Labor Relations Influence on SMEs in China After the Enforcement of Labor Contract Law

At present, there are sharply problems and conflicts of Labor relations for SMEs in China. It will damage to harmony society. Especially After Implementing the Labor Contract Law, It influenced widely and deeply to SMEs in China. This paper investigated the current status and influence for SMEs of Beijing of Labor Contract Law. The conclusions are the following: There are greatly promotion for the signature rate of labor contract, specially for small enterprises, increasing 16.5%. Most of SMEs choose the strategies to adapting positively to the new law, including changing the model of employment, strict to the regulations of employment, increasing the budget of human resources and implementing the labor contract. In fact, The increase labor cost-abiding businesses is very limited, and the increase labor cost of not law-abiding enterprises is not more than 2.44% of the total cost which will not bring too much pressure to the businesses.