Your company as an employer
What a Chinese company owes its staff: contracts, social insurance, termination and severance.
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.
Severance pay in China: how it's calculated
Statutory severance in China is one month's wages for each full year of service, with half a month for service under six months. For high earners, the monthly figure is capped at three times the local average wage and the years are capped at 12. Unlawful dismissal usually costs double.
Talk to a lawyer about your company as an employer.
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