CHAPTER IX. SOCIAL INSURANCE AND WELFARE
Section 70. The State shall develop social insurance undertakings, establish a social insurance system, and set up social insurance funds so that labourers may receive assistance and compensations under such circumstances as old age, illness, work-related injury, unemployment and child bearing.

Section 71. The level of social insurance shall be in proportion to the level of social and economic development and the social affordability.

Section 72. The sources of social insurance funds shall be determined according to the categories of insurance, and an overall pooling of insurance funds from the society shall be introduced step by step. The employing unit and labourers must participate in social insurance and pay social insurance premiums in accordance with the law.

Section 73. Labourers shall, in accordance with the law, enjoy social insurance benefits under the following circumstances:

(1) retirement;
(2) illness or injury;
(3) disability caused by work-related injury or occupational disease;
(4) unemployment; and
(5) child bearing.
The survivors of the insured labourers shall be entitled to subsidies for survivors in accordance with the law.

The conditions and standards for labourers to enjoy social insurance benefits shall be stipulated by laws, rules and regulations.

The social insurance amount that labourers are entitled to must be timely paid in full.

Section 74. The agencies in charge of social insurance funds shall collect, expend, manage and operate the funds in accordance with the stipulations of laws, and assume the responsibility to maintain and raise the value of those funds.

The supervisory organizations of social insurance funds shall exercise supervision over the revenue and expenditure, management and operation of social insurance funds in accordance with the stipulations of laws.

The establishment and function of the agencies in charge of social insurance funds and the supervisory organizations of social insurance funds shall be stipulated by laws.

No organization or individual shall be allowed to misappropriate social insurance funds.

Section 75. The State shall encourage the employing unit to up supplementary insurance for labourers according to its practical situations.

The State shall advocate that labourers practise individual insurance in form of saving account.

Section 76. The State shall develop social welfare undertakings, construct public welfare facilities, and provide labourers with conditions for taking rest, recuperation and rehabilitation.

The employing unit shall create conditions so as to improve collective welfare and raise welfare treatment of labourers.

CHAPTER X. LABOUR DISPUTES
Section 77. Where a labour dispute between the employing unit and labourers takes place, the parties concerned may apply for mediation or arbitration or take legal proceedings according to law, or may seek for a settlement through consultation. The principle of mediation shall apply to the procedures of arbitration and lawsuit.

Section 78. The settlement of a labour dispute shall follow the principle of legality, fairness and promptness to so as to safeguard in accordance with the law the legitimate rights and interests of the parties involved.

Section 79. Where a labour dispute takes place, the parties involved may apply to the labour dispute mediation committee of their unit for mediation; if the mediation falls and one of the parties requests for arbitration, that party may apply to the labour dispute arbitration committee for arbitration. If one of the parties is not satisfied with the adjudication of arbitration, the party may bring the case to a people's court.

Section 80. A labour dispute mediation committee may be established inside the employing unit. The committee shall be composed of representatives of the staff and workers, representatives of the employing unit, and representatives of the trade union. The chairman of the committee shall be held by a representative of the trade union.

Agreements reached on labour disputes through mediation shall be implemented by the parties involved.

Section 81. A labour dispute arbitration committee shall be composed of representatives of the labour administrative department, representatives from the trade union at the corresponding level, and representatives of the employing unit. The chairman of the committee shall be held by a representative of the labour administrative department.

Section 82. The party that requests for arbitration shall file a written application to a labour dispute arbitration committee within 60 days starting from the date of the occurrence of a labour dispute. The arbitration committee may generally make an adjudication within 60 days from the date of receiving the application. The parties involved must implement the adjudication if no objections are raised.

Section 83. Where a party involved in a labour dispute is not satisfied with the adjudication, the party may bring a lawsuit to a people's court within 15 days from the date of receiving the ruling of arbitration. Where one of the parties involved neither brings a lawsuit nor implements the adjudication of arbitration within the statutory time limit, the other party may apply to a people's court for compulsory implementation.

Section 84. Where a dispute arises from the conclusion of a collective contract and no settlement can be reached through consultation by the parties concerned, the labour administrative department of the local people's government may organize the relevant departments to handle the case in coordination.

Where a dispute arises from the implementation of a collective contract and no settlement can be reached through consultation by the parties concerned, the dispute may be submitted to the labour dispute arbitration committee for arbitration. Any party that is not satisfied with the adjudication of arbitration may bring a lawsuit to a people's court within 15 days from the date of receiving the adjudication.
CHAPTER XI. SUPERVISION AND INSPECTION
Section 85. The labour administrative departments of people's governments at or above the county level shall, in accordance with the law, supervise and inspect the implementation of laws, rules and regulations on labour by the employing unit, and have the power to stop any acts that run counter to laws, rules and regulations on labour and order the rectification thereof.

Section 86. The inspectors from the labour administrative departments of people's governments at or above the county level shall, while performing their public duties, have the right to enter the employing units to make investigations about the implementation of laws, rules and regulations on labour, examine necessary date and inspect labour sites.

The inspectors from the labour administrative departments of people's governments at or above the county level must show their certifications while performing public duties, impartially enforce laws, and abide by relevant stipulations.

Section 87. Relevant departments of people's governments at or above the county level shall, within the scope of their respective duties and responsibilities, supervise the implementation of laws, rules and regulations on labour by the employing units.

Section 88. Trade union at various levels shall, in accordance with the law, safeguard he legitimate rights and interests of labourers, and supervise the implementation of laws, rules and regulations on labour by the employing units.

Any organizations or individuals shall have the right to expose and accuse any acts in violation of laws, rules and regulations on labour.

CHAPTER XII. LEGAL RESPONSIBILITY
Section 89. Where the rules and regulations on labour formulated by the employing unit run counter to the provisions of laws, rules and regulations, the labour administrative department shall give a warning to the unit, order it to make corrections; where any harms have been caused to labourers, the unit shall be liable for compensations.

Section 90. Where the employing unit extends working hours of labourers in violation of the stipulations of this Law, the labour administrative department shall give it a warning, order it to make corrections, and may impose a fine.

Section 91. Where an employing unit infringes in any of the following ways the legitimate rights and interests of labourers, the labour administrative department shall order it to pay labourers remuneration or to make up for economic losses, and may also order it to pay compensations:

(1) to deduct wages or delay in paying wages to labourers without reason;
(2) to refuse to pay labourers remuneration for the extended working hours;
(3) to pay labourers wages below the local standard on minimum wages; or
(4) to fail to provide labourers with economic compensations in accordance with the provisions of this Law after revocation of labour contracts.
Section 92. Where the occupational safety facilities and health conditions of an employing unit do not comply with the provisions of the State or the unit falls to provide labourers with necessary labour protection articles and labour protection facilities the labour administrative department or other relevant departments shall order it to make corrections, and may impose a fine. If circumstances are serious, the above said departments shall apply to a people's government at or above the county level for a decision to order the unit to stop production for consolidation. If the unit fails to take measures against potential accident which later loads to the occurrence of a serious accident and the losses of labourers' lives and properties, criminal responsibilities shall be investigated against the persons in charge mutatis mutandis the stipulations of section 187 of the Criminal Law.

Section 93. Where an employing unit forces labourers to operate with risks in violation of the rules and regulations, causing thus major accident of injuries and deaths, and serious consequences, criminal responsibilities of the person in charge shall be investigated according to law.

Section 94. Where an employing unit illegally recruits juveniles under the age of 16, the labour administrative department shall order it to make corrections, and impose a fine. If circumstances are serious, the administrative department for industry and commerce shall revoke its business license.

Section 95. Where an employing unit encroaches upon the legitimate rights and interests of female and juvenile workers in violation of the stipulations of this Law on their protection, the labour administrative department shall order it to make corrections, and impose a fine. If harms to female and juvenile workers have been caused, the unit shall assume the responsibility for compensations.

Section 96. Where an employing unit commits one of the following acts, the person in charge shall be taken by a public security organ into custody for 15 days or less, or fined, or given a warning; and criminal responsibilities shall be investigated against the person in charge according to law if the act constitutes a crime:

(1) to force labourers to work by resorting to violence, intimidation or illegal restriction of personal freedom; or
(2) humiliating, giving corporal punishment, beating, illegally searching or detaining labourers.
Section 97. The employing unit shall bear the responsibility for compensation if the conclusion of any invalid contracts is attributed to the unit and have caused damages to labourers.

Section 98. The employing unit that revokes labour contracts or purposely delays the conclusion of labour contracts in violation of the conditions specified in this Law shall be ordered by the labour administrative department to make corrections and shall bear the responsibility for compensation if damages have been caused to labourers.

Section 99. The employing unit that recruits labourers whose labour contracts have not yet been revoked shall, according to law, assume joint responsibility for compensation if economic losses have been caused to the original employing unit of the labourers.

Section 100. The employing unit that fails to pay social insurance premium without reason shall be ordered by the labour administrative department to pay within fixed period of time. If the unit still fails to make the payment beyond the time limit, an additional arrear payment may be demanded.

Section 101. Where an employing unit unjustifiably obstructs the labour administrative department and other relevant departments as well as their functionaries from exercising the powers of supervision and inspection or retaliates informers, the labour administrative department or other relevant departments shall impose fines upon the unit. If a crime is constituted, the person in charge shall be investigated for criminal responsibilities according to law.

Section 102. Labourers who revoke labour contracts in violation of the conditions specified in this Law or violate terms on secret-keeping matters agreed upon in the labour contracts and thus have caused economic losses to the employing unit shall be liable for compensation in accordance with the law.

Section 103. The functionaries of the labour administrative department or other relevant departments who abuse their functions and powers, neglect their duties, and engage in malpractices for selfish ends, shall be investigated for criminal responsibilities according to law if a crime is constituted, or shall be given an administrative sanction if the offenses do not yet constitute a crime.

Section 104. The functionaries of the State or the agencies in charge of social insurance funds who misappropriate the social insurance funds, shall be investigated for criminal responsibilities according to law if a crime is constituted.

Section 105. Where other laws or administrative rules and regulations have already specified punishments for the encroachment of the legitimate rights and interests of labourers that also violate the stipulations of this Law, punishments shall be given in accordance with the stipulations of those laws or administrative rules and regulations.

CHAPTER XIII. SUPPLEMENTARY PROVISIONS
Section 106. People's governments of provinces, autonomous regions and municipalities directly under the Central Government shall work out the implementing measures for the labour contract system according to this Law and in light of their local conditions, and report the measures to the State Council for the record.

Section 107. This Law shall become effective as of 1 January 1995.