In China employment relationships are mainly governed by the PRC Labour Contract Law and its implementation regulations, in combination with further state-level, regional and local related rules and regulations. The legislation applies to all companies located within Mainland China, including Foreign Invested Enterprises and covers both foreign and Chinese employees.

In this publication the different types of employment contracts related to individual, collective and parttime employment are introduced, as well as the requirements for conclusion of these types of contracts. To translate law and regulations into business practice, examples of provisions which can be included in individual employment contracts drafted in accordance with the PRC Labour Contract Law are provided. Each provision is substantiated by additional information on the purpose of the provision, the meaning and implication of its content, and further information on the background to place the provision in a broader context.

Work placement in China is common. In this publication the structuring of work placement arrangements between the hiring company, staffing firm and dispatched employee is discussed in detail, as well as restrictions applicable to work placement, remuneration and return of dispatched workers.

The PRC Labour Contract Law requires employers to draft and implement an employment handbook within their organizations, which lists the rights of the employees, and specifies employment obligations. Employment handbooks should be regarded as an extension of the employment relationship in which the company clearly communicates the companies’ policies to its employees. In this publication focus goes out to aligning the provisions included in the employment handbook with the provisions in the contract, ensuring compliance with the PRC Labour Contract Law.