The Ministry of Labor. Circular Concerning the Strengthening of Labor Contract Management and the Improvement of the Labor Contract System (April 3, 1997)

In light of the dispositions of the State Council for implementing the Labor Law and after two years of efforts, urban and township enterprises have basically implemented the labor contract system. Major advances have also been made in nonstateowned enterprises in the implementation of the labor contract system. The establishment of the labor contract system has played a positive role in forming a new employment mechanism in enterprises, promoting rational labor mobility, protecting, according to law, the legitimate rights and interests of both employees and employing units, and promoting the harmonious and stable development of labor relations. However, a number of problems, such as labor contracts with irregular content, failure to enforce labor contracts in an overall manner, and poor feasibility of some policies, have arisen in the course of implementing the labor contract system.