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Social Insurance

Overview of Employment Contract in China

In general, there are the following kinds of employment contracts.

Employment Contract with a definite period

Employment Contract without a definite period

Employment Contract with defined work

There is an upper limit of two times to update the employment contract. If the labors expect to work continuously, the labors have to change to the employment contract without a definite period. Furthermore, if the employees work for more than ten years, it is also necessary to change it to employment contract without a definite period. However, there is no upper limit of the employment contract with a definite period in China. The retirement age for males is 60 years old and for females is 50 years old in China. And in the recent years, the retirement age is delayed in some developed areas and also will be delayed in other areas in the future. There are also some special employment contracts as follows.

・  Group Contract

・  Labor Dispatch Contract

・  Part-time Contract

The group contract means both the employers and the employees choose the represents and then negotiate the labor conditions including salary, work time and so on.

Labor dispatch contract means the contract is made between organization of labor dispatch and labors. And the possible conditions of labor dispatch are as follows based on Worker Dispatch Act from 2013.

・  Not more than six months for work

・  To do the assistance work in dispatched companies

・  To replace the labors of dispatched companies temporarily

In addition, the rate of dispatched labor should not be more than 10% of employees in one company.

Part-time contract is for the labors that cannot work over four hours averagely and twenty-four hours within one week.

 

Trial Period

Regarding of the trail period of work in China, there are the following rules and regulations based on the contract period.

Contract Period: less than 3 months

There is no trail period for the contract.

Contract Period: more than 3 months and less than 1 year

The trail period should be not more than 1 month.

Contract Period: more than one year and less than three years

The trail period should be not more than 2 months.

Contract Period: more than three years or contract without definite period

The trail period should be not more than 6 months.

The set of trail period should be just one time and the payment during trial period must be over 80% of salary and over the minimum salaries.

 

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