A new labor contract law was put into effect on Tuesday.

The 98-article law was approved by China's top legislature in June. It entitled staff with more than 10 years of service at a company the right to sign contracts that would protect them from dismissal without cause.

It also required employers to contribute to their employees' social security accounts and set wage standards for workers on probation and overtime.

Chang Kai, is dean of the Research Institute of Labour Relations under the Beijing-based Renmin University.

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

Tian Chengping, Minister of Labor and Social Security, outlined the future for China's labor and social security.

The adoption of the Labor Contract Law will boost the implementation of the labor contract system, establish employee's record system. The minimum wage system will be improved, and a mechanism of regular pay increases for enterprise employees and a mechanism for guaranteeing payment of their salaries will be set up.

Many experts also say although the law raised human resources costs of a company, it would enhance staff loyalty and reduce invisible costs.