Mediation to have bigger role in labor disputes

Mediation will play a bigger role in solving labor disputes, according to a judicial interpretation announced by China's top court, the Supreme People's Court (SPC) on Thursday.

The judicial interpretation, to come into effect on Friday, indicates that such cases should be handed to a labor dispute arbitration committee before either party takes legal action.

Labor disputes have become the fastest growing type of civil case to be heard by national courts, the SPC said.

According to the interpretation, when the employers terminate labor contracts, they should pay financial compensation to the employees in accordance with relative laws.

In China, some employers arrange their employees to work for other companies. This is done to shorten the employees' work years in order to pay less compensation, as the compensating money is related to the employment period.