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China Labor Contract

China Labor Contract Draft Service  
Hotline: 86-755-82143512,

A China labor contract has to set terms and conditions relating to the weekly or monthly amount of working hours, the probation and termination period, overtime payment and holidays and further details as salary or the exact title of the job. An employer can set own conditions and particulars but they must not fall below the minimum requirements of the Employment Act. Before the recruitment, the foreign business owners in China need to ask the professionals (China lawyer) for help to sign a China labor contract.

Required Content of China Labor Contract
Article 19 of the Labor Law of the People's Republic of China defines the content required to be defined by labor contracts. Although they can contain other requirements and clauses, a Chinese labor contract must, at minimum, include the duration of the contract and a time limit during which the labor contract is in force. It must define the work clearly and specify both labor conditions and labor protections. It must clearly state how much and how employees will be paid and must spell out disciplinary procedures for workers. It must also clearly define when the contract can be terminated and specify liabilities for contract violations.

China labor contract-Notice of termination
The usual period when a notice of termintion has to be handed in by either the employer or the employee, depends on the duration of employment. If not stated differently in the contract, the periods according to which the notice of termination is related are:
1. Employed for less than 2 years (4 weeks notice)
2. Employed for 2 – 5 years (6 weeks notice)
3. Employed for more than 5 years (8 weeks notice)

Probation period of China labor contract
During the probation period, which is set individually by the employer, the employee can be dismissed without notice. The same applies to termination on the side of the employee. The probation period is usually between 1 and 6 months and the dismissal has to be justified. If a dismissal on the side of the employer is given after this period, and is not due to misconduct of the employee, the latter is entitled to layoff benefits. The basis on which the amount of days paid is calculated, is the same as for the probation period (employed for less than 2 years/from 2-5 years/for more than 5 years).

China Labor Contract-Overtime Pay
Overtime pay must not go below 1.5 times the hourly rate on a normal working day, 2 times on a rest day and 3 times on a public holiday. The total amount of hours of overtime per month must not exceed 104.

Labor contracts play an important role during the management of the companies, thus the business owners need to take it serious. It’s necessary to ask China lawyers for help, since they have a good knowledge of China labor law. Tannet Corporate Formation and Document Processing Service Center specializes in business outsourcing service, including trade contracts, employment agreements, L/C, L/G and other related documentation. Interpretation and translation services are also available.

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