The head of the Ministry of labor and social security explained in July 1st that, when the labor contract law is compared with the labor law, the following provisions should be given priority to when the supplementary provisions are laid down for personnel: a fixed term labor contract concluded with the unit and a non fixed term labor with the unit; there is no other employment for the family, and the elderly or minors who need support.

The labor contract law also stipulates that the employing units should re employ personnel within six months. They should be notified of those who are being laid off and give priority to those who have been laid off under the same conditions.

According to the person in charge, the labor contract law strengthens the requirement for the employer and the qualified workers to conclude an unfixed term labor contract. On the other hand, taking into account the need for the employer to adjust the economic structure and innovate the technology to meet the needs of the market competition, it relaxes the conditions for the employing unit to reduce personnel when it really needs to reduce personnel.

In addition to serious difficulties in the period of statutory rectification or the state of production and operation of the employing units, the labor contract law has increased two cases of layoffs: enterprise pformation, major technological innovation or adjustment of the way of operation. After changing the labor contract, people still need to be laid off. Other major changes in the objective economic situation based on the conclusion of the labor contract have resulted in the failure of the labor contract to be fulfilled.