The Labor Law affirms the freedom of workers in choosing their occupation, and of enterprises in hiring people. This not only protects the legitimate rights and interests of workers, but also guarantees the rights and interests of enterprises, thus pushing forward the reform of the economic system, the development of the labor market and a modern enterprise system.

The Labor Law puts the labor contract at the centre of its provisions. In 2007, China issued the Labor Contract Law, which clarified the rights and obligations of the two parties signing a labor contract. The law puts great emphasis on protecting workers’ legitimate rights and interests, and provides a legal framework for developing harmonious and stable labor relations.