Employer in China:
from hiring to firing

01

A written contract is the employer's basic control.

The employer enters into a written employment contract no later than one month from the start of work. The contract specifies the parties, term, position, place of work, time and rest, remuneration, social insurance, conditions and labor protection.

Before release

Offer, background check, right to work and agreement of conditions

In the contract

Position, place, term, salary, schedule, vacation and social insurance

Additionally

Probation, confidentiality, IP, training and non-compete if applicable

Language

Chinese version and agreed translation; text priority is set directly

02

Probation depends on the term of the contract

The probationary period is allowed once and is limited to the term of the employment contract. For a contract shorter than three months or for a specific task, probation does not apply; For longer terms, the law sets stepped maximums.

3–12 months

Up to one month

1–3 years

Up to two months

3+ years / unlimited

Up to six months

Payment

Not below the threshold established by law regarding the agreed salary and minimum wage

03

Standard mode - 8 hours and 40 hours

Official practice is based on an eight-hour day and a 40-hour week. Non-standard or summed mode requires applicable approval. Regular overtime is limited and paid according to the rules of 150%, 200% or 300% depending on the working time and the possibility of compensatory leave.

04

Payroll varies by city

Minimum wage, bases and rates of social insurance, housing fund and individual benefits are established taking into account local rules. The employer holds the IIT, transfers the fees and stores the payroll documents.

Gross salary

Fixed and variable part, allowances and bonus

IIT

Monthly withholding and annual reconciliation as applicable

Social insurance

Pension, medical, unemployment, work injury and maternity

Housing fund

Local registration rules, base and rates

Payslip

Clear calculation of charges, deductions and payments

05

Policy works if adopted legally

Employee handbook regulates discipline, working hours, vacation, expenses, IT, data, conflicts of interest and investigations. Rules affecting significant employee interests are adopted through a prescribed consultation procedure and communicated to staff.

06

Dismissal requires a legal basis and procedure

At-will termination for an employer is not a general model. The basis, notice, consultation with the union if applicable, severance and documents must be appropriate to the specific situation. Wrongful termination may result in reinstatement or compensation.

By agreement

Written terms, payments, release and transfer of cases

At the initiative of the employee

Regular notice; separate period for probation

For violation

Proven serious violation of current policy

Without the employee's fault

Only the grounds and procedure established by law

Severance

Usually tied to length of service and average monthly earnings with legal restrictions

07

A foreigner does not start work until permission

The employer submits an application for a Foreigner’s Work Permit. The employment contract, position, location, qualifications and actual work must match the permit. After termination or change of employer, changes or cancellations are formalized.

1. 01
   Eligibility

   Age, qualifications, experience, lack of criminal record and real employer.

2. 02
   Work permit

   Application, diploma, certificate, medical examination, contract and passport.

3. 03
   Residence

   Visa and residence permit according to the applicable route.

4. 04
   Payroll

   IIT and social insurance taking into account treaty exemption.

08

Secondment does not override local responsibilities

For international transfers, home and host employer, cost recharge, payroll, PE risk, IIT, social security treaty, IP and data are agreed upon. The title of secondment in itself does not determine the legal result.

09

Labor disputes are won with documents

Most individual disputes go through labor arbitration before trial. The employer must prove the contract, policy, attendance, payroll, performance assessment, violations, notifications and calculation of payments.

10

HR compliance kit

1. 01

   Bilingual employment contract and application templates.

2. 02

   Employee handbook with proof of consultation and review.

3. 03

   Payroll, IIT, social insurance and housing fund calendar.

4. 04

   Working hours, overtime approvals, vacation and attendance.

5. 05

   Work permit process for foreign employees.

6. 06

   Performance, disciplinary and termination protocols.