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PRC Labour Law - Bitesize

27 February 2013
Mayer Brown JSM Newsletter

Conclusion of Employment Contract (cont'd)

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 and it would not necessarily invalidate the employment contract. However, you may be ordered to supplement the missing terms and conditions if this breach is brought to the attention of the labour authority. Furthermore, you will be liable to compensate for 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.

In China, what is the typical length of a labour contract?

You can sign a fixed-term contract, an indefinite contract or a contract with a term to expire upon completion of a certain job.

Both the fixed-term contract and the indefinite contract are commonly used in China. The contract with a term that expires upon completion of a certain job generally applies to employees whose jobs or duties are performed on a project basis.

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