The new labor law aims to better protect employees' rights while having minimal impact on business costs because flexibility can be achieved through employer- employee negotiations, the Ministry of Labor and Social Security vice minister said.
Sun Baoshu's comments yesterday came after Nine Dragons Paper (2689) chair Zhang Yin, a CPPCC delegate, called for the removal of the newly added "lifelong" clause from the law which took effect on January 1.
Entrepreneurs have complained the law raises costs, knocking down the competitiveness of companies.
Sun said it only forces companies to pay compensation to employees when abruptly fired, if there were legal contracts existing between the two parties.
He said the measure still allows "lifelong contracts" to be ended through negotiation between employers and employees
