What terms and conditions must I include in a written PRC labour contract?

You are required to specify the following terms and conditions:

  • Name, domicile and legal representative or main person in charge of your company
  • Name, domicile and ID card number (or other valid identity document) of the employee
  • Term of the contract
  • Job description and place of work
  • Working hours, rest and leave
  • Remuneration
  • Social insurance and
  • Labour protection, working conditions and protection against occupational hazards.

What is the penalty if I fail to include any of the above terms and conditions?

There is no financial penalty for a breach of this provision. However, the labour authority will order you to supplement the missing terms and conditions if this breach is exposed to the labour authority. Furthermore, you will be liable to compensate any damages suffered by the employee due to such a breach.

Can I include other provisions in the contract?

Yes you can. Such clauses would generally include the probationary period, training, confidentiality, non-competition and additional benefits.

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