CHINA Law and Practice Contributed by: Linda Liang, Piao Liu, Chutian Wang and Xiangbo Lv, King & Wood Mallesons
King & Wood Mallesons 18th Floor, East Tower World Financial Center 1 Dongsanhuan Zhonglu Chaoyang District Beijing 100020 People’s Republic of China Tel: +86 010 5878 5161 Fax: +86 010 5878 5566 Email: linda.liang@cn.kwm.com Web: www.kwm.com
1. Employment Terms 1.1 Employee Status
company shall not exceed 10%, unless otherwise provided by law. 1.2 Employment Contracts According to the PRC Employment Contract Law (the “Employment Contract Law”), there are three types of employment contract terms: • a fixed-term contract; • an open-ended contract; and • a project-based contract expiring at the completion of a specific task or project. A written employment contract shall be entered into within one month from the date on which the employ - ee commences work; otherwise, the employer shall pay twice the monthly salary to the employee from the second month of the commencement of employ - ment until the date when a written employment con - tract is concluded. If an employer still fails to conclude a written employment contract after a year from the commencement of the employment, an open-ended employment contract will be deemed automatically concluded between the employer and the employee. The following information must be included in an employment contract: • the employer’s name, address and legal represent - ative/person in charge; • the employee’s name and home address, and the number of his/her valid identification card; • the term of the employment contract;
There is no clear distinction between blue-collar and white-collar workers under PRC employment laws. Workers uniformly hold the status of “employees” as protected by PRC employment laws, as long as they are employed by enterprises, individual economic organisations, private non-enterprise entities, state organs, public institutions or social organisations within the boundary of the PRC, no matter whether they are employed as senior staff or frontline workers. Under the current PRC employment laws, employ - ees can generally be divided into directly employed employees and labour dispatched employees. • Directly employed employees can be further divid - ed into full-time employees and part-time employ - ees, with full-time employment being the most common form of employment. Part-time employ - ees do not work more than four hours on average per day and 24 hours per week for one employer; they can work for more than one employer simulta - neously. • Labour dispatched employees are employed by a dispatch agency and then seconded to work for a company, under an indirect employment arrange - ment. Labour dispatch applies to temporary, aux - iliary or substitutable positions, and the law stipu - lates that the ratio of the number of dispatched employees versus the number of total employees (direct hires plus dispatched employees) of the
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