Employment/Labor Contract: Employer and employee are required to enter into a written employment contract but an oral employment contract is also enforceable when an employment relationship has actually been formed by conduct.
Employment contracts must include the following basic mandatory terms:
1. the name, domicile and legal representative or main person in charge of the employer;
2. the name, domicile and number of the resident ID card or other valid identity document of the employee;
3. the term of the employment contract;
4. the job description and the place of work;
5. working hours, rest and leave;
6. labor compensation;
7. social insurance;
8. labor protection, working conditions and protection against occupational hazards; and
9. other matters which laws and statutes require to be included in employment contracts.
Term of Employment Contracts
Employment contracts can apply to a fixed period, an open period, or just to a specific project.
Normally, an employment contract has a trial period of no more than six months. During that period, the employer may terminate the contract if the employee is found to be unsuitable for the work he is doing.
Working Hours
According to the Labor Law, All employees work eight hours per day and generally no more than 44 hours per week. Employers have to give employees at least one day off per week.
Overtime
Overtime must be negotiated with the relevant union, but normally not more than one hour per day is allowed.Employees working under the comprehensive working hours system or the flexible working hours system are usually not entitled to overtime payment.
Social Insurance
Employees are required to participate in social insurance scheme. And social insurance scheme consists of five funds:
1. Old Age Pension Insurance;
2. Basic Medical Insurance;
3. Occupational Accident Insurance;
4. Unemployment Insurance;
5. Maternity Insurance.
Employers and, in some cases, employees are required to make contributions to these funds, in accordance with rates determined by local authorities.
Confidential information
The law provides that an employer may require an employee to keep business information confidential as a term of their contract. Damages are available to the employer if the employee breaks this or any other term of the contract.
Termination
There are different rules for the parties to terminate the contract.
Disputes
There are three ways to solve disputes between employers and employees: mediation, arbitration and litigation.
Contact Us
If you have further queries, don’t hesitate to contact Tannet anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com or www.tannet-group.net, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com.
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