China Employment Guide

China is in East Asia, bordering the Pacific Ocean (east), Mongolia, Russia (north), and Vietnam, Laos, Myanmar (south). It has ~1.4 billion people (the world’s most populous); Mandarin (Chinese) is official, and Beijing is the capital. Its diversified economy has global influence in manufacturing, tech, finance and services, while agriculture still holds a share in the national economy. Labor laws (e.g., Labor Law of the PRC, Labor Contract Law) protect wages, hours, leave and social security. Standard workweek: 40 hours (overtime needs extra pay). Salaries are usually monthly. Laws cover paid annual/sick/maternity/paternity leave and protect temp/contract workers, balancing employer-employee interests for a fair, regulated labor market.

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Currency

Chinese Yuan Renminbi (CNY, ¥)

Capital

Beijing

Official language

Mandarin Chinese (Putonghua)

Salary Cycle

Monthly

Our Employment Guide in China

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Essential Components of Employment Contracts in China

Employment agreements in China must be executed in writing and signed by both parties. While the official languages are Chinese and English, contracts can be bilingual or in either language, depending on the employee's location. For instance, in Shanghai, English-only contracts are permissible with mutual consent.

Key elements that must be included in every employment contract are:

Full name of the employee
Contract start date
Duration of employment
Job title and detailed responsibilities
Standard working hours
Compensation structure, labor protection, and social insurance details
Conditions for contract termination

Companies like SailGlobal often use standardized bilingual templates to ensure compliance across different regions, minimizing legal risks.

Understanding Probation Periods in China

Probation periods in China are strictly regulated based on the total contract duration:

Contracts under one year: Maximum probation of one month
Contracts lasting one to three years: Probation cannot exceed two months
Contracts over three years: Probation period capped at six months

Local regulations may introduce slight variations, so it's advisable to consult regional labor authorities. For example, a multinational firm in Beijing faced penalties for extending a probation period beyond legal limits, highlighting the importance of adherence.

Termination during probation requires employers to provide valid justification and supporting documentation. SailGlobal's HR platform offers automated checks to ensure probation policies align with local laws, reducing dismissal disputes.

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