Labour dispute arbitration is the activity that the labour Disputes Arbitration Committee, as the impartial third party, arbitrates the labour disputes between employers and employees. It is the statutory procedures for settlement of labour disputes, and also the pre-procedure for labour disputes settlement through lawsuit.

The Labour Disputes Arbitrabon Committee is composed of the representatives from labour administrative department, trade union at the same level, as well as the representatives of employers. The industrial Tribunal is consisted of arbitrators designated by the Arbitration Committee shall handle the labour disputes. Mediation by the Arbitration Tribunal shall precede

the arbitration procedures. The Mediation Decision binds the parties involved, and shall be carried out. The parties involved may file a lawsuit to the People's Court within 15 days upon receiving the Arbitration Decision provided they are not satisfied with it. If one party refuses to fulfill the obligations defined in the Mediation Decision or the Arbitration Decision, the other party may apply to the People's Court for enforced implementation. Two parties of a labour dispute may reach an agreement through reconciliation, and the applying party shall go through procedures of withdrawing the arbitration application with the Arbitration Committee after the agreement is made.