In this article, through selecting the data from 2003 to 2012 of China’s A-share manufacturing listed companies, we empirically analyze the differences of labor protection level in places of different degrees of marketization and the complementary role the government plays in the market. Our studies find that in areas of higher degree of marketization, the labor protection level is higher, and in areas of lower degree, the level is lower. After the implementation of the Labor Contract Law, the labor protection level of enterprises in areas of low degree of marketization has increased significantly with increasing intervention of government on labor protection. What’s more, the increased amplitude is larger than that of the enterprises in areas of the high degree of marketization. Further empirical examinations show that the market’s and government’s functions to the labor protection mainly are increasing the difficulty of employee layoffs. The results in this article show that the government plays a complementary role in areas where the market is not perfect, to improve the labor protection level to be consistent.