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Saturday, May 2, 2026

In review: entering the employment relationship in China - Lexology

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Basics of entering into an employment relationship

i Employment relationship

In China, employers must execute a written employment contract with all full-time employees within one month of the commencement of employment. Article 12 of the 2008 Labour Contract Law provides three types of permissible employment contracts: fixed-term labour contracts, non-fixed-term labour contracts and specific-task labour contracts, which expire upon completion of agreed assignments. Failure to enter written employment contracts will result in corresponding penalties and sanctions, including, but not limited to, a double monthly wage penalty.

For part-time employees, verbal employment agreements are acceptable. However, part-time employees need to be paid on an hourly basis and may work no more than four hours a day and 24 hours a week. In the absence of a written contract and proper attendance record, disputes arise as to whether an employment relationship is part-time or full-time. Ambiguity about whether a contract for employment is full- or part-time may have an adverse impact on employers. Therefore, it is highly recommended that written contracts be executed for both part-time and full-time employees.

It is crucial that employment contracts enumerate each and every aspect of employment terms. The 2008 Labour Contract Law and the 2013 Judicial Interpretation on Applicable Laws in Terms of Trial and on Labour Disputes Cases mandate the following compulsory information and...



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