Juridification in Chinese Labour Law: a cautionary tale of remuneration disputes

Abstract

Purpose

The purpose of this paper is to examine the post-enactment status of China’s Labour Contract Law and Labour Dispute Mediation and Arbitration Law, focusing on the dramatic rise in remuneration litigation amidst much criticism of weak or ineffective implementation of these laws.

Design/methodology/approach

This paper deploys both quantitative and qualitative analysis methods to investigate the features of remuneration litigation. Remuneration judgments by Beijing People’s Courts from 1 January 2014 to 31 December 2017 provide the primary empirical data. The intrinsic features of remuneration disputes are investigated to delineate subcategories of claims. Several judges were also interviewed to further explore the nature of remuneration disputes.

Findings

Four types of remuneration claims were identified: regular wage, minimum wage, overtime and others (including subsidies and welfare). Examination of these four types, especially how they are processed until concluded by court adjudication, provides a fuller picture of the post-enactment status of these laws and yields objective and rational findings. To explain the continuing steady rise in the volume of remuneration claims, as more workers have knowledge of their rights and access to the courts, this study identifies an increase in the number of factually complicated cases (e.g. overtime claims) and abmiguity in the relevant law, leaving some remuneration disputes difficult, if not impossible, to adjudicate. Conversely, the study also finds significant positive trends following these laws’ enactment, particularly a reduction in straightforward cases, such as disputes concerning non-payment of wages/minimum wages, on which the law is clear. It is evidently imperative to improve the clarity of the current laws through further legislation, as the most appropriate next step in China’s juridification process of developing its own rule of Labour Law.

Research limitations/implications

This study is purposely limited to examining remuneration litigation in Beijing’s courts from 2014 to 2017, which is representative of the national trend of dramatically rising remuneration disputes, and thus provides valuable insights. Future studies should cover a wider geographic territory and other categories of labour disputes to provide an even more comprehensive picture of the challenges and potential solutions.

Practical implications

By understanding the driving factors of rising labour remuneration disputes, the legislature, workers and employers can act accordingly to curb labour conflicts. The growing complexity and technicality of remuneration litigation indicates that the pressing need of labour juridification is to deploy a subtle, comprehensive method to improve legal clarity and judicial professionalism.

Originality/value

This study uniquely divides the types of remuneration litigation in Beijing, adopting methods and yielding findings absent from the prior literature. Both the progress and challenges in China’s rule of Labour Law process are reflected in this work, together with public policy and theoretical implications for further study.

Citation

Yan, D. (2019), "Juridification in Chinese Labour Law: a cautionary tale of remuneration disputes", Employee Relations, Vol. 41 No. 6, pp. 1273-1287. https://doi.org/10.1108/ER-10-2018-0281