What shall be done if there are disputes about production between a foreign invested enterprise and its employees?
If labor disputes occur between the employer and employees, they shall first of all be solved through negotiation between the enterprise and its trade union. If they cannot be solved, either party of the disputes or both parties can seek arbitration from Shanghai Labor Dispute Arbitrary Committee. Either party who is still unconvinced can bring it to the Shanghai People’s Court of Justice for legal prosecution. Q24: Is it necessary to form a trade union in a foreign invested enterprise? In accordance with the Law of Trade Union of the P.R.C., any physical laborer or mental laborer of a manufacturing enterprise or of an institution or of a government office who lives mainly on his salary has the right to join or organize a trade union regardless of his nationality, race, sex, occupation, religion and education. The trade union of the enterprise shall help and guide the employees in signing labor contracts with the administration of the enterprise or of the institution. It can also repre
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