Probation Period

Last updated: Jan 2021
The HR Regulations Guide for Foreign Companies in China

If you think that China does not attach importance to labor laws and labor rights, then think again. China has many general national labor laws, which are periodically adjusted, as well as long lists of provincial laws and supplementary regulations.

PTL Group’s vast expertise includes employment services in China. We want to share our important knowledge with you. The following article discusses periods of probation.

Read more about HR management and recruitment in China.

Probation Period

The duration of the probation period

The probation period allows employees to learn, specialize and professionalize on the job. During this period, the employer also examines the employee’s chances of success, and evaluates the integration of the probationary employee. The law defines that an employer can only impose one probation period on an employee. Its duration changes according to the contractual employment term. In some cases, it is never imposed at all:

The probation period duration has to be clearly and explicitly mentioned in the labor contract. It is mostly recommended to set the maximum duration stipulated by the law. This is because the extension of the initial probation period could be quite complicated, so it’s better to save this trouble and give yourself enough time. Once you decide to go on with the probationary employee, there is no “second chance”.

The compensation of the probation period

The employee’s wage during the probation period shall not be lower than the minimum wage for the same position by the same employer, nor may it be lower than the minimum wage of the locality where the employer is located. In any case, the wage shall not be lower than 80% of the wage stipulated in the labor contract.

Employment termination by the employer during the probation period is not as simple as people may think. The employer still needs to prove that the employee does not meet the requirements of the position and/or the terms of employment. If an employer dissolves a labor contract during the probation period, it still needs to conduct a proper termination process, including an evaluation meeting with the employee, trying to reach an understanding between the parties. However, the employee can still challenge the validity of the termination reasons).

Last updated: January 2021

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