A new labor contract law went into effect in China on Jan. 1. The law requires employers to give their workers contracts, increase wages and pay compensation to workers who are fired.
Employees that have worked for a company for 10 years will be entitled to an “unlimited” flexible tenure contract that will provide legal benefits and protections.
Major manufacturing companies that make enormous profits off the backs of extremely low paid workers have begun to pack up and move to countries with few or no labor laws. “Fleeing at midnight” is becoming a well-known phrase—foreign companies shut down in the middle of the night, leaving behind equipment, unpaid wages and debt.
Chinese officials also accuse companies including Wal-Mart of firing and rehiring employees in order to avoid signing long-term contracts.
