Foreign-invested enterprises are entitled to determine their institutional settings and needs for personnel and to recruit employees in China on their own or entrust recruitment to professional staffing agencies. Foreign-invested enterprises shall sign a written Labor Contract with any employed personnel.The labor contract must include the following items: the name, domicile, legal representative or the person incharge of the employer; the name,address and resident ID or other valid ID number of the employee; the term of the labor contract, the content and place of work, working hours, rest and holidays,labor remuneration, social insurance,housing provident fund, labor protection,working conditions, protections against occupational hazards, etc. In addition to the essential content listed above, the employer and the employee are also entitled to include the probation period,training for the employee, the employee laborer's obligation of confidentiality,supplementary insurance and welfare treatment, and other matters on the labor contract. Labor contracts are divided into fixed term contracts, open-ended contracts, and those whose terms are based on the completion of certain tasks. For labor contracts whose terms exceed three months but are less than one year, the probation period is not to exceed one month; for labor contracts whose terms are more than one year but less than three years, the probation period is not to exceed two months; for labor contracts with a fixed term of no less than three years or labor contracts with no fixed term, the probation period is not to exceed six months. In addition, foreign-invested enterprises are entitled to dispatch labor for temporary, auxiliary, or substitutable posts of duty. Dispatched labor shall account for no more than 10% of the total labor.
Updated on Jan 22, 2024
Source: Foreign Investment Guide of the People's Republic of China (2023 Edition)
