According to the requirements of the Labor Law of the People’s Republic of China, the conclusion of a labor contract shall follow the principles of equality, voluntariness and unanimity through consultation, and shall not oppose the stipulations of laws, administrative rules and regulations.

Under these principles, labor contracts shall be deemed invalid whereby:

(1) They result in the violation of laws, and/or administrative rules and regulations, and/or

(2) they result in resorting to measures such as dishonesty and intimidation.

An invalid labor contract shall have no legal binding force from the very beginning until its termination. Where a part of a labor contract is confirmed as invalid and the validity of the remaining part is not affected, the remaining part shall remain valid.

The invalidity of a labor contract shall be confirmed by a labor dispute arbitration committee or a people’s court.