Section 3 Hearing and Award

Article 31 To make awards of labor-dispute cases, labor-dispute arbitration commissions shall adopt the arbitral tribunal system. The arbitral tribunal shall be composed of three arbitrators, with one serving as chief arbitrator. Simple labor-dispute cases may be arbitrated solely by one arbitrator.

Article 32 The labor-dispute arbitration commission shall, within five days from the date it accepts an application for arbitration, notify the parties in writing of the composition of the arbitral tribunal.

Article 33 An arbitrator shall withdraw, and the parties also have the right to apply orally or in writing for his withdrawal, under one of the following circumstances:

(1) He is a party to the case in question or a close relative of a party or its agent;

(2) He has an interest in the case;

(3) He has other relations with a party to the case or its agent, which may affect impartial award; or

(4) He meets with a party or its agent without authorization or accepts invitation to dinners or gifts therefrom.

The labor-dispute arbitration commission shall, in a timely manner, make a decision on the application for withdrawal and notify the parties of the decision orally or in writing.

Article 34 Where an arbitrator is under the circumstances prescribed in Subparagraph (4) of Article 33 of this Law, or extorts for or accepts bribes, engages in malpractices for personal gain, or perverts the law in making awards, he shall bear legal liability in accordance with law. The labor-dispute arbitration commission shall dismiss him.

Article 35 The arbitral tribunal shall, five days before the hearing is held, notify both parties to a case of the date and place of the hearing in writing. Where a party has justifiable reasons, it may, three days before the hearing is held, request for postponing the hearing. The decision on whether to postpone the hearing is up to the labor-dispute arbitration commission to make.

Article 36 Where the applicant has received the written notification but fails to be present for the hearing without justifiable reasons or, without approval of the arbitral tribunal, withdraws from the hearing before it is over, it may be deemed to withdraw its arbitration application.

Where the respondent receives the written notification but fails to be present for the hearing without justifiable reasons or, without approval of the arbitral tribunal, withdraws from the hearing before it is over, an award may be rendered by default.

Article 37 Where the arbitral tribunal considers that expert evaluation is needed for issues of a special character, it may hand over such issues to the evaluation institution agreed upon by the parties; where there is no such agreement or the parties cannot reach an agreement, it shall designate an evaluation institution for the purpose.

The evaluation institution shall, at the request of the parties or under demand from the arbitral tribunal, send its experts to participate in the hearing. With permission of the arbitral tribunal, the parties may put questions to the experts.

Article 38 In the course of arbitration, the parties shall have the right to examination and cross-examination and to debate. Upon conclusion of the examinations and cross-examinations and the debates, the chief arbitrator or the sole arbitrator shall solicit the final opinions of the parties.

Article 39 Where the evidence provided by a party is substantiated upon verification, the arbitral tribunal shall make it the basis on which to confirm the facts.

Where a worker cannot provide the evidence, which is kept and controlled by the employing unit and is relevant to his arbitration claim, the arbitral tribunal may require the employing unit to give such evidence within a specified time limit. Where the employing unit fails to do so, it shall bear the unfavorable consequences.

Article 40 The arbitral tribunal shall make a written record of the hearing. Where the parties or the other participants in the arbitration believe that there are omissions or errors in their statements recorded, they shall have the right to apply for supplementation or correction. If the tribunal refuses to make supplementation or correction, the application shall be recorded.

The written record shall be signed or sealed by the arbitrators, recording clerks, the parties and other participants in the arbitration.

Article 41 After applying for arbitration of their labor dispute, the parties may reach a settlement on their own. Where a settlement agreement is reached, the arbitration application may be withdrawn.

Article 42 The arbitral tribunal shall mediate before making an award.

Where an agreement is reached through mediation, a statement of mediation shall be prepared by the arbitral tribunal.

In the statement of mediation shall be stated the arbitration claims and the results agreed upon by the parties. The statement of mediation shall be signed by the arbitrators, sealed by the labor-dispute arbitration commission and served on the parties. The statement of mediation shall take legal effect after acknowledgement by both parties.

Where mediation fails or before the statement of mediation is served, one party goes back on the agreement reached, the arbitral tribunal shall make an award in a timely manner.

Article 43 Where the arbitral tribunal is to make an award of a labor dispute case, it shall finish making the award within 45 days from the date the labor-dispute arbitration commission accepts the arbitration application. If an extension is needed due to the complexity of the case, such extension shall be subject to approval by the director of the labor-dispute arbitration commission, and the parties shall be notified of the extension in writing; however, the period of extension may not exceed 15 days. If no arbitral award is made at the expiration of the time limit, the parties may initiate a litigation to a people's court with respect to the labor dispute.

When making an award of a labor dispute case, in which part of the facts are clear, the arbitral tribunal may make an award first on the basis of the said facts.

Article 44 In respect of the cases involving the recovery of labor remuneration, payment of medical expenses for job-related injury, economic compensation or damages, the arbitral tribunal may, according to the application of the parties, make an award on advance execution and transfer it to the people's court for execution.

For the arbitral tribunal to make an award on advance execution, the following conditions shall be met:

(1) The relationship between both parties in terms of their rights and obligations are clearly defined; and

(2) The living standards of the applicant will seriously be affected, unless advance execution is awarded.

Where a worker applies for advance execution, no guarantee needs to be provided.

Article 45 An award shall be made on the basis of the opinions of the majority of the arbitrators, and the differing opinions held by the minority of the arbitrators shall be recorded. When an opinion of the majority cannot be formed in the arbitral tribunal, an award shall be made on the basis of the opinion of the chief arbitrator.

Article 46 In the award shall clearly be stated the arbitration claim, the facts under dispute, the reasons for award, the results of award and the date of award. The award shall be signed by the arbitrators and sealed by the labor-dispute arbitration commission. The arbitrators holding differing opinions on the award may choose to sign or not to sign it.

Article 47 For the following labor disputes, the arbitral award shall be final and the award shall take legal effect from the date the award is made, unless otherwise provided for in this Law:

(1) disputes involving the recovery of labor remuneration, medical expenses for job-related injury, economic compensation or damages, and the amount involved does not exceed that of the standard local monthly wage rates multiplying 12 months; and

(2) disputes arising over working hours, the period of rest and vacation, and social insurance, etc., in the course of applying the occupational standards of the State.

Article 48 Where a worker is dissatisfied with the arbitral award as prescribed in Article 47 of this Law, he may initiate a litigation to a people's court within 15 days from the date he receives the award.

Article 49 Where an employing unit has evidence to prove that the arbitral award prescribed in Article 47 of this Law falls under one of the following circumstances, it may, within 30 days from the date it receives the award, apply for revocation of the award to an intermediate people's court at the place where the labor-dispute arbitration commission is located:

(1) It is definite that Laws and regulations are applied erroneously;

(2) The labor-dispute arbitration commission has no jurisdiction over the dispute;

(3) The statutory procedure is contravened;

(4) The evidence on which the award is based is forged;

(5) The other party has concealed evidence, which is sufficient to affect an impartial award; or

(6) When arbitrating the case, the arbitrator extorts or accepts bribes, engages in malpractices for personal gain, or perverts the law in making the award.

If the people's court, after forming a collegiate bench, finds upon examination and verification that any of the circumstances as prescribed in the preceding paragraph exists in award-making, it shall revoke the award.

Where the arbitral award is revoked upon decision by the people's court, the parties may, within 15 days from the date they receive the award, initiate a litigation to a people's court with respect to the labor dispute in question.

Article 50 Where a party has objection to the arbitral award of a labor dispute case, other than the ones prescribed in Article 47 of this Law, it may initiate a litigation to a people's court within 15 days from the date it receives the award. If no litigation is initiated at the expiration of the prescribed time limit, the award shall take legal effect.

Article 51 The parties shall, within the prescribed time limit, perform the statement of mediation or the award that takes legal effect. If one party fails to do so at the expiration of the time limit, the other party may, in accordance with the relevant provisions of the Civil Procedure Law, apply to a people's court for execution. The people's court that accepts the application shall execute the statement of mediation or the award in accordance with law.