Settlement of trade disputes in labor relations—a comparative study between China and Malaysia / Liu Kai

Nowadays, the occurrence of multifarious trade disputes has influenced the social stability in certain degree. How to prevent and settle these disputes becomes the focus of each country. In labor relations, trade disputes normally arise over the issues of failure to pay salary, demand for higher payment, demand for better working conditions, and unfair dismissal of an employee. The content of trade disputes always relates to the labor rights and obligations. In China and Malaysia, trade disputes are principally regulated by the Labor Law of the People’s Republic of China and the Industrial Relations Act 1967 respectively. Both legislations provide various remedy measures for the settlement of trade disputes. By examining and comparing these remedy measures, this paper aims to find out the similarities and differences of the settlement tactics, settlement procedures and methods for trade dispute prevention between China and Malaysia; particularly focuses on the respective issues of the settlement of personnel disputes in China, and the settlement of collective bargaining disputes in Malaysia. For better resolving future trade disputes in labor relations, this paper proposes that both China and Malaysia should strengthen the labor supervision especially the labor inspection to reduce the occurrence of trade disputes; improve the trade dispute intermediation system; extend the outlet for trade dispute settlement; legislate to resolve the organization, staff arrangement and legal position of trade dispute arbitration committee; constitute the special procedural provisions; evaluate the application of contract law in the process of trade dispute settlement; and reform the arbitration institutions for trade disputes at all levels.