(Source: https://pltfrm.com.cn)
Hiring employees in China as a foreign business involves navigating a set of legal and regulatory requirements. Here’s a summary of the key requirements:
- Employment Contracts:
- Chinese labor law requires formal employment contracts with all employees. These contracts should be in written form and include terms like job description, salary, working hours, workplace, term of the contract, probation period, and conditions for termination.
- Compliance with Labor Laws:
- Employers must comply with local labor laws, which cover minimum wages, working hours, overtime compensation, statutory holidays, and mandatory breaks.
- Social Insurance and Housing Fund Contributions:
- Employers are required to contribute to China’s social insurance system, which includes pension, medical insurance, unemployment insurance, work-related injury insurance, and maternity insurance.
- Additionally, contributions to the housing provident fund are mandatory in many cities. This is a savings fund that can be used by employees for housing-related expenses.
- Work Permits for Foreign Employees:
- If hiring foreign nationals, the company must obtain the necessary work permits and residence permits. This involves a process that includes proving the employee’s qualifications and the need for foreign expertise.
- Tax Withholding and Reporting:
- Employers are responsible for withholding individual income tax from employees’ salaries and remitting it to the tax authorities. Regular reporting of taxes is also a requirement.
- Employee Handbook or Company Policies:
- While not legally required, it’s advisable to have a comprehensive employee handbook that outlines company policies, especially those related to disciplinary actions, complaints, and grievances. This helps ensure clarity and consistency in applying company policies.
- Health and Safety Regulations:
- Employers must adhere to health and safety regulations, providing a safe working environment and ensuring that employees undergo health check-ups, if applicable.
- Non-Discrimination and Equal Opportunity:
- Chinese labor law prohibits discrimination based on nationality, race, gender, or religious beliefs. Employers must adhere to these principles in their hiring and employment practices.
- Registration with Local Labor Bureau:
- Employers typically need to register employment relationships with the local labor bureau and may need to file regular reports on their workforce.
- Dispute Resolution Mechanisms:
- Employers should establish mechanisms for resolving labor disputes. This may include internal processes or reliance on external arbitration or court systems.
- Termination and Severance:
- Termination of employees is subject to strict regulations in China. Employers need to be aware of the conditions under which employees can be terminated and the severance payments that may be required.
- Consult Legal and HR Professionals:
- Given the complexities of China’s labor laws and regional variations, it’s advisable to consult with legal and human resources professionals who are familiar with Chinese employment regulations.
Compliance with these requirements is crucial to avoid legal disputes and maintain a good standing with Chinese authorities. It’s also important to stay updated on changes to labor laws and regulations, as they can frequently change.
PLTFRM is an international brand consulting agency that works with companies such as Red, Tiktok, Tmall, Baidu, and other well-known Chinese internet e-commerce platforms. We have been working with Chile Cherries for many years, reaching Chinese consumers in depth through different platforms and realizing that Chile Cherries exports in China account for 97% of the total exports in Asia. Contact us and we will help you find the best China e-commerce platform for you. Search pltfrm for a free consultation!
