Untying the Two “Deadlocks”of Labor Contract Law Is Necessary for the Recovery of Chinese Economy

Labor Contract Law receives mixed evaluations since its implementation.The call for the amendment is hot and even some scholars regard it as the"tiger in the road"which hinders the economic development. The Central Committee of the Communist Party of China pays high attention to the construction of harmonious labor relation and the amendment has been a top priority. Labor Contract Law leads to two"deadlocks"of which the entrepreneurs are afraid. The first one is that the non-fixed term labor contract cannot be cancelled and the second one is that they must pay the economic compensation at the expiration of contract. These two rules hinder the employment enthusiasm of entrepreneurs. The current laws have excessive expectation for the non-fixed term labor contract and too strict regulations; as for the economic compensation at the expiration of contract, it increases the enterprise cost. The amendment of these two articles will benefit the recovery of Chinese economy and make the labor relation more harmonious.