Dear Sir/Madam,

 

Welcome to read Llinks Bulletin:“China's New Labor Rules: Key Provisions, Corporate Impacts, and Compliance Strategies”.

On August 1, 2025, China's Supreme People's Court (SPC) issued the Interpretation (II) of the Supreme People's Court on Issues Concerning the Application of Law in the Trial of Labor Dispute Cases (Fa Shi [2025] No. 12) (the "Judicial Interpretation II"), along with six accompanying representative labor dispute cases (the "Representative Cases").

Scheduled to take effect on September 1, 2025, Judicial Interpretation II clarifies contentious issues in contemporary labor disputes—particularly non-compete clauses, social insurance, and employee benefits—to unify judicial standards and improve adjudicative consistency. The Representative Cases—drawn from proactive judicial practice—illustrate how Judicial Interpretation II applies to real-world disputes.

This article provides an analysis of Judicial Interpretation II’s pivotal provisions and newly established rules, assesses their practical implications for corporate employment management, and offers useful recommendations for the compliance advice of workplace management.

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