Overview

The Supreme People’s Court of China issued its third official Opinion on Various Issues Related to the Application of Law to the Handling of Employment Dispute Cases in September - the first time that the SPC provides its views on the Employment Contract Law and related issues.

While the SPC Opinion largely avoids addressing any substantive issues, it does include some important procedural provisions, including some on overtime that contradict the official interpretations adopted by some provincial and municipal high courts.

In another provision, the SPC Opinion stipulates that agreements between employers and employees regarding termination of employment and the settlement of salary, overtime, severance, and other matters should be upheld as valid unless they violate the law, were signed under threat or deception, or involve major misunderstandings or gross unfairness. This briefing from Baker & McKenzie has the details.