Human Resource Management Lecturer: Sherman Chui For: 2018-2019-1

China Labor Law China Labor Law & China Labor Contract Law Termination & Probation Economic Compensation Overtime Pay Holidays & Paid Leaves and Non-paid Leaves Stationary Benefits

<China Labor Law> Jan 1, 1995 <China Labor Contract Law> Jan 1, 2008

Labor Contract Written labor contract within 1 month of employment. Oral agreements can be allowed for part time workers. ( who works less than 24 hours a week) No labor contract: 2 times of salary as compensation. maximum 1 year

Labor Contract Fixed Period Contract The contract has specified the years of employment agreed by both parties Non Fixed Period Contract (Long Term Contract) If either of the following situation happens, the contract will turn into a fixed contract: Contract is renewed continuously for 2 times (i.e. altogether 3 contract terms is completed) Worker has worked for an uninterrupted terms of 10 years Economic compensation calculation is different for fixed period and non fixed period contract

Termination Employee can terminate the contract by written notice to the employer 30 days in advance 3 days in advance during probation period Employer can terminate the contract if Mutual agreement between employer and employee is made Employee works outside office hours without informing the contractual employer Employee has committed a criminal act

Termination Due to Retirement Employee can also terminate the contract when he/she reaches the retirement age. 60 55

Legal Age of Marriage 22 20

Begin Age of Adult Workers 18 16 Non-adult Worker Adult Worker

Probation Period Work Period Probation Period ≤ 3 Months Depends on the period of the contract Work Period Probation Period ≤ 3 Months No Probation Period 3-12 Months ≤ 1 Months 1-3 Years ≤ 2 Months ≥ 3 Years ≤ 6 Months

Probation Period No Probation Period Work Period ≤ 3 months 3-12months 1-3 years ≤ 6 months ≥3 years Probation Period Work Period

Severance Pay / Economic Compensation If the employer has to terminate the contract before the contractual period, economic compensation is required: Base Pay : Average salary of past 12 months x no. of years of service or Employee’s basic salary x no. of years of service For Fixed Period Contract : Base Pay X remaining contract period in years For Non-Fixed Period Contract : Base Pay X Max (years of service, 12) Less than 6 months : consider as 0.5 year More than 6 months less than 1 year : consider as 1 year

Working Hours ≤ 8 hours/day ≤ 44 hours/week Day off ≥ 1 day/week

Overtime Pay Weekdays: 1.5 times hourly rate Weekends: 2 times hourly rate National Holidays: 3 times hourly rate X Overtime hours

National Holidays:11days New Year Spring Festival Qing Ming Festival Labor Day Dragon Boat Festival Mid Autumn Festival National Day 3 1 3 1 1 1 1

Paid and Non-Paid Leaves Wedding Leaves Basic : 3 days Maternity Leave

Funeral Leave Annual Leave Immediate family only No fixed number of days granted Normal practice is 1-3 days Annual Leave Entitled for employee works continuously for no less than 1 year. Number of Paid Leave depends on the service period 1-10 years : 5 paid leave days per annum 10-20 years : 10 paid leave days per annum 20 years or more : 15 paid leave days per annum

Non-Paid Leave Sick Leave (Partially Paid) Casual Leave

Social Insurance Endowment Insurance Medical Insurance Unemployment Insurance Work-related Injury Insurance Maternity Insurance

Discretionary Benefits Allowance Bonus …

Conclusion China Labor Law & China Labor Contract Law Labor Contract Termination & Probation Economic Compensation Overtime Pay Holidays & Paid Leaves and Non-paid Leaves Stationary Benefits