Where it is available, a method of settling a labor-management dispute by having an impartial third party hold a formal hearing, take testimony and render a decision. The decision is usually binding upon the parties.

Award

The decision of an arbitrator in a dispute. The arbitrator's award is based upon the evidence presented, the agreement and the arguments of both parties. In labor arbitration, the arbitrator's reasons are generally expressed in the form of a written opinion, which accompanies the award.

Collective Bargaining

A method of mutually determining wages, hours and terms and conditions of employment through negotiations between representatives of the employer and the union.

Collective Bargaining Agreement

A written agreement or contract that is the result of negotiations between an employer and a union. It sets out the conditions of employment (wages, hours, benefits, etc.) and ways to settle disputes arising during the term of the contract.

Confidential clauses

The confidential information exemption can no longer be claimed in relation to any contract unless the contract contains a confidentiality clause.

Economic Compensation

Economic compensation provides workers, whose jobs have been terminated through no fault of their own. Economic compensation is intended to provide an unemployed worker time to find a new job equivalent to the one lost without financial distress.

Impasse

A deadlock in negotiations. After bargaining in good faith, the parties have failed the reach an agreement on one or more issues.

Labor Organizer

A person usually employed by a union (usually the regional or international union), whose function it is to enlist the employees of a particular employer to join the union.

Labor Contract

The resulting agreement reached by the parties during the negotiations/bargaining process. Also known as a collective bargaining agreement or contract.

Non-compete agreement

A non-compete agreement is typically signed by a new employee as a condition of employment. If the employee later leaves the company, a well-written non-competition agreement prevents former employees from competing with the company, recruiting other employees, or misusing confidential information such as customer databases. Such an agreement should always be used when hiring a key employee, as defined by the parameters of the business. A non-compete agreement is particularly useful for employees who have access to critical information, either through job responsibility or through social interactions with owners or high-level executives. Every business should consider having its key employees or sales people sign this contract as part of their employment agreement. If the employee later leaves the company, this agreement will prevent them from competing with the company.

Public Employee

A person who is employed by a municipal, county, state, or federal agency or state college or university.

Supervisor

An individual (regardless of his/her job description or title) having authority, in the interest of the employer, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward or discipline other employees of the employer. A supervisory employee is also one who has responsibility for directing employees, answering their grievances, or recommending disciplinary action, if authority is not merely clerical but requires independent judgment.

Civil Law

A system of law originated from Roman Law and now prevailing in Continental Europe and other parts of the world. The system is based on statutes rather than court decisions.

Common Law

A system of jurisprudence originating in England and later used in the United States and other Commonwealth countries. It is based on judicial precedent rather than statutory rules.

"Individual Partnership"

Two or more citizens associated in a business and working together, with each providing funds, material objects, and techniques according to an agreement.

Sole Proprietorship

A business entity which, in accordance with the Sole Proprietorship Law, is established in China and is invested in by one natural person, and in which the investor owns all its assets and is unlimitedly liable for all the debts of the business.

Partnership

Profit-oriented organizations formed by partners who enter into partnership agreements, jointly make capital contributions, carry on business, share profits, bear business risks and are jointly liable to an unlimited extent for all debts and obligations thereof.

Joint Venture

A business activity begun by two or more companies acting together, sharing the costs, risks, and profits.

Partnership Enterprise

A profit-oriented organization which is, subject to the Partnership Enterprises Law, formed within China by partners who enter into a partnership agreement, jointly make capital contributions, carry on business, share profits, bear business risks, and are jointly and severally liable to an unlimited extent for all debts and obligations thereof.

Individual Business

Refers to businesses run by individuals who have been lawfully registered and approved to engage in industrial or commercial operations within the sphere permitted by law.

Articles of Association

The charter of the company, a document filed with the AICs (Administration of Industry and Commerce) by company founders when establishing a company to describe the purpose, place of business, and details of a company.

Corporate Services

The area of legal services relating to a corporation needs, such as corporate structure, taxation consultation, human resources, etc.

Notary

A person authorized to attest to and certify certain types of documents in order to take depositions, and to perform certain acts in commercial matters, such as protesting commercial papers.

Plea

Answer made by a defendant to the case presented by the plaintiff.

Judgment

Legal decision or official decision of a court.

Compensation

Payment made by someone to cover the cost of damages or hardship caused

Business Secret

Technological and business information, inaccessible to the general public, which can bring economic benefits to its owner, has practical applicability and for which the owner has adopted protective measures.

Suit, Sue

Case in a law court; prosecution of a claim

Litigation

Activities to solve a dispute through legal

Mediation

A dispute resolution method designed to help warring parties resolve their own disputes without going to court. In mediation, a neutral third party (the mediator) meets with the opposing sides to help them find a mutually satisfactory solution. Unlike a judge in a courtroom or an arbitrator conducting a binding arbitration, the mediator does not have the power to impose a solution. No formal rules of evidence or procedure control mediation; the mediator and the parties usually agree on their own informal ways to proceed.

Judicial Interpretations

An interpretation of the decisions made by a judicial system.

District People's Court

Court of the lowest level in the court system of the People's Republic of China, usually established at the county level.

Intermediate People's Court

Court between the level of the High People's Court and the level of the District People's Court