By Luo Ai, Tang Xiaojing King & Wood Mallesons’ Commercial & Regulatory group

On 1 August 2017, Guangdong High Court published the Explanation about Difficult Issues in Adjudicating Labor Disputes (“Explanation”). This is Guangdong High Court’s third judicial opinion on labor disputes since the Employment Contract Law’s entry into force in 2008. This Explanation consists of 23 sections, which can be divided into five groups:

Group I (sections 1 to 4): Determination of employment relationship. The keynote is “employment relationship shall not be generalized”. Diversification and liberalization of employment models are recognized. The characteristics and constituent elements of employment relationship are reiterated. The courts put emphasis on substance and respect the agreement of the parties.
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