Civil disputes concerning the restructuring of state-owned enterprises may be settled in court under a new regulation announced yesterday.
Effective next month, the new regulation issued by the Supreme People's Court allows parties such as employees of companies in dispute and their creditors to seek legal redress.
Li Guoguang, vice-president of the Supreme People's Court, was quoted by Xinhua as saying that protection of employees' and creditors' interests was a key reason for the new regulation.
Thousands of state enterprises have been sold, auctioned off or closed down over the past decade as China reforms its economy. Critics have said that often laid-off workers do not receive any meaningful compensation. Banks and creditors have also suffered because many enterprises escape paying debts through mergers and closure.
According to Xinhua, Mr Li admitted that existing laws were inadequate and the absence of applicable laws hampered courts' adjudication.
'This regulation will protect the results of China's enterprise restructuring more effectively and play a positive role in maintaining enterprise and social stability,' Mr Li said.
'In adjudicating civil disputes involving the restructuring of enterprises, courts at all levels must pay special attention to the protection of the legitimate interests of employees and maintain stability in the enterprises and society. [The courts] must stop all illegal moves in the restructuring and must not tolerate any steps which infringe employees' interests.'
