Our video in this new series focuses on contractual considerations while hiring in China and the UK.
Episode 1: Do we have to sign employment contracts in writing with every employee? What if we have not done this?
A firm understanding of China’s laws and regulations related to Labor Law is essential for British and Irish investors who want to establish or are already running foreign-invested entities in China, as well as for local managers and HR professionals who may need to explain complex points of China’s labor policies.
While the overall process for hiring people in China does not differ much from elsewhere in the world, there are a number of points that require special attention. For example, all directly hired employees must be given a written contract within one month of hiring; if not, the employee is entitled to double wages. It is important to mention that electronic labor contracts are regarded as written contracts as well.
For the period within one month of the employment, if the employee refuses to conclude a written contract with the employer, the employer should terminate the employment relationship with the employee and notify the employee in writing. The employer shall not be required to pay any monetary compensation to the employee but shall pay the employee for his/her actual working time.
This series concentrates on the UK-China business angle. Every week, we will add a new video that answers some of the most frequently asked questions about employment contracts in China and the UK. Each video answers the same issues from both the China and UK perspectives.
Key insights are provided by, Donfil Huang, Legal Advisory Manager at Dezan Shira & Associates, and Nicholas Lakeland, Employment Partner at Laytons.
If you have any questions about employment contracts in China or the UK, reach us at UK.Ireland@dezshira.com
10 Things Businesses Need to Know When Setting Up a Company in China and the UK: Episode 4
10 Things Businesses Need to Know When Setting Up a Company in China and the UK: Episode 3
10 Things Businesses Need to Know When Setting Up a Company in China and the UK: Episode 2
10 Things Businesses Need to Know When Setting Up a Company in China and the UK: Episode 1
China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done so since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at firstname.lastname@example.org.
Dezan Shira & Associates has offices in Vietnam, Indonesia, Singapore, United States, Germany, Italy, India, and Russia, in addition to our trade research facilities along the Belt & Road Initiative. We also have partner firms assisting foreign investors in The Philippines, Malaysia, Thailand, Bangladesh.