Getting Familiar With The Different Aspects Of Employment Contracts In China

The most important aspect of hiring employees in China is to have a properly drafted employment contract. This is true irrespective of whether an organization is looking to hire foreign employees or local professionals. Given the relatively complex labor laws in the country and the higher liability on employers, the top employer of record firms in China advise their clients to gain a thorough understanding of the various aspects of employment contracts. This helps in ensuring that foreign employers are able to prepare a comprehensive employment contract for hiring the members of their workforce in China.

Important Things To Include In The Contract

The employment contract is a sort of agreement between the employer and the employee and needs to be drafted in writing. The contract comes into effect only after both the parties involved sign the contract, an original copy of which is kept by them both. In addition, the following clauses, as suggested by the leading PEO firms in China, must be included in such contracts.

Information About The Employee And The Employer : This includes the name, living address, and ID number, etc for both the employer and the employee. In case the ID number cannot be provided for some reason, the number of any other valid ID proofs can be used.

Employment Period : It is mandatory for the employment contracts to include complete details of the period for which an employee is being hired by the employers.

Remuneration : As the name suggests this clause should include detailed information about the basic salary and benefits being offered to the employee by the employers. It should also include the details of any additional perks, bonuses, commissions and allowances that the employees have been promised by the employers.

Responsibilities: The clause should provide a general description of the job and responsibilities that the employees would be expected to handle during their tenure of employment with an organization.

Details Of Working Hours And Leaves : According to the experts from the top PEO firms in China, the employment contract should clearly define the weekly working hours along with all the leaves that the employees are entitled to during their tenure with an organization.

Safety Aspects Related To Work : The contract should also provide information about the work environment, the risks involved for the employees and the occupation safety and hazard prevention strategies being implemented by the employers to mitigate these risks. It should also include a statement confirming that the social benefits for the employees will be contributed by both parties as per the provisions of the Chinese labor law.