Article 48 Where an employing unit revokes or terminates a labor contract in violation of the provisions of this Law and the worker involved demands continued performance of the contract, the employing unit shall continue performing the same. If the worker does not demand so or if it becomes impossible for continued performance of the labor contract, the employing unit shall pay compensation pursuant to the provisions in Article 87 of this Law.

Article 49 The State takes measures to establish and improve an inter-regional system to ensure that a worker’s social insurance account is continued when he is transferred to another region.

Article 50 An employing unit shall issue a certificate of revocation or termination of the labor contract at the time of its revocation or termination and shall, within 15 days, undergo the formalities for the transfer of the worker’s personal file and social insurance account.

The worker shall hand over the matters related to his work as agreed upon by both parties. If the employing unit needs to pay financial compensation to the worker according to the relevant provisions of this Law, it shall make such payment upon completion of the procedure for handover of the work-related matters.

The employing unit shall keep the copy of a revoked or terminated labor contract for at least two years for reference.

Chapter V Special Provisions

Section 1

A Collective Contract

Article 51 The employees of an enterprise as one party and the employing unit as the another may, through negotiation on an equal basis, conclude a collective contract on matters relating to labor remuneration, working hours, rest and vocation, occupational safety and health, insurance, welfare benefits, etc. The draft collective contract shall be submitted to the worker’s congress or to all the employees for discussion and adoption.

A collective contract shall be concluded by the trade union on behalf of the employees of the enterprise with the employing unit. In an enterprise where a trade union has not yet been set up, such a contract shall be concluded with the employing unit by the representatives elected by the workers under the guidance of the trade union at a higher level.

Article 52 The employees of an enterprise as one party may conclude special collective contracts with the employing unit in respect of occupational safety and health, protection of the rights and interests of female employees, wage adjustment mechanism, etc.

Article 53 In regions at or below the county level, industry-wide or region-wide collective contracts may be concluded between the trade unions and the representatives of the enterprises engaging in such industries as construction, mining and catering service.

Article 54 After conclusion, a collective contract shall be submitted to the administrative department of labor and it shall become valid if the department raises no objection within 15 days from the date it receives the text of the labor contract.

A collective contract concluded in accordance with law is binding on the employing unit and the workers. An industry-wide or region-wide collective contract is binding on the employing units and the workers engaged in a given local industry or a given region.

Article 55 The rates for labor remuneration and the standards for working conditions, etc. stipulated in a collective contract shall not be lower than the minimum rates and standards prescribed by the local People’s government. The rates for labor remuneration and standards for working conditions, etc. stipulated in the labor contract between an employing unit and a worker shall not be lower than those stipulated in the collective contract.

Article 56 Where an employing unit breaches the collective contract and infringes upon the labor rights and interests of the workers, the trade union concerned may, in accordance with law, demand that the employing unit assume liability. If a dispute arise over the performance of the collective contract and cannot be resolved through consultation, the trade union may apply for arbitration or bring a lawsuit in accordance with law.