Chinese labor laws can be confusing for foreign employers. On top of language barriers and cultural gaps, the frequently changed regulations make it more difficult for foreign employers to deal with the matter effectively.
Read more about PTL Group’s HR management and recruitment services in China.
The Ten Commandments of HR Management in China
Here are some rules that are worth remembering, especially now, when the enforcement and supervision are tightened:
1. Do not employ illegally by any means!
Make sure that all employees, including part-time employees, have a written, up-to-date valid labor contract.
2. Sign agreements with an end date
It will allow you to terminate the employment more easily, simply by not renewing the contract. However, severance payment is still required.
3. Update workers’ employment status on time
Remember to either terminate or renew a labor contract before it expires in order to avoid imposition of sanctions and prevent a situation in which employees exploit the opportunity.
4. Localize each and every labor contract
Bear in mind that labor laws vary between provinces, therefore contacts must adhere to local regulations.
5. Protect your IP
Add a non-compete clause to the contract or sign a confidentiality agreement, in the case of hiring employees who are exposed to sensitive information.
6. Have your employees sign an Employee Handbook
Craft an article of association in order to define specific regulations and complement the array of duties and rights of the employees and the employer. It is also advisable to create assessment tests, which are necessary for C&B.
7. Keep proper records
Record each employee’s leave days, sick leave and time of arrival and departure to and from work. Keep written records of every HR related issue that could support your case in the future.
8. Conduct periodic internal operational audits
To be sure that all your employment procedures and documents are properly formulated and comply with both national and local regulations.
9. Keep up-to-date with the labor laws amendments.
It could save you money! For example, in the second half of 2019, some labor laws were updated for the benefit of employers, including a 4% reduction in pension provisions.
10. Do not make decisions alone!
Especially those regarding termination of employment. Consult a professional team, who will assist, and back you up.
Last updated: January 2021
PTL Group provides comprehensive HR management services throughout the entire employee lifecycle process. Our team is working throughout China and would be happy to assist anytime, anywhere. For the most up-to-date regulations, please check in with us.