In China, a foreign-funded enterprise shall sign a labor contract when recruiting an employee, and a contract of service with the service provider if labor service is used. The enterprise shall not only abide by the Labor Law, the Labor Contract Law and other labor laws and regulations, but also comply with the provisions of the local governments, especially the provisions of the provincial labor and social security departments. Since such provisions at different places are not the same, we take provisions in Beijing as an example.
1. Employment
To employ workers with Beijing urban household registration, the enterprise shall report to local district or county employment service center. As for the labors with Beijing rural household registration, the enterprise shall go through the same procedures with relevant certificate and documents.
To employ migrant workers, the enterprise shall acquire a work permit in the employment service center of the district or county where the enterprise locates. To employ a foreigner or a person who comes from Taiwna, Hong Kong or Macao, the enterprise shall apply to Beijing Labor and Social Security Bureau for the work permit for such person, and can only commerce employment upon approval.
2. Dismission
The labor contract is terminated when the term of the contract expires or termination conditions agreed upon by both parties are satisfied. A labor contract may be extended if both parties reach a consensus through consultations. In the process of fulfilling the contract, both parties have the right to terminate the labor contract under statutory circumstances that the labor contract may be terminated.
3. Economic Compensation and Damages
The employer shall pay economic compensation in accordance with the relevant provisions of the State and Beijing if it terminates the labor contract not due to the employee’s fault. Either the enterprise or the employee who violates the Labor Law, Labor Contract Law or the labor contract and thus causes economic losses to the other party shall be liable for the compensation.
4. Working Hours and Holidays
Employees under the standard working hours system shall work eight hours a day, namely forty hours a week. With approval of the Labor and Social Security Bureau, the enterprise may carry out a work system based on the comprehensive calculation of man hours or without fixed man hours. The New Year’s Day, the Spring Festival, the Tomb Sweeping Day, the International Labor Day, the Mid-autumn Day, the National Day and Dragon Boat Festival are national statutory holidays.
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