Labour Regulations in China
Labour Regulations in ChinaUpdated on Wednesday 20th July 2016
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The Labour Law of the People’s Republic of China is the one regulating all aspects regarding employment, labour contracts, wages, working hours and other employee’s rights.
The Chinese employment law has yet to reach international labour law standards and employees lack the right to organize trade unions as they please or bargain with the employers. Nevertheless, the main labour law in China strives to protect the rights and interests of the employees and promote economic development in the country.
Chia is a preferred business location for many international companies, especially because of the lower labour costs in fields like manufacturing and industry. Foreign investors in China who want to hire local employees will need to comply with all of the current provisions of the labour law.
General employment conditions in China
Workers in China have equal employment rights and must be remunerated for their work. They are entitled to holidays and annual leaves and special maternity benefits. Workers have the right to participate in trade unions and organize them, within the scope of the law.
The labour contract is the basis for any employment relation in China. It is concluded in writing and contains the following information:
- the type of work and working conditions;
- work safety and protection;
- grounds for termination;
- liability in case of contractual breaches both from the employer and the employee.
The maximum term for a probation period is six months and it can be stipulated in the labour contract. Employee dismissals in China can be made according to the legislation in force.
Employee benefits and protection in China
Under the Chinese law, the maximum working hours per day is eight or an average of 44 working hours per week. The employer must guarantee at least one work free day per week and must observe all the mandatory holidays: New Year’s Day, the Spring Festival, the International labour Day, the National Day and other holidays, as applicable.
Special considerations are taken in case of female and minor workers. Female employees are entitled to at least 90 days of paid maternity leave. Women are also entitled not to participate in grade III and IV of physical labour during pregnancy and while breastfeeding. Minor workers also have special rights regarding extensive physical labour.
Workers in China enjoy social insurance benefits. The employer must contribute almost 20% of the basic payroll to social security. The rates many vary in certain Chinese cities.
Labour disputes in China can be solved through litigation but preferred methods include arbitration and mediation.
Our law firm in China offers specialized labour law consultation and legal counselling for foreign investors in the country who want to hire employees. You can contact us if you have any questions about employment in China.