This article was translated to American English from the following government publication:

“中华人民共和国工会法”

https://flk.npc.gov.cn/detail2.html?ZmY4MDgxODE3ZjA3MmEyZTAxN2YwYWUxYTdmNjAwZjA

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