(Xinhua)
Updated: 2007-12-29 16:19

China's top legislature adopted a law on labor dispute mediation and arbitration on Saturday aimed at "fair and timely" settlement of disputes and lower costs for workers seeking to safeguard their rights. The new law takes effect on May 1, 2008.

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After three readings, the law was approved by lawmakers attending the weeklong 31st session of the Standing Committee of the National People's Congress (NPC).

"To solve labor disputes fairly and in a timely way, the law has strengthened the role of grassroots mediation institutions, improved the arbitration system, and clearly stated that labor dispute arbitration is free of charge," said Wu Bangguo, the NPC Standing Committee chairman, who presided over the closing session.

"It will shorten the cycle of labor dispute settlement, lower the cost for laborers to safeguard their lawful rights, and is conducive to the development of a harmonious relations between employees and employers."

The new law has four chapters and 54 clauses, and it follows the labor contract law and the law on employment promotion in being approved this year to improve China's labor systems.