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Beijing court pledges stronger focus on small business labor disputes

By Cao Yin | chinadaily.com.cn | Updated: 2026-04-29 17:58
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A Beijing court has pledged to intensify its focus on cases involving small and micro enterprises, noting that nearly half of its labor disputes over the past four years have involved such businesses.

"Small and micro enterprises face significant challenges regarding labor contract agreements, compensation, benefits and dispute resolution. These issues not only impede their growth but also infringe on workers' legitimate rights," said Lou Yuhong, vice-president of the Beijing No 1 Intermediate People's Court.

Speaking at a news conference on Wednesday ahead of Labor Day on May 1, Lou emphasized the importance of addressing these challenges through legal means to regulate business practices and safeguard workers' interests.

"Addressing these issues is also vital for fostering harmonious labor relations, building a sound business environment and supporting sustainable economic development," she added.

Lou said that from 2022 to 2025, labor disputes involving small and micro enterprises accounted for 47.5 percent of all labor cases heard by the court, with the number of such lawsuits rising.

The top five industries involved in these lawsuits were technology, education, construction, culture and film, and cleaning and security services. "This trend is largely due to the court's location, which hosts a high concentration of internet businesses and numerous startup tech firms," she said.

According to Lou, the disputes often centered on confirming labor relationships, claims for unpaid wages, and the termination or dissolution of labor contracts. These issues primarily stemmed from irregularities in contract procedures, insufficient protection of workers' rest rights and weak management practices.

"Some companies, for instance, required employees to work excessively long hours, with shifts exceeding 10 hours daily, surpassing the legal limit of three hours of overtime per day," she said. "Some cut costs by neglecting equipment maintenance, increasing employees' risk of accidents and occupational hazards, leading to more work-related injury cases."

To proactively reduce disputes, the court has dispatched judges to small and micro enterprises to provide legal education to employers, aiming to improve management practices. It has also published books to help employees recognize employment risks and boost their legal awareness, she added.

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