A new Chinese labor law will take effect in 2008, which rules that a employee working for over 10 years in a company will not be fired by the company. This new law will make it harder to fire an old employee in China. Employees may applause for that.

But many enterprises, including local and multinational ones, begin to take actions now. They cut their employees with 10 years’ contribution in them. They fear that in 2008 and later, it will be difficult to fire these employees for a high legal and money cost.

Huawei, a top telecom equipment maker, joins the job cutting tide. It forces “old” employees to renew their contracts in 2007, and Huawei wants to make them “new” legally in this way.

But the expats in China should not be worry about that, for few will work for one company for over 10 years in the country. Am I right?

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