The labor costs and risk of law of industrial disputes in China will groundswell with the Labor Contract Law of the PRC which has been enforced on January 1st, 2008. After enforcing the law, the increasing costs such as severance pay, financial compensation fee, the earnest of staffing placement will be estimated; at present, the Taiwanese businessmen in Shanghai had estimated the labor costs of each employee will increase 50%. However, the invisible costs, impeding management, such as the employer¡¦s command will be negotiated from only hold in employers becomes on equal terms with employees, the employers perhaps turn to relative press, even operate the working time, time off arrangement, insurance and so on. All of these will increase difficulties on human resource management. The research attempts to analyze the Labor Contract Law of the PRC, evaluates strategies of legislation from reflecting background of draft to processing of adoption, and compares differences between the new and old Labor Contract Law of the PRC, especially the Taiwanese businessmen common usage logic of Labor Law to treat the relationship between employers and employees, all of these questions should be in new evaluation standards by legislation of the Labor Contract Law of the PRC. The research collected books, articles, literatures and practical opinions in recently years to compare and analyze the Labor Contract Law of the PRC, Labor Contract Law of R.O.C and Labor Contract Law in each Country. Otherwise, analyzing three traditional industries by ¡§Analytic Hierarchy Process¡¨ and the Pearl River Delta in Dongguan as an object practically to interview the directors of Taiwanese businessmen in department of human resource arrangement and realizes their opinions and defenses after executing the Labor Contract Law of the PRC. The results of research shows after executing the new Labor Contract Law, not only makes sure the setting procedure of the Collective Contract and emphasizes the efficacy of the Collective Contract and relationship with Labor Contract Law, but also firstly provides regulation for the regional and industrial Collective Contract and exclusively Collective Contract in Law. The regulation asserts and completes the Collective Contract system, and be more important consorting with relationship between employers and employees. It is the front burner that department of human resource arrangement should re-inspect whether the Labor Contract Law legal or not to avoid suddenly complication and compensation.