A labour contract or contract of employment is a kind of contract used in labour law to attribute rights and responsibilities between parties to a bargain. The contract is between an "employee" and an "employer". A contract of labour usually defined to mean the same as a "contract of service". A contract of service has historically been distinguished from a contract for the supply of services, the expression altered to imply the dividing line between a person who is "employed" and someone who is "self-employed".
Under China’s labour laws, China-based employers are required to have written employment contracts with all of their full-time employees. At minimum, that employment contract must contain the following mandatory provisions:
1. Basic information about the employer and the employee;
2. The explicit term/duration of the employment contract;
3. A description of the work the employee will be performing;
4. The place of work;
5. The working hours;
6. Rest and leave time;
7. Wages;
8. Social insurance;
9. Applicable labor protections and labor conditions and protection against occupational hazards.
Procedures of Requirements
The first condition that should be met when employing Chinese employees is for a written labour contract to be completed within one month of the commencement of the employment relationship. If this condition is not observed, under the terms of the Labour Contract Law, an employee may claim double salary for each of the months worked without a written labour contract after the first month. If the situation persists for a period of more than one year, the company is deemed to have provided the employee with an open-term contract.
Secondly, when employing Chinese employees the contract should be drafted in the Chinese language. It is acceptable to include an English translation along with the Chinese text, but note that the Chinese version will take priority in case of any dispute. Therefore, it is advisable that contracts are either drafted in Chinese using a legally-trained professional before translating into English, or drafted in English and then translated into Chinese by a legally-trained professional.
Every local Labour Bureau has a template for a standard labour contract, but it is in Chinese only. It is possible to use this template for all the contracts you enter into, however we would not recommend this in every circumstance. A template designed with specific corporate requirements will offer more protection. We would suggest combining a standard template with a labour contract used in other countries where your company has large operations.
This document should be shown to a professional trained in Chinese Labour Law to add, remove or amend clauses as necessary. Certain clauses inserted into a draft labour contract may be inadmissible under Chinese law. Including such clauses in the final version of a labour contract will only provide a false sense of secure.
Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.
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