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Year in review
While there is no significant development in employment-related legislation, the judiciary organ has displayed two key trends: (1) growing focus on safeguarding employees' basic labour rights, such as strengthening the enforcement of paid annual leave, aligning with government initiatives to boost domestic household consumption; and (2) greater support for employers' discretion in operation management, particularly in cases of position adjustment.
Additionally, the Supreme People's Court of China has been working to standardise judicial and arbitral practices nationwide. The Interpretation (II) of the Supreme People's Court on Issues Concerning the Application of Law in the Trial of Labour Dispute Cases (Supreme Court's Interpretation (II)), effective from 1 September 2025, offered uniform guidelines on several contentious labour issues, such as the restrictions on non-compete agreements, the mandatory obligations for employers to execute open-term employment contracts upon certain circumstances, job reassignments, etc.
Since late 2024, the Supreme People's Court has reinforced the mandate for open-term labour contracts. Recent rulings demonstrate that if an employee has two consecutive fixed-term contracts, the employer cannot unilaterally terminate employment. After the second contract ends, the employer must offer an open-term contract upon the employee's request. A broad national consensus has emerged in support of this mandate, including...
The Los Angeles County District Attorney's Office, led by Nathan Hochman, is investigating potentially fraudulent claims in two large sex abuse settlements approved by the L.A. County Board of Sup...