*This article has been presented to the Shanghai University of Finance Economics as a final paper for the Labor Law Course in the first semester of 2024-2025.
Abstract
This study researches labor law systems in Türkiye and China to protect foreign employees’ rights based on Labor Law. The study compares the two countries’ legal frameworks, focusing on foreign employees’ rights. Türkiye and China, despite adopting international labor standards, need more study in practice. In Türkiye, a more comprehensive legal structure based on human rights has been established under the influence of the European Union harmonization process. While the Law on Work Permits for Foreigners determines the legal status of foreign employees, social security rights are protected by the Law on Social Security and General Health Insurance. Nevertheless, unregistered employment in lower-level skilled sectors such as agriculture, construction, and services limits foreign employees’ access to social rights. The labor contract law is an important reform in China that aims to regulate
Introduction
The position of employees is more vulnerable compared to employers in labor law. Therefore, legal regulations are typically interpreted in favor of the employees to maintain a balance between the employee and the employer. If employers have near-unlimited rights over employees, it would transform the employment relationship into a form of slavery. Among employees who hold a more vulnerable status relative to employers, certain groups may be in even more delicate situations, such as women, disabled individuals, and others. Foreign employees are more disadvantaged than domestic employees due to language and legal status barriers. This study will examine the rights of foreign employees in China and Türkiye under labor law and the effectiveness of their respective legal systems in protecting these rights. Geographically and culturally distinct, China and Türkiye are signatories to certain international treaties and members of various international organizations.[1] We will also discuss the applicability of these treaties in this research. The research methodology adopted includes a literature review and a comparative analysis approach. We formulate the following research question: In which aspects do the labor rights of foreign employees in the Chinese and Turkish labor law systems show similarities and differences?
1. Labor Law Framework
1.1. China’s Historical Background
China, which developed a modern employer-employee relationship towards the end of the imperial period, switched to a socialist economic model after 1949. No legalization movement was seen until 1978. The Labor Law, adopted in 1995, was the first step towards codifying labor law in the People’s Republic of China. (Périsse, 2017). The regulations regulated the employees’ working hours, and the rights of the employees were tried to be protected by law with concepts such as individual and collective labor agreements. The Labor Contract Law, which came into force in 2008, diversified employees’ rights by providing more safety.
1.2. Türkiye’s Historical Background
The economic and social changes experienced since the late Ottoman Empire have greatly affected Türkiye’s workforce. With the declaration of the Republic, the development of the economy, which was mostly based on agriculture, towards the industrial and service sectors has also created radical changes in the structure of the workforce.(ILOSTAT Data Explorer, n.d.) The acceleration of industrialization since the 1950s has led to an increase from agricultural areas to urban, thus changing the country’s workforce profile. During this period, the state’s lack of investment in rural development has increased low-qualified and unregistered employment in cities. (ILOSTAT Data Explorer, n.d.) In the 1960s, labor migration abroad periodically affected the Turkish economy and the rights of employees. (Demir, 2016) The economic policies implemented in Türkiye since the 1980s have triggered the establishment of new legal regulations, especially regarding flexibility in the business world and the prevention of unregistered work. (Demir, 2016) Many reforms were implemented in the social security system during this period, and national regulations aligned with the International Labor Organization (ILO) and European Union (EU) standards. 2024/12/18 00:03:00
The competition experienced in globalization has forced Türkiye to reorganize legislation regarding foreign investments and labor life. Law No. 4817 on Work Permits of Foreigners, enacted in 2003, is an important starting point, especially regarding the employment of foreign labor. (ILOSTAT Data Explorer, n.d.) In recent years, one of Türkiye’s most important problems in labor life has been unregistered employment and low-wage labor.
2. Rights and Protections for Foreign Employees
2.1. Employment Rights and Obligations
The rights of foreign employees in Türkiye arising from labor law are regulated within the Law on Work Permits for Foreigners. With this regulation, foreigners must obtain a work permit in Türkiye, and the legal regulation protects their social security rights. (Demir, 2016)The employer’s application to the relevant state institutions obtains the work permit. In particular, the unregistered employment of foreign employees who do not have any status may cause them to be deprived of social rights. (OECD, 2005) These regulations are very important in this respect. In Türkiye, foreign employees’ social security rights are included in the calculation during their employment, and foreigners can benefit from rights such as retirement and healthcare. (Demir, 2016) However, unqualified foreign employees may need help accessing social rights because they are employed without insurance. (ILOSTAT Data Explorer, n.d.) In China, the labor rights of foreign employees are regulated by the Chinese Labor Contract Law. In China, foreigners, as in Türkiye, must obtain a work permit, subject to the employer’s request and approval by relevant institutions (Périsse, 2017). In China, foreign employees are generally preferred for highly skilled jobs, but they may experience limitations in terms of social security and job security (Taylor, 2011). The Employment Contract Law, which came into force in 2008, is an important reform in protecting foreign employees’ rights. This law prevents employers from unfairly dismissing employees and makes it mandatory to sign an employment contract (Reutersward, 2005). However, due to the deficiencies in the implementation of local governments, these regulations are not effective enough, especially for employees working for short periods (Ahl et al., 2020)
2.2. Social Security and Welfare Policies
Social security law policies are important in protecting the social rights of foreign-origin employees. However, the legal regulations and practices in Türkiye and China may differ regarding the participation of foreign employees in social security law systems. Social Insurance and General Health Insurance Laws regulate the social security system in Türkiye. The social security rights of employed foreign workers are on an equal footing with Turkish citizens. Foreign workers are insured under equal conditions in line with their work permits and are included in the social security system (Demir, 2016). This system also protects against risks such as work accidents, occupational diseases, sick leave, maternity leave, retirement due to disability, old age, and death. However, unqualified foreign workers especially need help accessing the social security system. Unregistered employment is at the forefront of these problems. According to the OECD, some foreign employees work without registration (OECD, 2005). This situation is particularly prevalent in the agriculture, construction, and service sectors. In addition, the social security rights of refugees and individuals under temporary protection in Türkiye are not fully equal and are protected to a limited extent. ILO data shows these groups are generally subjected to low wages and long working hours. They are not included in the social security system because they take advantage of their positions (ILOSTAT Data Explorer, n.d.).Therefore, reducing unregistered employment and facilitating access to the social security system is important to increase the social welfare level of foreign workers in Türkiye. In China, the social security of foreign workers is regulated under the Chinese Social Security Law and the Regulation on Work Permits for Foreigners. Foreign workers are included in the social security system when they receive a legal work permit, and their employers must pay social security premiums (Périsse, 2017). Foreign workers in the social security system can benefit from social rights such as retirement, health services, and unemployment insurance at the same level . However, foreign workers need help accessing the social security system. In particular, cases where social security premiums are not paid for foreign workers working on short-term contracts are frequently encountered(Reutersward, 2005). In addition, foreign workers’ access to social security rights may vary depending on their region. In some areas of China, local governments are flexible in social security practices, making it difficult to protect the rights of foreign workers (Ahl et al., 2020). Workers from rural areas in China are similarly deprived of social security. Studies show that unions are not effective enough in protecting the social rights of these workers and that the welfare level of workers remains low compared to other workers(Booth et al., 2021). Although Türkiye and China have opened their social security systems to foreign workers, the problems encountered in practice are similar. Unregistered employment, low wages, and short-term contracts are among the issues.
2.3. Anti-Discrimination Measures
Türkiye has a legal framework for preventing discrimination. Article 10 of Türkiye’s Constitution states that all citizens have equal rights and emphasizes that no discrimination can be made. In addition, Article 5 of the Labor Law explicitly prohibits employers from discriminating against employees (Demir, 2016). Although foreign workers’ working conditions and social rights are legally secured in Türkiye, there are problems in practice. According to the OECD’s Türkiye report, the concentration of foreign workers, especially in low-skilled sectors, increases employers’ discriminatory practices. For example, foreign workers in the agriculture, construction, and service sectors often receive lower wages than local workers and are not included in the social security system (OECD, 2005). In addition, ILOSTAT data shows that unregistered employment is widespread in Türkiye, which causes violations of foreign workers’ rights (ILOSTAT Data Explorer, n.d.). Individuals working with refugee status in Türkiye have difficulty obtaining official work permits, and this situation is a factor that fuels discrimination. Although there are legal regulations to prevent discrimination in Türkiye, the weakness of control mechanisms in practice leads to the continuation of these problems. In this context, reducing unregistered employment and strengthening social cohesion policies is important to prevent discrimination (Demir, 2016). The rights of foreign workers in China are protected under the Chinese Labor Contract Law and the Regulation on Foreigners’ Work Permits. Legally, foreign workers working in China are expected to have equal rights with local workers (Périsse, 2017). However, in practice, there are various problems in protecting the rights of foreign workers.
Migrant workers from rural areas, which play an important role in China’s economic growth, face discrimination more frequently. Most migrant workers work in low-wage and insecure jobs and do not benefit from social security rights. (Booth et al., 2021). In addition, language barriers and lack of legal knowledge leave foreign workers vulnerable to employer exploitation (Ahl et al., 2020). The Labor Contract Law came into effect in China in 2008. The law aimed to prevent the dismissal of employees and to protect employees’ social rights. Thus, the scope of the regulations is limited to ensure powerful control by local governments. (Reutersward, 2005) In addition, although unions in China are institutions that can play an important role in protecting workers’ rights, they often need to be more effective because they operate under state control(Booth et al., 2021). Although Türkiye and China have anti-discrimination legal regulations, there are significant differences and similarities in practice. Although Türkiye has established a more comprehensive legal structure against discrimination within the framework of the European Union harmonization process, informal employment and lack of supervision limit the effectiveness of this structure. (OECD, 2005). Although the rights of foreign workers are legally guaranteed in China, rights violations are common in practice due to language barriers, regional differences, and the weakness of unions (Ahl et al., 2020). The common solution proposal for both countries is to strengthen control mechanisms, prevent unregistered work, and implement policies to ensure the social integration of foreign workers.
3. Comparative Analysis
3.1. Similarities
The labor laws of Türkiye and China recognize regulations aimed at complying with international standards to protect the rights of foreign workers. Both countries are members of international organizations such as the International Labor Organization (ILO) and have become parties to various international agreements to protect workers’ rights arising from labor and social security law(Labour Protection : Challenges Facing Labour Offices and Social Insurance | Governance in China | OECD iLibrary, n.d.). First, foreign workers are included in the system through work permits in the labor laws of both countries, and this issue is addressed with priority. In Türkiye, the Law on Work Permits for Foreigners determines the permit processes required for foreigners to work legally; in China, similarly, permit procedures are regulated within the framework of the Regulation on Work Permits for Foreigners (Ahl et al., 2020; Demir, 2016). In addition, the social security systems of both countries are organized to cover foreign workers. While social security in Türkiye is secured by the Social Insurance and General Health Insurance Law, in China, foreign workers can benefit from rights such as retirement, health, and unemployment benefits by paying insurance premiums within the scope of their employment contracts(Demir, 2016; Périsse, 2017). In addition, both countries’ labor law reforms aim to protect workers’ rights. The Labor Law, which came into force in Türkiye in 2003, is an important reform that expands workers’ rights. In China, the Chinese Labor Contract Law, which went into effect in 2008, aims to prevent workers from working under contract and being unfairly dismissed.
(Reutersward, 2005).
3.2. Differences
There are some important differences between the labor laws of Türkiye and China. First, Türkiye’s laws regulating labor within the European Union harmonization process framework have a more comprehensive and human rights-focused structure than China’s (Demir, 2016). In Türkiye, the rights of foreign workers are regulated on an equal basis with those of local workers. However, in China, foreign workers mostly work in highly skilled jobs, and the rights of low-skilled foreign workers need to be sufficiently protected within the legal framework (Ahl et al., 2020). In China, local workers migrating from rural areas to cities face problems similar to those of foreign workers. Migrant workers may be subject to discrimination in cities and often cannot benefit from social security rights on an equal basis with other workers (Booth et al., 2021). This situation applies to individuals with refugee status and foreign workers working unregistered in Türkiye. In particular, foreign workers working in sectors such as agriculture and construction may have limited access to social rights (OECD, 2005). The number of Syrian immigrants who are registered and unregistered has a significant impact on this. China’s union structure is also different from Türkiye’s. While unions in China operate under state control, they need to be more adequate in defending workers’ rights in general, not just foreign workers. In Türkiye, the right to unionize is a constitutional right that allows workers to exercise their rights, such as collective bargaining and strikes, supported by the state (Booth et al., 2021; Demir, 2016). Another important difference is the impact of language barriers. In Türkiye, foreign workers, especially Arabic-speaking refugees (predominantly Syrian groups), are discriminated against in the labor market due to the language barrier. In China, the language barrier poses a significant obstacle to foreign workers seeking their legal rights (Périsse, 2017).
3.3. Implications
Comparative analysis of the labor law systems of Türkiye and China reveals that the two countries face similar difficulties in protecting foreign employees’ rights arising from labor law, but their responses to these challenges differ. Although Türkiye has a more comprehensive legal framework to comply with European Union standards, problems such as unregistered work, the rights of refugee workers, and lack of supervision persist in practice (Demir, 2016; Labour Protection : Challenges Facing Labour Offices and Social Insurance | Governance in China | OECD iLibrary, n.d.) In China, legal reforms to protect the rights of foreign workers remain limited in practice due to factors such as the attitude of local governments and language barriers. In addition, the similarity of problems experienced by local workers migrating from rural areas and foreign workers in China points to structural issues in the labor market (Ahl et al., 2020; Booth et al., 2021)
The following implications give for more effective protection of foreign employees’ rights based on Labor Laws in both countries:
- Strict supervision mechanisms should be established to ensure employers act by the law.
- Strengthening independent unions can be important in defending the rights of foreign workers.
- Education programs should be implemented to overcome the language barrier and ensure foreign workers know their legal rights.
Although Türkiye and China have legal regulations to protect the rights of foreign workers, problems encountered in practice limit the effectiveness of these regulations. Despite Türkiye’s aims to have a legal framework close to European standards, the situation of unregistered employees and refugee workers poses problems. In China, the protection of foreign rights employees remains limited due to language barriers, regional differences, and the ineffectiveness of unions. This analysis emphasizes that policies should be developed in both countries to protect the rights of foreign workers.
Conclusion
This study compares Türkiye and China’s labor law systems, researching similarities and differences in protecting foreign employees’ rights, access to social security, and anti-discrimination measures. Protecting the rights of foreign workers is critical for economic development and social justice in a globalizing world. Although Türkiye and China are trying to comply with international labor standards, various difficulties are experienced in practice.
The findings of the study show that the labor law systems in Türkiye and China have similarities but also differences: Both countries have made it mandatory for foreign workers to obtain work permits and have legally secured their inclusion in social security systems (Demir, 2016; Périsse, 2017). Efforts to ensure workers’ rights through labor law reforms have become evident with Labor Law, enacted in Türkiye in 2003, and the Labor Contract Law, enacted in China in 2008 (Reutersward, 2005). In Türkiye and China, language barriers stand out as a significant problem in seeking rights for foreign workers (Ahl et al., 2020). In Türkiye, the rights of foreign workers have been regulated within the framework (OECD, 2005). In China, the rights of foreign workers have been regulated more for highly skilled workers, and the protection of low-skilled workers has been inadequate (Périsse, 2017; Taylor, 2011). While unionization is guaranteed a constitutional right in Türkiye, unions in China are ineffective in defending foreign workers’ rights because they operate under state control (Booth et al., 2021). In Türkiye, unregistered employment makes it difficult for foreign workers to benefit from social security rights (Demir, 2016). In China (Reutersward, 2005), These findings indicate structural problems in the labor markets of both countries and the need to develop more effective policies to protect foreign workers. The following policy recommendations can be designed to more effectively protect the rights of foreign workers in Türkiye and China. Supervision mechanisms should be strengthened to ensure the social security system includes foreign workers working unregistered in Türkiye. Regional differences should be eliminated in China, and local governments should be more closely monitored for labor law reforms (Reutersward, 2005). Information and support programs should be created in Türkiye to increase foreign workers’ access to unions. Reforms in China should encourage independent work through unions, and structures defending workers’ rights should be strengthened (Booth et al., 2021). Training programs should be created in Türkiye and China to enable foreign workers to overcome the language barrier (Ahl et al., 2020).
References
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