Labor arbitrators rule in favor of e-contract
Print Edition
IN the first case of its kind, arbitrators in Jiading District have ruled that a labor contract signed on a website could be considered legal.
China’s Law of Employment Contracts requires employers and employees to sign “formal contracts.” The Electronic Signature Law also stipulates that electronic signatures are legal as well with hand-written signatures or seals.
The Third Research Institute of China’s Ministry of Public Security said it was the first time that eID, an electronic identification technology, was involved in a labor dispute case.
A man surnamed Zhang had filed a complaint against his former company, where he had worked for two months last year, saying he should be paid two times his salary because the company did not sign a “formal contract” with him as required by the law.
Zhang actually signed an e-contract with the company on a website called Fadada, which allows users to use eID-incorporated bank cards that can be accessed on smartphones with NFC functions.
Based on an explanation about the technology from the Third Research Institute, a proof of the authenticity of the contract from Fadada, the arbitrators turned down the applicant’s appeal.
The Industrial & Commercial Bank of China has issued over 50 million debit cards which has the eID technology.
Chen Jincheng, Chief Product Officer of Fadada, told Shanghai Daily that about 7 million contracts have been signed on the website but most of them involved the financial industry.
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