Our second episode in this series highlights the key content that should be included in all employment contracts in China and the UK.
When it comes to signing an employment contract, there are a few key things that you should always include. In our latest episode, we will discuss the content that should be included in all employment contracts in China and the UK. This information is essential for both employers and employees, so it’s important to know what’s required before signing on the dotted line.
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.
Episode 2: What content should be included in all employment contracts in China and the UK?
Writing the employment contract: Key provisions
The first thing that should be included in any employment contract is basic information about the company and the employee. This includes things like the company’s name and registered address, as well as the employee’s full name, date of birth, and contact details.
Term of Employment Contact
Next, you will need to include the term of employment. This states how long the contract is for and can be anywhere from a few months to several years. It’s important to include an end date so that both parties know when the agreement will come to an end.
Then, you will need to outline the employee’s duties. This section should be clear and concise so that there is no confusion about what is expected of them. Be sure to include any specific tasks or projects that they will be working on, as well as any general duties that are part of their job description.
Place of Work
The next thing to include is the main place of work. This should be the employee’s primary office or workplace, but you may also need to include other locations where they may be required to work from time to time.
Then, you will need to specify the work hours. This includes things like the start and end times, as well as any break times and holiday entitlement. It’s important to be clear about these so that both parties know what to expect.
Next, you will need to include information about remuneration. This is typically stated as an annual salary, but it can also be hourly pay or a mix of both. Be sure to include any bonuses or commissions that may be payable as well as paid leave, sick pay, maternity/paternity leave, healthcare, or pension contributions. When stipulating the salary amount in the employment contract, remember to specify whether the amount is gross – or the net amount. If it is the gross amount, normally such amount will be subject to deduction of individual income tax (IIT) and social insurance premium; if it is a net amount, you must ensure that the employee will receive the net amount after IIT and social insurance premium deductions.
Then, you will need to include information about social security, especially in China. We discuss this in more detail in the video. It’s important to be clear about these entitlements so that employees know what they are entitled to.
Finally, you will need to include information about labor protection. This includes things like health and safety regulations, as well as the rights and responsibilities of both parties in relation to labor law. It’s important to be clear about these so that both employer and employee know their rights and obligations.
Once you have all of this information included in your employment contract, you will be ready to sign on the dotted line. This is a big step in any employment relationship, so it’s important to make sure that you have all the bases covered. If you have any questions, be sure to speak to a legal professional before drafting an employment contract.
If you have any questions about employment contracts in China or the UK, reach us at UK.Ireland@dezshira.com
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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 email@example.com.
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.