Employment contracts
in China.

SALARY PAYMENT IN Chinese Yuan (CNY, ¥)

CONTRACT LANGUAGES Mandarin & English

PAYROLL TAX 39.50% – 41.20%

PAYROLL CYCLE Monthly

TIME TO HIRE 12 hours

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China

Standard employment contract in China

Standard employment contracts in China include open ended (project based) contracts or fixed-term (1, 2, or 3 years) contracts. Open-ended employment contracts are going to be the most popular form of employment in China.

Alternative employment contract in China

An alternative employment contract in China is a non-fixed term, or a permanent contract. These cannot be broken up and they guarantee the employee employment for life.

Are there other types of employment contracts in China?

Chinese labor law recognizes a third category of workers, commonly referred to as ‘dispatched workers’.

Dispatched workers are employed by dispatching companies, also known as temporary work agencies, but are subject to the direct supervision and control of the end-employer.

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Your business can easily hire employees in China without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

FAQs

What are the main differences between the standard contract and the alternative contract in China?

The main difference between the standard contract and the alternative contract is the ability to terminate. A permanent contract is difficult to terminate without a serious cause, whereas the open-ended or fixed-term contract is less difficult to terminate if needed.

Which China employment contract is right for me?

The best employment contract in China to hire employees is usually the open-ended (project based) contract. This offers the best situation for both employees and employers. Employees have job security and the employer knows it will be getting a good employee and still has rights to terminate the contract if necessary and legal.

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