How to Sign a Labor Contract in China

Your new employment offer from a Chinese firm is fantastic news. Finally, you'll need to sign an employment contract with your new company. Before signing your job contract, there are certain crucial items you should watch out for.

Employment Agreement Varieties

Make sure you choose the proper sort of employment contract from the two available in China.

When an employer and employee officially agree upon a specific termination date for an employment contract, they are said to have entered into a "fixed-term employment contract."

In a non-fixed-term contract, the employer and employee do not agree to a specific termination date for the work relationship.

Terms of Employment

It's important to go through the employment contract thoroughly before signing it. Many Chinese organizations may engage you on a trial period which lasts from 1 to 6 months, which implies that during this time, it’s pretty simple to end the contract without any fines. On the other hand, it is far more difficult for an employer to terminate an employee who is on a fixed-term contract.

Details Regarding the Business and YOU

Verify that Party A is identified as the company's full legal name, its address, and the name of the company's legal representative or a senior management in the Chinese employment contract you sign. As Party B, however, you must provide your entire name, current address, and identity number in the contract.

If you were given a translated or English copy of the contract, make sure to request a copy in Chinese. The Chinese version of the contract is usually the authoritative one. Seek the assistance of a native Chinese speaker to check that the details of the contract, such as pay rates and times, length of the contract, termination grounds, and personal information, are all reflected accurately in the Chinese version.

Position Synopsis

Your job description and the specific tasks you must do to help the organization achieve its objectives should be spelled out in detail in the contract. You have the right to ask that the terms of your employment, including your obligations, be better defined in the contract.

A Visa to Work

The contract should include whether the firm would provide sponsorship for your work visa in China, since this is a legal requirement for any foreign national seeking employment in the country. It is recommended to bring up the topic of obtaining a work visa during the interview. You'll need a master's degree from an accredited Chinese institution or two years of relevant job experience before applying for a work visa in China. Some international college grads with a bachelor's degree or higher from a Chinese university may now apply for a work visa in special economic zones like the Shanghai Pilot Free Trade Zone.

Payscale Specifics

The income you may expect to get each month should be spelled out in detail in the contract. Companies in China often provide you with the amount of compensation before tax, so be careful to ask the employer about your net income after tax. In addition, the contract should include the monthly pay date. It is customary for Chinese businesses to pay the wage for the 13th month just before the Chinese New Year, so you should inquire about it. Whether or whether the employer is responsible for the 13th month's wage should be spelled out in writing.

Bonuses \sDepending on the employment position you occupy, you will have various bonus schemes. If a bonus was discussed and agreed upon during the interview, the terms of that bonus and when it will be paid should be spelled out in your employment contract.