Labor disputes generally arise between employers and employees, or in Chinese legal terminology, between work units and the laborers. A dispute between an employer and its employee may not necessarily be a labor dispute, so you need to know the scope of labor disputes in China.

Generally, a dispute relating to any of the following matters is regarded a labor dispute:

(1)    the determination of the existence of labor relationship;

(2)    the formation, performance, amendments, cancellation and termination of employment contract;

(3)    removal, dismissal, resignation, job-leaving;

(4)    working hours, rest and leave, social securities, welfare, training and labor protection; and

(5)    salaries, medical care for work injury, economic compensation or damages etc..

Hard nuts often lie in the blurred areas where the relationship may be of that of employment or that of an independent contract.

Another controversial issue is whether high-ranking corporate officers should also be seen as laborer, thus enjoying the benefits under Chinese labor related laws. The answer may vary from court to court. However in Shanghai, it seems that courts tend to limit the benefits under the labor laws available to those corporate officers who are usually in the position of giving instructions and orders rather than receiving the same.