Publication Date

December 2009

Document Type





Abstract: Lower labor costs and realization of profits have been key components in the expansion of the global market. As we continue to witness the prolific liberalization of the global market, it is essential that we remember the importance of human capital. Workers play a paramount role in the realization of continued and sustained global market growth. Paradoxically, sustained growth in the global market is also fueled by the absence of workers’ rights and the resulting reduction of labor costs. Thus, multi-national companies and workers employed by multi-national companies, have encountered a seeming contradiction of workplace realities. From a capitalistic economic perspective, it is necessary for multi-national companies to compete for market share and realize profits. However, in order to promote social harmony and ensure against large-scale social unrest, workers must be given basic rights ensuring economic security and workplace justice. China has enacted the Labor Contract Law to address challenges surrounding these issues. This paper will discuss the efficacy of China’s embracing the rule of law so as to effectively enforce the Labor Contract Law. The paper will also give an overview of the concepts forming the foundation of the rule of law. Further, the paper will offer a brief comparative analysis of the United States’ use of the rule of law in relation to resolving post-slavery labor issues. Finally, the paper will recommend a model system for use by China in enforcing the Labor Contract Law.

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