Chinese enterprise reform, human resources and the 1994 Labour Law

Chinas Open Door policy had led to a massive influx of foreign investment. Extensive reforms have accompanied the modernization process in order to institutionalize the rule of law in economic relations, as in other marketed economies. As the PRC attempted in turn to regulate human resources in its emergent labour market, the authorities enacted a new Labour Law in July 1994 (effective January 1995) comprehensively codifying legislation in all categories of enterprises whether state-owned, private, joint ventures or wholly foreign-funded, relating to employment rights, individual and collective contracts, redundancy, health and safety, dispute procedures and so on. This article sets out the new legal framework, its theoretical and practical justification, and critically assesses and evaluates its main features. It will clearly be of interest to HRM practitioners involved or considering involvement in joint ventures or wholly foreign-funded enterprises in the PRC, for example.