BEIJING has passed a landmark law that aims to give protection to certain redundant workers, making it easier for cash-strapped enterprises to make lay-offs.
The Regulation on the Dismissal of Workers Due to Economic Reasons in Enterprises will be effective from January 1.
The new regulation, which sets down in detail a section of the Labour Law which was passed in July this year, spells out procedures loss-making firms should follow when aiming to shed staff.
Beijing has been under growing pressure to introduce labour legislation as inflation has rocketed, fuelling worker unrest.
At present, although workers are laid off, there no rules to protect them from wrongful dismissal.
From the beginning of January, bosses will have to gain approval from unions and workers before any dismissal is announced, said Bai Ping, an official from the Labour Ministry. Those plans must be submitted 30 days in advance.