One week has passed since China's new Labor Contract Law went into effect on the first day of the new year.

How do people from all walks of life view the law? And have they seen any changes so far?

Reporter:

"I wish that our yearly vacations could be guaranteed after the new law was enacted."

"I'm glad to see the new law sets wage standards for employees working overtime."

"Until now, I haven't noticed any changes happening in my company. But since our labor contract system is already quite developed, I'm satisfied with the current situation."

"The greatest thing for me is that I can finally have a written contract with my company."

Everyone has his or her own concern about the new Labor Contract Law. But as the last interviewee, who works with a privately-owned company, mentioned, employment with a written contract, this is the principle requirement of the new law.

Since employment can now be undertaken only under a written contract, Professor Li Jianfei with China's Renmin University says that many Chinese workers will soon benefit from the new law.

"The immediate beneficiaries will be ordinary workers in sectors like construction, mining, retailing and catering, especially those in small- and medium-sized private enterprises, where employees frequently begin work without signing a contract. Contracts are the foundations for workers' rights."

Hu Shaozhong, an employee in a restaurant in Beijing, has already benefited from the new law. He signed a contract with his employer on the first day of the new year.

"The specific items in our new contracts show more concern for employees. We have seen that the new contract law will better protect our rights."

According to the new Labor Contract Law, if employers don't sign contracts with employees who work one month or longer, but for less than one year, they should pay double the original salary. If an employee works for more than one year without signing a contract, the term of employment will automatically become non-fixed.

Professor Li Jianfei points out other areas in which the new law protects employees' rights.

"The law prescribes the circumstances to sign non-fixed-term contracts. Employers have to sign non-fixed-term contracts with their employees if the employees have worked for ten consecutive years, or if the two sides have signed fixed-term contracts twice. It also requires employers to provide compensation if they choose to fire their workers."

However, a non-fixed-term contract is not the equivalent of a lifelong job.

Many foreign companies have misunderstood the implications of the law, and have expressed concerns that the law will increase their labor costs. U.S. retail giant Wal-Mart, for example, fired more than 100 Chinese employees last October, saying "cutting staff will be difficult after the law becomes effective."

Professor Li Jianfei with Renmin University says the employers actually have the right to fire their long-term employees if they violate laws or are no longer capable of doing the job. He gives us an example.

"The law does not only favor employees. The employers can fire employees without any compensation if their employees work part-time in other companies."

The expert says the law will be a burden to companies which formerly depended on illegal workforces.

Yet, according to legal expert Wang Xiangqian, the new Labor Contract Law could actually help employers save their labor costs.

"They don't need to pay economic compensation to their long-term employees when they retire."

In fact, one of the goals of the new law is just to establish a worker-friendly social environment.

Chang Kai is the dean of the Research Institute of Labor Relations under Renmin University.

"The focus of the law is protecting employees' legitimate rights, building harmonious labor relationships for enterprises and realizing common development between employers and employees."

Some employers have begun to realize this point. Wang Xuchang is the manager of a restaurant in Beijing.

"After signing new contracts with my employees, their rights are better safeguarded. And at the same time, they have also developed a stronger sense of belonging in the restaurant. I guess this could be interpreted as a win-win result."

In addition to the newly-signed or renewed contracts, many people are wondering if the new law effects old contracts which were signed before 2008, but will expire at a future date.

Professor Wang Xiangqian, who contributed to the drafting and revision of the new law, offers his explanation.

"The new law can only restrict the contents or implementation of contracts signed after January 1, 2008. For these signed before that date, the new law is ineffective. But employers must not disobey the contracts and fire employees at will."

At the same time, the expert points out that if the old contracts contain anything that doesn't fit with the new law, employers should negotiate with their employees and make appropriate adaptations to the contracts.

In addition to the legislative efforts to protect workers' rights, China is also working on raising the average salary, increasing pension and establishing regulations on paid vacations for millions of workers.