New labor contract law changes employment landscape(2)

Although the law raised human resources costs of a company, it would enhance staff loyalty and reduce invisible costs, he said.

The law was welcomed by employees.

Huang Shuiyou, a worker from Shaoguan in Guangdong who has worked at many factories in southern China, believed it "most important to have a stable job".

"Now that we have the new law, the bosses couldn’t fire us without reason."

Statistics indicated about 40 percent of private-sector employees lacked labor contracts. Critics also charged unpaid wages, forced labor and other abuses have accompanied China’s economic boom.

But the law was not a universal remedy after all.

"If the boss runs away without paying us, who shall we turn to? " Huang asked.

Cai Zhengfu, vice president of the Association of Taiwan Investment Enterprises in Shenzhen, said an environment for workers to defend their legal rights hadn’t taken shape in China’s hinterland so far.

"If the intensity of law enforcement varies in regions, it would result in a difference in labor cost," he said.

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