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Labor Contracts in Chengdu

Labor Contracts in Chengdu are quite vital for employees and employers to understand. Only in this way can an investor to do business in Chengdu better.

Labor Contracts in Chengdu - Forms of Contracts in Chengdu
Labor Contracts in Chengdu mainly include: fixed-term, open-term or variable-term, depending on when a project ends.

Labor Contracts in Chengdu - General Information
When you hire people in Chengdu it is mandatory to give them an employment contract. China’s current Labor Contract Law, which became effective in 2008, specifies the rights and obligations of the contract parties and therefore, labor contracts have become more comprehensive and formal. In this week’s post we look deeper into what kind of contracts there are, of which parts a contract consists, contract termination and the right for employees to form unions. We leave social welfare benefits aside, as we discussed them in an earlier post.   

Labor Contracts in Chengdu - Specific Requirements
Labor Contracts in Chengdu should have at least to include:
-  Name, domicile and legal representative or main person in-charge of the Employer
-  Name, residential address and number of the resident ID card or other valid identity document number of the worker
-  Term of the labor contract
-  Scope of work and place of work
-  Working hours, rest and leave
-  Labor compensation
-  Social insurance
-  Labor protection, working conditions and protection against occupational hazards
-  Other issues required by laws and regulations to be included in the labor contract.

Labor Contracts in Chengdu- Three situations in which an open-term contract should be concluded
a) If the employee has been working for the employer for ten (10) consecutive years, an open-term contract should be concluded.
b) Before 2008, it was not mandatory for Chinese employers to conclude labor contracts. Upon mandated implementation of labor contracts, the employer is essentially introducing the labor contract system to the employee for the first time. In the case of state-owned enterprises, a re-concluding of labor contracts as restructuring is practiced. Under these circumstances, if the employee has been working for the employer for ten (10) consecutive years and is less than 10 years away from his legal retirement age, an open-term contract should be concluded.
c) For start-up companies, it is crucial to keep in mind that an open-term contract must be concluded after the second renewal of a fixed-term contract. For example, when Employee A signs a 1-year contract on August 1st, 2013, after the first 1-year renewal on August 1st, 2014, the next renewal on August 1st, 2015 should be an open-term contract.

Labor Contracts in Chengdu- Situations in which contract termination is prohibited
a) If the employee is suspected in contracting disease, diagnosed or under medical observation due to hazardous work related activities.
b) If the employee has lost or partially lost his working abilities due to hazardous work related activities. i.e. injuries and etc.
c) If the employee is still in his or her prescribed recovery period. For example, when a female employee is in her pregnancy, confinement or nursing period.
d) If an employee has been working for 15 consecutive years and is less than 5 years away from his or her retirement.

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