16.07.20 Employment Law
1 min to read

Dealing with employment law in China

This handbooks aims at describing the basics of employment laws and regulations in China

Labor contract & Employee Handbook

  •  Is it compulsory to sign a labor contract?
  • Which information must be provided in the labor contract?
  • Is it possible to set forth a probation period?
  • How to draft a non-compete clause?
  • How is seniority calculated?
  • What is the use of an Employee Handbook?

Employment – General rules

  • What are the mandatory working conditions for employees in the PRC?
  • How to hire an intern?
  • How to work with consultants/freelancers?
  •  What is a hukou and how can my Chinese employees obtain it?

Foreigners employment in China

  • What are the special requirements for a foreign employee to be hired by an employer in China?
  • What is the procedure for a foreign employee to obtain a Work Permit and a Residence Permit?
  • What are the risks of hiring foreigners without work permits?
  • Can a foreigner sign several part time labor contracts?

Labor dispatch

  • What is labor dispatch?
  • What are the restrictions of labor dispatching?
  • Which issues arise with indirect employment?

Working hour systems

  • What are the main working hour systems applied in China?
  • How to deal with the overtime work?

Remuneration of employees

  • How to calculate a net salary in China?
  • How to calculate income tax for employees?
  • Is it compulsory to pay social charges for employees in China?
  • What other benefits can be granted to employees and are they subject to income tax?
  • Which documents shall be prepared to prove payment of salary?

Managing employment disputes and terminating employment contracts

  • How to resolve labor disputes in China?
  • Under which circumstances can an employer dismiss an employee?
  • How to dismiss an employee with poor performance?
  • Under which circumstances is an employee entitled to financial compensation?
  • How is financial compensation calculated?
  • What are the rules applying to mass layoff in China?
  • Is it possible to unilaterally terminate an employee because the company is facing financial difficulties?

Collective contracts

Trade unions

  • Who shall contribute to the trade union’s funds?
  • In which situations shall the trade union be involved?

To know more, download our legal handbook related to employment law