Choi & Partners · PRC law firm since 1997 · Head office ShenzhenEnglish · 中文 · 日本語 · 한국어
China Company Incorpby Choi & Partners
Your company as an employer

Chinese labour law: what foreign employers must get right

Chinese labour law strongly protects employees. Employers must sign a written contract within one month of hiring or pay double wages, enrol staff in social insurance, and can only dismiss on grounds set out in the Labor Contract Law. Getting contracts and the employee handbook right from day one prevents most disputes.

The rules that matter most

Written contracts

Sign a written employment contract within one month of the start date. After that, the employer owes double wages until it’s signed, and after a year without one the employee is treated as having an open-ended contract.

Probation

Probation length is capped by contract length, up to six months for contracts of three years or more. Probationary pay must be at least 80% of the agreed wage and not below the local minimum wage.

Fixed-term and open-ended contracts

After two consecutive fixed-term contracts (or 10 years’ service), the employee can generally insist on an open-ended contract.

Social insurance and housing fund

Employers must enrol staff and contribute to pension, medical, unemployment, work-injury and maternity insurance, plus the housing fund. Rates vary by city; see payroll.

Ending employment

Dismissals are only lawful on the grounds listed in the Labor Contract Law, such as serious misconduct, proven incompetence after training or reassignment, or major changes in circumstances. Wrongful termination usually costs double the statutory severance. See severance pay in China.

The employee handbook

Rules on attendance, discipline and conduct are only enforceable if they’re reasonable and adopted through the proper consultation process and communicated to staff. A good handbook is the basis for any later disciplinary action.

Our employment team drafts contracts and handbooks and advises on terminations.

Reviewed by Choi & Partners · 3 October 2026. This page is general information, not legal advice.
Request a quote

Talk to a lawyer about chinese labour law: what foreign employers must get right.

You'll receive a fixed written quote and a timeline. There's no sales call unless you ask for one.

WhatsApp or WeChatAdd your ID to the form and we'll reply there
Head office2401, Block A, Chuangyi Kexing Technology Park, Nanshan District, Shenzhen
LanguagesEnglish · 中文 · 日本語 · 한국어
What do you need?