1. Human Resource
Management
Lecturer: Sherman Chui
For:

2. 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

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

4. 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

5. 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

6. 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

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

8. Legal Age of Marriage

9. Begin Age of Adult Workers18 16
Non-adult Worker
Adult Worker

10. 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

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

12. 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

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

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

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

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

17. 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

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

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

20. Discretionary Benefits
Allowance
Bonus …

21. 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