Judges’ interpretation of laws and labor rights protection: a study of labor contract-related court decisions in China

Abstract

While labor rights protections in China have been extensively studied, the existing literature lacks a systematic analysis of how workers fare in labor dispute litigations and what factors contribute to the litigation outcomes. Drawing on 108,816 court decisions of labor dispute lawsuits related to the absence of labor contracts, this study examines how migrant status, job titles, and legal representation shape litigation outcomes. We further unpack the decisions ruled against workers based on judges’ justifications. Overall, workers have a winning rate of 69%. Migrant workers are not more likely to lose in general, but they are more likely to lose because judges decide that the employment relationship does not exist, and less likely to lose because they miss the statute of limitations. Workers holding managerial or administrative positions have a lower probability of losing, yet they are more likely to lose for having specialized jobs. Lastly, having a lawyer is associated with better litigation outcomes for both parties, but the benefits of legal representation are considerably larger for employers than for workers. These findings contribute to the literature on labor rights protection and labor dispute resolution.