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Employment Law in China

Employment Law in China

The Employment Law in China includes a number of regulations for hiring national and foreign employees that can be explained by our Chinese employment lawyers. The Labor Law, the Labor Contract Law, and the Social Insurance Law are all drafted and enforced by the Ministry of Human Resources and Social Security of the People’s Republic of China.

The key legal principles of the Employment Law concern the types of employment contracts, the benefits/entitlements for the employees and ways to terminate the employment relationship. Our law firm in China offers services in a number of important areas for doing business in China, including employment. Our Chinese lawyers can help you hire or fire employees and settle any liabilities that may arise from an employment contract in China.

The employment contract in China

According to the provisions of the Chinese Labor Contract Law, an employment contract in China must include the following information in order to be considered valid:

– identification details for the employer and the employee;

– the expiration date;

– job description and details about the place of work;

– work hours, rest and vacation;

– remuneration;

– social security obligations;

– workplace safety and health information.

Employment contracts in China can be concluded for a fixed period of time or they can have a flexible duration period. Probation periods can also be agreed upon, however, not for more than six months. The termination of an employment agreement must be made by means of a 30 days’ notice.

Standard employment agreements do exist, however, the content of the employment contract should be adapted to the specifics of the work involved. A Chinese attorney can help you include special provisions in your work contract and make it suitable for various types of professions.

The employment contract should be signed within one month after the employee has commenced work. If the employer fails to do so, he may be subject to a penalty (a fee payable to the employee). 

An employment contract may be terminated by the employer or the employee. The employer may terminate the agreement without notice and with no penalties. However, this can take place only in specific cases like if the employee did not meet the criteria during the probation period or if he is accused of a serious breach towards the company. An employee can also be dismissed without notice if he is under prosecution for a criminal offence. When an employee wishes o terminate an employment contract he must provide a 30 days’ written notice. If you are interested to register a trademark in China, our lawyers can assist you. Most businessmen understand how important it is to register a trademark to distinguish their products and services in a crowded marketplace, like China. A trademark differs you from the competition, increases traffic and sales, keeps customers loyal to a brand, etc. If you are planning to register your trademark, the services of our lawyers are at your disposal.

Labor contract law in China

Labor contract law in China refers to the legal framework that governs the relationship between employers and employees. The primary legislation regulating labor contracts in China is the Labour Contract Law, which was enacted on January 1, 2008, and has undergone amendments since then. Here are some key points related to the labor contract law in China:

  • Types of contracts: The law recognizes two types of labor contracts: fixed-term and open-ended contracts. Fixed-term contracts have a specific duration, while open-ended ones do not. Specific regulations apply to each type of contract;
  • Contract stipulations: According to the law, an employer is required to provide a written employment contract to an employee within one month of the commencement of employment. The contract should include details such as job responsibilities, working hours, wage, social insurance, leave entitlements, and other relevant terms and conditions;
  • Employee’s rights and protection: The Chinese labor contract law provides various forms of protection for employees, including provisions for minimum wage, working hours, rest days, annual leave, sick leave, maternity leave, and other social benefits. It also outlines rules for overtime work, termination of employment, severance pay, and non-compete clauses;
  • Termination of employment: The law stipulates specific circumstances under which an employer can terminate his/her contract, such as: serious violations by the employee, significant changes in the objective economic conditions, or the employee’s inability to perform his/her job due to a non-work-related illness or injury. In cases of termination, employers are generally required to provide advance notice or pay severance based on the employee’s length of service.

It is important to note that labor laws and regulations in China can be subject to change and interpretation. For specific and up-to-date information, it is advisable to consult with our Chinese employment lawyers. They can offer you detailed information about Labor contract law in China. 

Our lawyers can also assist you if you are eligible to apply for residence in China. 

Employment law vs Labor contract law in China

Chinese Employment Law and Labor Law Contract in China refer to two different aspects of the legal framework governing employment relationships in the country. Here’s an overview of each:

China Employment Law refers to the broader body of laws and regulations that govern employment relationships in the country. It encompasses various legal provisions related to:

  • labor rights,
  • working conditions,
  • employee benefits,
  • termination procedures,
  • dispute resolution.

The primary legislation governing employment law in China is the Labor Law of the People’s Republic of China, which was enacted in 1994 and has since been amended. Chinese Employment Law covers a wide range of topics, including: employment contracts, wages, working hours, rest and leave entitlements, social insurance, workplace safety, non-discrimination, protection of women and minors, employee training, collective bargaining, and more. 

A Chinese Labor Law Contract, on the other hand, refers specifically to the written contract between an employer and an employee that governs their employment relationship. It is a legally binding document that outlines the terms and conditions of employment, as well as the rights and responsibilities of both parties. To learn more about it, you are welcome to get in touch with our employment lawyers in China.

If you are interested to relocate to China, please consult our immigration lawyers in China.

Employment lawyers in China

Our employment lawyers in China play a crucial role in ensuring that both employers and employees understand and comply with the complex labor laws and regulations in the country. Here are some key reasons highlighting the importance of employment lawyers in China:

  1. Legal compliance: China has a vast and intricate set of labor laws and regulations that can be challenging for employers to navigate. Our Chinese employment lawyers help businessmen understand their legal obligations, ensure compliance with labor laws, and avoid potential legal pitfalls. They can guide on issues such as employment contracts, working hours, wages, social insurance, workplace safety, and termination procedures;
  2. Dispute Resolution: Our Chinese employment lawyers assist in resolving disputes between employers and employees. They can represent either party in negotiations, mediation, or arbitration processes. In case of a lawsuit, employment lawyers can provide legal representation, gather evidence, and argue the case in court. Their expertise in labor laws and dispute resolution mechanisms can help protect the rights and interests of their clients;
  3. Contract drafting and reviewing: Our employment lawyers in China can draft, review, and negotiate employment contracts, ensuring that they align with the applicable labor laws and regulations. They can help employers include necessary provisions, such as non-compete clauses, intellectual property rights, and confidentiality agreements, to protect their business interests. For employees, our employment lawyers can review contracts to ensure fair and lawful terms and conditions.

Overall, our employment lawyers in China serve as valuable advisors, advocates, and representatives for both employers and employees. Their expertise in labor laws, dispute resolution, and legal compliance ensures fair and lawful employment practices and helps protect the rights and interests of all parties involved. Please get in touch with employment lawyers at our law firm in China for their services. 

Labor regulations in China

According to the law, the maximum amount of working hours in China is eight hours a day and 40 hours a week. Alternative working hours can be applied. Employees who work more than the legal amount of time per day or week are entitled to compensation: 150% of the normal wage for overtime on workdays and up to 300% of the normal wage for overtime on statutory holidays. Maternity benefits exist for female employees. Mothers are entitled to maternity benefits: a maternity leave of at least 98 days or more for each additional child (if applicable). A national age of retirement applies in China and it is larger for male employees than for women.

The annual leave for employees is set according to the employee’s seniority. Those who have worked for at least 20 years are entitled to the largest amount of days of annual leave: 15 days. Maternity benefits exist for female employees.

Our law firm in China can help you hire employees and manage any existing employment agreements. You can also contact our Chinese attorneys if you need help with other legal matters.