Under Chinese labor laws, employees who have worked continuously for one year are entitled to paid annual leave (年休假). The statutory vacation period, based on years of service, is as follows:

• More than 1 and less than 10 years service: 5 days vacation
• More than 10 and less than 20 years service: 10 days vacation
• More than 20 years service: 15 days vacation

“Years of service” is the employee’s total years of employment with anyone. This means your new employees may be entitled to paid annual leave during their first year of employment with you as well. The number of paid vacation days your new employee is entitled to is calculated using the following formula: (the remaining calendar days during the calendar year the employee started his/her employment 365) the number of statutory vacation days the employee is entitled to under the law (as stated above, this depends on the total number of years the employee has worked).

If you offer more vacation time than the statutory minimum — usually by specifying the more generous vacation time in your rules and regulations — you are legally mandated to provide the extra vacation time you offered.

However, under the following circumstances, the employee is not entitled to his or her annual vacation time in the current year:

• The employee has taken summer and winter breaks longer than the statutory annual leave
• The employee has taken personal leave in excess of 20 days
• An employee with more than 1 and less than 10 years service has...

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