Taiwan-based EMS (Electronics Manufacturing Services) provider Foxconn announced on December 19 that it will sign open-ended contracts with employees who have worked for eight consecutive years at its Chinese units, so as to meet the requirements stipulated by China's Labor Contract Law, to be implemented as of January 1, 2008. Open-ended contracts are expected to ensure practically permanent employment for these veteran staff, except for resignation or retirement.

Being the first Taiwanese company in China to make adjustments in keeping with the new law, Foxconn also stated that it will sign long-term contracts with other employees in the future. This move is seen as a public repudiation of the rumors that Foxconn will evade the new law by asking employees to hand in voluntary resignations and apply for their jobs anew, as Huawei is known to have done in November.