A Detailed Overview About Chinese Employment And

Labor Laws

While operating in the vast Chinese economy, you have to take care of the Chinese

Employment and labor laws. If you fail to meet these laws or regulations, your company’s

future might be bleak in the nation.

The country might even blacklist you to operate again in the entire nation. Thus, to be always

updated with the latest rules related to employment and labor laws in China, you should take

the help of professionals.

For instance, to set your company compliance straight without any fault, hire the lawyers well-

versed in the employment and labor laws in China from this company.

Key Points On Labor Laws In China

Offer letters and oral commitment are not significant

You have to get the legal contracts signed in China for laborers to be working for you. There is

no value of the oral or the offer letter commitments.

Therefore, any legal case filed based on an oral or offer letter would be null and void. Then,

both parties won’t be liable for any duty towards their employer-employee relationship.

Thus, it’s a must to get the contracts signed by the laborers when you hire them in China.

The amount for severance pay are different

It’s not necessary that the senior official would always get higher pay than the subordinate in

case of the severance or termination of the contract. The junior employee can also get higher

severance pay. It depends on many other legal factors best explained by the labor law experts at

IPO Pang.

Key Notes On Employment Contracts In China

Three different types of contracts

China has three various employment contracts: a fixed-term, term that ends with the

completion of the assignment, and open-ended. Fixed-term is basically like a bond that the

employee signs upon his or her recruitment with the company.

After the fixed-term of two years, the employee has to convert it into an open-ended contract.

Open-ended contracts give an employee the full power to leave or exit the company as and

when he or she seems fit.

The term that ends with completion on the assignment contract has no obligation on either

party once the job is done. The employer-employee relationship ends with no future

commitment as the assignment is done on time.

Probationary period terms

With an employment contract of 3-12 months, the probationary period cannot be more than a

month. Where the same contract is of 12-36 months, the probationary period cannot be more

than two months. However, when the same employment contract is open-ended or is intended

to go on for more than 36 months, the probationary period cannot be more than six months.

Conclusion:

Check https://ipopang.com/ and hire the most professional lawyers who educate you about the

country's latest employment and labor laws.

Know more Information about Employment Law In China