China Employment and Labor Compliance for Foreign Companies

Yes. A foreign-invested enterprise established in China is generally subject to Chinese labor and employment law for employees it hires in China. Headquarters policies or foreign-law contract language do not displace mandatory Chinese requirements on written contracts, working conditions, compensation, social insurance, termination, and labor-dispute procedure.

Poor performance does not create an automatic right to terminate. The employer should identify a lawful statutory ground, use a valid and communicated performance standard, preserve objective evidence, follow any required training or reassignment and notice steps, consider trade-union procedure where applicable, and calculate severance or other exposure before acting.

The Labor Dispute Mediation and Arbitration Law generally provides a one-year arbitration limitation period running from when the party knew or should have known that the right was infringed, subject to statutory suspension, interruption, and special treatment of certain wage claims during an ongoing employment relationship. The precise start date and exceptions should be reviewed from the facts.

The handbook should cover attendance, leave, compensation administration, confidentiality, data and systems, conflicts, anti-harassment, expenses, safety, discipline, investigations, performance, and separation in language employees can understand. Rules directly affecting employees require legally compliant formulation, consultation or discussion, publication, and proof of acknowledgment; copying a headquarters handbook is not enough.

The Labor Contract Law requires a written contract when an employment relationship is established and provides a one-month period after commencement for an existing relationship not documented at the start. Delays can create double-wage and open-ended-contract exposure under statutory conditions. Use a locally compliant bilingual contract, give the employee a copy, and preserve signature, delivery, start-date, job, compensation, workplace, and policy acknowledgment records.

A probation period must be included in the employment contract and comply with statutory limits tied to the contract term; one employment relationship generally cannot be subjected to repeated probation. Pay and termination during probation remain regulated. Define objective recruitment conditions before hiring, communicate them, assess them with evidence, and act within the probation period. 'Not a good fit' without documented failure to meet lawful recruitment conditions is a risky termination basis.

An open-ended contract may be required in circumstances specified by the Labor Contract Law, including certain long-service and successive fixed-term situations, subject to statutory conditions and exceptions. It does not mean employment can never be terminated; lawful termination grounds and procedures still apply. Track service dates, renewals, predecessor entities, mergers, written requests, and renewal notices before allowing a fixed-term contract to expire.

Rules directly affecting employees should be formulated through the legally required discussion and consultation process and then publicized or communicated so employees can know them. Keep drafts, employee-representative or union input, meeting records, responses, final approval, translations, publication, training, and signed acknowledgment. The handbook should be specific, proportionate, and consistent with contracts and law; a headquarters policy uploaded to an intranet may not be enough.

Potentially, if the conduct fits a lawful termination ground and a valid, communicated rule, and the employer proves the facts and follows required procedure. Investigate promptly, preserve original evidence, hear the employee's explanation, apply consistent discipline, and consider any trade-union notification requirement. Labels such as 'dishonesty' or 'insubordination' are not substitutes for a defined rule, material facts, proportionality, and a properly delivered termination notice.

Poor performance usually requires more than an unfavorable appraisal. Use a clear job description and objective standard, communicate the gap, preserve evidence, and follow the statutory route involving training or adjustment of position where applicable before deciding termination. Review notice or payment in lieu, severance, union procedure, protected status, and local rules. Do not create retroactive targets or rely only on a manager's undocumented opinion.

An economic layoff is available only under statutory grounds, numerical thresholds, consultation and reporting procedures, selection rules, and protected-category requirements. It is not a general cost-reduction shortcut. Prepare the business evidence, affected population, alternatives, employee or union explanation, labor-authority report where required, severance calculations, work-permit consequences, and communication plan. Individual negotiated exits may be more practical but must be genuinely voluntary and documented.

Statutory economic compensation is generally based on years of service with the employer and a monthly-wage base, with rules for partial years and a cap mechanism for high earners tied to local average wage. The entitlement depends on the termination or expiry ground. Calculate service continuity, transfers, unpaid amounts, bonuses in the wage base, statutory caps, and local data carefully rather than using a single national figure.

Post-employment non-competes are generally limited to eligible senior management, senior technical staff, and other personnel with confidentiality obligations, require economic compensation during the restricted period, and cannot exceed the statutory maximum duration. Define restricted business, territory, role, compensation, reporting, and breach consequences proportionately. A broad clause imposed on every employee without compensation or legitimate protectable interests is vulnerable and costly to administer.

Use clear confidentiality duties, information categories, security controls, permitted use, return and deletion, incident reporting, and post-employment obligations. Address service inventions, works, software, designs, data, documentation, moral rights where relevant, remuneration rules, and assistance with registrations. Contract clauses should align with Chinese patent, copyright, trade-secret, employment, and data rules. Preserve access logs and project records instead of relying only on a broad ownership sentence.

Chinese working-time, rest-day, holiday, and overtime rules generally apply, with alternative working-time systems requiring approval where applicable. Classifying an employee as a manager or paying a fixed salary does not automatically remove overtime obligations. Keep reliable attendance, approval, travel, remote-work, shift, leave, and payroll records. Review local rules and approval scope before using flexible or comprehensive working-hour arrangements.

Maintain service-history evidence, annual entitlement, scheduling notices, employee requests, approvals, leave taken, carryover or waiver documents, and any statutory payment calculation. Employers should actively manage leave rather than rely on an employee's silence. Service with prior employers can affect statutory entitlement in some circumstances, so onboarding should collect relevant proof. Local practice and the reason leave was not taken can affect exposure.

Chinese employers generally must register and contribute for covered employees under national and local social-insurance rules. Foreign employees working lawfully in China may also be covered, subject to applicable bilateral social-security agreements and implementation requirements. Verify the employee category, work location, contribution base, treaty certificate, payroll, and local process. A private agreement to pay cash instead of mandatory contributions may not eliminate employer liability.

Confirm the correct work authorization, work-type residence status, employing entity, job, location, validity dates, and any required changes before work begins. The employer named in the permit should align with the actual arrangement. Maintain passport, permit, contract, registration, renewal, change, and cancellation records. Business, student, family, or other status does not automatically authorize employment, and immigration compliance should be coordinated with the employment contract.

The label in the agreement is not decisive. Authorities and tribunals may examine personal dependence, control, working arrangements, remuneration, integration, tools, exclusivity, and who bears business risk. Misclassification can create wage, social-insurance, severance, tax, injury, and penalty exposure. Review contractors, consultants, gig workers, dispatch arrangements, and employer-of-record models based on actual performance, not only invoice format.

Define the allegation and investigator mandate, preserve documents and electronic data lawfully, control confidentiality, interview relevant people fairly, record sources, test credibility, and separate facts from conclusions. Respect personal-information, cross-border-data, whistleblower, union, and retaliation risks. Give the employee a meaningful opportunity to respond before discipline where appropriate. The final record should support the exact policy and legal ground used, without exaggeration or unnecessary personal data.

An offer letter should state whether it is binding, conditions, role, workplace, pay, start date, probation and document requirements without conflicting with the later employment contract. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable local employment rules govern the issue. Use lawful background-check consent, a deadline and a clear withdrawal mechanism for unmet objective conditions.

A material change to role, pay or workplace normally requires contractual authority, reasonableness and often employee agreement. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable local employment rules govern the issue. Document business need, consultation, expenses, family impact and any local policy; avoid punitive transfers disguised as management discretion.

A genuinely discretionary bonus needs clear eligibility, metrics, approval, forfeiture and proration rules consistently applied. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable local employment rules govern the issue. Past practice, communications and completed performance may create wage disputes despite a discretionary label, so preserve annual plans and decisions.

Define the earning event, collection condition, cancellations, returns, territory, shared accounts, tax, termination treatment and payment date. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable local employment rules govern the issue. Provide accessible calculations and preserve source data; retroactive changes to earned commission create significant risk.

Salary deductions need a lawful basis and must respect wage-payment and minimum-wage protections; a handbook fine is not automatically valid. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable local employment rules govern the issue. Document actual loss, employee responsibility, calculation, consent where relevant and local monthly deduction limits.

Remote work can change workplace, working-time evidence, injury, social-insurance, tax, data-security and local-rule exposure. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable local employment rules govern the issue. Use a written arrangement covering location, hours, equipment, expenses, safety, confidentiality, return-to-office and governing entity.

Labor dispatch is restricted to temporary, auxiliary or substitute positions and is subject to licensing, equal-pay and headcount rules. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable local employment rules govern the issue. Verify the dispatch agency, classify positions, monitor contracts and contributions and avoid using dispatch as a permanent workforce substitute.

Part-time employment has statutory limits on average daily and weekly hours, pay intervals and termination, and generally should not include probation. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable local employment rules govern the issue. Track actual hours and avoid arrangements that function as full-time employment under a different label.

Pregnancy, maternity and nursing status creates enhanced protection, and many ordinary termination or expiry routes are restricted. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable local employment rules govern the issue. Check the exact statutory ground, contract extension, leave, health and local benefits before acting; serious misconduct requires particularly strong proof and procedure.

The protected medical-treatment period depends on service and local implementation, and termination restrictions and medical subsidies may apply. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable local employment rules govern the issue. Collect lawful certificates, calculate the period, manage leave and return-to-work assessment and avoid using absence alone as misconduct.

Provide emergency response, report and apply for work-injury recognition within applicable periods, preserve evidence and coordinate benefits. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable local employment rules govern the issue. Do not condition reporting on an internal fault finding; keep incident, witness, medical, training and insurance records.

Sick-leave eligibility, pay and documentation depend on national and local rules and the employee's protected medical-treatment period. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable local employment rules govern the issue. Use a communicated policy, verify certificates proportionately, protect health data and distinguish genuine leave abuse from protected illness.

No single legal basis fits every HR activity; some processing may be necessary for employment management under lawfully adopted rules, while sensitive or cross-border processing may require separate consent or other formalities. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable local employment rules govern the issue. Map purpose, minimum data, access, retention and notices under the Personal Information Protection Law.

Cross-border HR data transfers require a lawful processing basis, notice, necessity, security and the applicable transfer mechanism or exemption analysis. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable local employment rules govern the issue. Inventory fields, recipients and systems, minimize sensitive data, execute required agreements and retain assessment records.

Adopt confidential reporting, conflict-free investigation, need-to-know access and documented anti-retaliation controls. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable local employment rules govern the issue. Separate performance decisions from the complaint, preserve timelines and provide lawful escalation without promising absolute anonymity that cannot be maintained.

Employers should take reasonable prevention, complaint, investigation and corrective measures under the Civil Code and related employment rules. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable local employment rules govern the issue. Publish definitions and channels, train personnel, protect privacy, hear both sides and impose proportionate action supported by evidence.

Where a trade union exists, statutory prior-notification and correction procedures may apply to unilateral termination. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable local employment rules govern the issue. Build the notification into the termination checklist and preserve delivery, union response and the employer's consideration before issuing the final notice.

Record voluntary mutual termination, last working day, wages, leave, bonus, severance, tax, benefits, property return and release in clear bilingual terms. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable local employment rules govern the issue. Allow review, avoid coercion, pay on defined conditions and address work-permit cancellation for foreign staff.

The employee generally follows statutory or contractual notice rules, while the employer must process pay, records, social insurance and separation documentation. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable local employment rules govern the issue. Use a written resignation, handover list, asset return and confidentiality reminder without unlawfully withholding earned wages or mandatory certificates.

Organize the employment contract, policies and adoption proof, attendance, payroll, social insurance, appraisals, notices, investigation records and termination delivery. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable local employment rules govern the issue. Employers bear significant record-keeping burdens, so unsupported manager recollection or a late-created document is risky.

Verify identity, qualifications, prior-employment restrictions, work authorization where applicable, bank and social-insurance information with lawful data minimization. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable national and local employment rules govern the issue. Provide privacy notices, obtain required consent and retain only records needed for employment and compliance.

A manager employed by a Chinese entity should generally have a compliant written local contract even if a global assignment letter also exists. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable national and local employment rules govern the issue. Align employer, pay, benefits, tax, work permit, reporting line, term and termination across documents.

Concurrent employment can create conflict, performance, social-insurance and confidentiality issues and may support action when it materially affects duties and is not corrected. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable national and local employment rules govern the issue. Use clear disclosure and conflict rules and assess the actual impact before discipline.

The employer must prove lawful recruitment conditions were communicated and objectively not met during the valid probation period. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable national and local employment rules govern the issue. Keep the job description, written criteria, assessments, work samples, feedback and timely termination notice.

Alternative working-time systems generally require competent approval where applicable; a contract label alone is insufficient. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable national and local employment rules govern the issue. Confirm local authority, covered positions, approval period, attendance and overtime treatment.

Use a written policy covering eligible roles, work location, attendance, equipment, expenses, data security, safety and return-to-office. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable national and local employment rules govern the issue. Adopt and communicate the policy through the required employee consultation process when it affects material rights.

A bonus may become payable when objective conditions were satisfied and employer discretion was not genuinely reserved or was exercised abusively. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable national and local employment rules govern the issue. Preserve the plan, communications, results, approval history and treatment of comparable employees.

Separate the offshore equity plan from local wages, tax, foreign-exchange, vesting, termination and data requirements. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable national and local employment rules govern the issue. Provide translated rules and clarify that grant, vesting and exercise are distinct events.

Treatment depends on structure, purpose, payment and local rules; regular cash allowances can affect wage-based calculations. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable national and local employment rules govern the issue. Document reimbursement versus fixed allowance, invoices, tax treatment and repayment conditions.

State eligibility, rent, utilities, tax, occupancy, family use, damage, termination and move-out deadlines. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable national and local employment rules govern the issue. Avoid unlawful self-help eviction and coordinate housing consequences with work-permit or assignment changes.

It allocates hypothetical and actual tax between employer and assignee but must match Chinese withholding and reporting obligations. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable national and local employment rules govern the issue. Define covered income, exchange rates, reconciliations, refunds, penalties, advice and post-departure cooperation.

Ownership and remuneration depend on whether it is a service invention and on patent, contract and employment facts. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable national and local employment rules govern the issue. Keep invention disclosures, job duties, resource use, development records and assignment and reward policies.

A service-period agreement is generally limited to qualifying special technical training funded by the employer and reasonable documented costs. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable national and local employment rules govern the issue. Use a written agreement with term and pro-rata repayment; ordinary onboarding is not automatically recoverable training.

Post-employment compensation should be paid during the restricted period under the agreement and applicable rules; non-payment can affect enforceability and termination rights. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable national and local employment rules govern the issue. Set amount, date, account, reporting and release procedure and keep payment proof.

Paid release from duties must be structured consistently with the continuing employment relationship, wages, social insurance, access and termination date. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable national and local employment rules govern the issue. Do not treat garden leave as an automatic substitute for a lawful non-compete or termination ground.

Marriage, maternity, paternity, parental, nursing and other leave can depend heavily on provincial or municipal rules. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable national and local employment rules govern the issue. Maintain a location-specific schedule and update payroll and handbook provisions when local legislation changes.

Monitoring needs a legitimate purpose, necessity, transparency, proportionality and protection of personal information, and should avoid private areas. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable national and local employment rules govern the issue. Publish a policy, limit access and retention and document security under the Personal Information Protection Law.

Monitoring must be necessary, proportionate, transparent and tied to legitimate employment management or security, with special caution for private accounts. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable national and local employment rules govern the issue. Separate business and personal systems, define access and preserve evidence lawfully.

Address device security, business-data separation, approved apps, access, incident reporting, backups, remote deletion, exit and employee privacy. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable national and local employment rules govern the issue. Obtain required acknowledgments and avoid deleting personal data without lawful authority.

Use the contract, handbook and lawful service methods and preserve proof of content, date and receipt or refusal. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law and applicable national and local employment rules govern the issue. Coordinate union notice, final pay, severance, certificate, social insurance, property return and work-permit cancellation.

An overseas form alone is risky; employees working in China should receive a contract compliant with mandatory Chinese employment law and local practice. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law, Social Insurance Law and applicable local employment rules govern the issue. Use the correct Chinese employing entity, mandatory terms, Chinese-language clarity, local benefits and rules, and align any global addendum without reducing statutory rights.

A written labor contract should be concluded within one month after employment begins; delay can trigger double-wage exposure subject to legal limits. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law, Social Insurance Law and applicable local employment rules govern the issue. Track start dates, signatures and delivery, avoid backdating, and preserve any refusal and lawful follow-up.

Unilateral extension is generally risky because probation is subject to statutory limits and should be agreed only once within the same employment relationship. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law, Social Insurance Law and applicable local employment rules govern the issue. Set lawful probation at signing, use documented criteria and address failure before expiry through a legally supported decision.

A verbal dismissal creates substantial proof and legality risk; termination should follow the statutory ground, procedure and written notice requirements. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law, Social Insurance Law and applicable local employment rules govern the issue. Pause access only where necessary, preserve the decision record, consult the trade union where applicable and deliver a clear Chinese notice through provable channels.

Refusal does not automatically invalidate a lawfully adopted and communicated policy, but the employer must prove consultation, publication and access. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law, Social Insurance Law and applicable local employment rules govern the issue. Use witnesses, email or system delivery, training and accessible copies, and avoid forcing a false signature.

Monitoring must have a legitimate purpose, transparent rules, proportional scope and personal-information safeguards. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law, Social Insurance Law and applicable local employment rules govern the issue. Use company accounts and devices, issue notice and consent where required, limit access, retain audit logs and avoid collecting unrelated private communications.

Offshore payment can create wage, tax, foreign-exchange, social-insurance and termination-calculation risks if it obscures the true remuneration. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law, Social Insurance Law and applicable local employment rules govern the issue. Document the full package, use lawful payroll and reporting, coordinate tax advice and include all legally relevant compensation in statutory calculations.

Deductions require a lawful basis, proof of responsibility and compliance with wage-protection limits; unilateral punitive deductions are risky. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law, Social Insurance Law and applicable local employment rules govern the issue. Investigate causation and amount, hear the employee, document any agreement and avoid reducing pay below mandatory thresholds.

Use a neutral, documented and proportionate investigation that verifies policy, records, intent, approval and loss before discipline. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law, Social Insurance Law and applicable local employment rules govern the issue. Preserve original receipts and system logs, interview relevant persons, protect privacy, allow an explanation and apply the published rule consistently.

A permanent location or work-pattern change may require agreement if it materially changes the labor contract or employee interests. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law, Social Insurance Law and applicable local employment rules govern the issue. Address workplace, hours, equipment, expenses, data security, injury reporting, supervision and return-to-office rights in writing.

Confidentiality and properly tailored obligations may be enforceable, but a restriction that functions as post-employment non-compete should comply with statutory scope and compensation rules. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law, Social Insurance Law and applicable local employment rules govern the issue. Define protected employees, customers and information, avoid overbreadth and coordinate the clause with non-compete and trade-secret protection.

A new employing entity generally requires employee agreement and documented transfer or termination and rehire, with continuity issues addressed. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law, Social Insurance Law and applicable local employment rules govern the issue. Define service credit, compensation, leave, benefits, social insurance, restrictive covenants and work-permit changes before the transfer.

Arrange medical care, report and apply for work-injury recognition within applicable procedures, preserve evidence and avoid retaliatory action. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law, Social Insurance Law and applicable local employment rules govern the issue. Document time, place, task, witnesses, medical records and insurance filings, and calculate treatment, leave and disability obligations under local rules.

Special protection can restrict termination during the statutory medical-treatment period, subject to limited legal exceptions. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law, Social Insurance Law and applicable local employment rules govern the issue. Verify service-based entitlement, diagnosis and leave records, maintain communication and distinguish contract expiry, misconduct and incapacity procedures.

Statutory annual-leave entitlement and compensation depend on service, leave taken and legally recognized arrangements. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law, Social Insurance Law and applicable local employment rules govern the issue. Keep attendance and leave records, give provable scheduling opportunities and calculate the statutory portion separately from additional company leave.

A contractor label does not prevent a labor relationship if personal dependence, management, remuneration and integration show employment. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law, Social Insurance Law and applicable local employment rules govern the issue. Assess actual control, exclusivity, hours, tools, reporting and risk; use a compliant employer or lawful service structure instead of paper reclassification.

Only data necessary for a lawful HR purpose should be transferred with required notice, consent or other basis, security and the applicable cross-border mechanism. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law, Social Insurance Law and applicable local employment rules govern the issue. Map fields and recipients, minimize sensitive information, complete impact and contract steps and retain transfer and access records.

Recording may be usable when lawfully and proportionately made, but privacy, notice, authenticity and workplace rules should be considered. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law, Social Insurance Law and applicable local employment rules govern the issue. State the purpose, preserve the complete original, restrict access and pair the recording with signed minutes and underlying evidence.

Use a documented channel, verify common and individual issues, communicate without retaliation and involve the trade union or employee representatives where required. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law, Social Insurance Law and applicable local employment rules govern the issue. Preserve payroll and policy records, set response milestones and separate lawful collective concerns from misconduct allegations.

A clear voluntary settlement may resolve a dispute, but advance or coerced waiver of mandatory rights can be invalid. The Labor Contract Law, Labor Dispute Mediation and Arbitration Law, Social Insurance Law and applicable local employment rules govern the issue. Use accurate calculations, adequate review opportunity, mutual termination language, payment conditions and signed Chinese documentation without concealment or pressure.

Direct hiring without a qualified China employer can create labor, tax, payroll, social-insurance, immigration, and permanent-establishment risk. Map who recruits, controls, pays, evaluates, disciplines, and terminates the worker before choosing an entity, compliant service, or other structure. Key evidence: Keep role descriptions, management lines, payment flows, work location, contracts, and tax or benefits records. Important risk: Calling a worker an independent contractor does not control the legal classification. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

A written labor contract should be concluded within one month after employment begins under the Labor Contract Law. Use a compliant bilingual form where useful and complete identity, role, location, pay, hours, term, probation, social insurance, and policies. Key evidence: Keep the signed contract, delivery acknowledgment, onboarding record, payroll start, and any refusal evidence. Important risk: Delay can trigger double-wage and proof risks. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

The choice should reflect statutory conditions, prior renewals, employee history, business need, and local practice rather than an automatic preference. Track each contract term, renewal, role change, service length, and circumstances that may require an open-ended contract. Key evidence: Keep prior contracts, renewal notices, employee requests, service records, and lawful consultation documents. Important risk: Repeated short terms can create mandatory open-ended-contract or nonrenewal exposure. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Probation must be included in the labor contract and comply with limits linked to contract duration; it generally may be agreed only once for the same employee. Define measurable recruitment conditions, evaluation records, manager responsibility, and a decision timetable before probation expires. Key evidence: Keep the job description, stated hiring conditions, interview records, reviews, warnings, and decision notice. Important risk: A probation label does not permit dismissal without a statutory ground and evidence. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

The rules should be lawful, reasonably drafted, adopted through the required employee consultation process, and effectively communicated. Document discussion with the employee congress or all employees and consultation with the union or employee representatives where applicable. Key evidence: Keep drafts, meeting records, comments, final policies, translations, training, acknowledgments, and update history. Important risk: A hidden or unilaterally imposed policy may receive little weight in termination litigation. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

The employer should maintain reliable attendance, approval, scheduling, payroll, leave, travel, and compensatory-rest records consistent with the applicable working-hours system. Define who may authorize overtime and prohibit off-record work while ensuring workloads are realistic. Key evidence: Keep system logs, rosters, access records, emails, pay slips, leave records, and employee confirmations. Important risk: A policy saying overtime needs approval may not defeat credible proof that management required or accepted the work. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Special working-hours systems generally require approval or other local administrative compliance; a contract label alone is insufficient. Check the role, locality, approval authority, permitted scope, validity period, rest protection, and renewal. Key evidence: Keep the approval, employee list, contracts, schedules, health and safety records, and renewal calendar. Important risk: Operating without valid approval can create overtime and administrative exposure. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

It should define base salary, variable pay, lawful deductions, pay date, overtime, allowances, tax, social insurance, leave, and final pay consistently with local rules. Align offer letters, labor contracts, commission plans, handbooks, payroll systems, and bank transfers. Key evidence: Keep signed compensation terms, calculations, performance data, pay slips, tax filings, and receipt evidence. Important risk: Discretionary labels do not automatically allow withholding earned compensation. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Employers generally must register and contribute for employees under national and local social-insurance rules. Confirm contribution base, categories, locality, start and end dates, employee transfers, and any lawful local variation. Key evidence: Keep registration, monthly filings, payroll, payment receipts, employee records, and correction history. Important risk: Private agreements to waive mandatory contributions may not eliminate liability. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Employees with qualifying cumulative service generally receive 5, 10, or 15 days depending on service length under the Paid Annual Leave Regulations, subject to statutory exclusions. Collect prior service proof, calculate entitlement, plan leave, document employee requests, and handle unused leave under the rules. Key evidence: Keep service evidence, leave balance, approvals, attendance, consent, and payment calculations. Important risk: A company cannot safely assume only service with the current employer counts. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Sick-leave pay, medical treatment period, evidence, and termination restrictions depend on national rules and important local requirements. Adopt a lawful certificate process, protect medical information, track service and medical period, and review accommodation or return-to-work options. Key evidence: Keep medical certificates, leave records, communications, pay calculations, role analysis, and local-rule research. Important risk: Terminating during a protected medical period without analysis can be unlawful. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Checks should be necessary, proportionate, transparent, and compliant with personal-information and anti-discrimination obligations. Obtain appropriate notice or consent, limit data fields, verify vendors, secure transfers, define retention, and create an adverse-decision review. Key evidence: Keep notices, consents, vendor terms, source records, relevance analysis, and deletion logs. Important risk: Collecting excessive criminal, medical, family, or financial data can create privacy and discrimination risk. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Post-employment non-competes are generally limited to senior management, senior technical personnel, and others with confidentiality obligations, with compensation and a maximum statutory duration. Define protected interests, territory, restricted activity, term, compensation, reporting, release, and breach consequences. Key evidence: Keep role and access evidence, confidentiality duties, compensation payments, and competitor facts. Important risk: Using the same non-compete for every employee can make enforcement expensive and uncertain. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Contracts and policies should distinguish statutory service inventions, commissioned work, pre-existing IP, confidential information, rewards, disclosures, and return of materials. Coordinate labor, IP, confidentiality, data, and information-security documents with actual access controls. Key evidence: Keep invention disclosures, job duties, development records, assignments, reward policies, access logs, and exit certifications. Important risk: Overbroad ownership wording cannot cure missing registrations or lack of secrecy measures. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Poor performance is not a simple at-will ground; the employer generally needs objective standards, proof, training or reassignment where required, and the correct statutory procedure. Define role expectations, conduct fair reviews, identify gaps, provide support, document reassignment or training, and obtain legal review before notice. Key evidence: Keep job descriptions, targets, reviews, coaching, warnings, training, alternative-role analysis, and notices. Important risk: Subjective manager dissatisfaction is usually inadequate evidence. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Immediate termination may be available for a serious breach of lawful company rules or another statutory ground, but evidence and procedure must be robust. Confirm the rule, consultation and communication history, facts, seriousness, consistency, investigation fairness, union notice where applicable, and decision authority. Key evidence: Keep policies, acknowledgments, investigation records, system logs, witness material, employee response, and termination notice. Important risk: Minor misconduct or inconsistent discipline can lead to unlawful-termination liability. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

A negotiated separation should clearly state the final date, compensation, payment, leave, bonus, social insurance, handover, property, confidentiality, non-compete, and release. Confirm voluntary consent, authority, tax treatment, payment timing, and whether statutory certificates and transfer steps are completed. Key evidence: Keep the signed agreement, calculation, payment proof, handover, certificate, and communications. Important risk: Pressure, ambiguity, or unpaid consideration can lead to later challenge. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Severance generally uses qualifying years of service and a statutory monthly-wage base, subject to rules, caps, and the termination ground. Determine whether severance or double compensation is due and calculate service periods, wage components, local average wage, and cap rules. Key evidence: Keep payroll, bonuses, allowances, attendance, service records, prior transfers, and calculation sheets. Important risk: Using base salary alone may understate the statutory monthly wage. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Economic layoff requires statutory grounds, workforce thresholds, advance explanation, employee or union input, reporting, selection rules, and protected-person analysis. Build the business case, affected population, alternatives, consultation plan, authority filing, selection matrix, severance, and communication plan. Key evidence: Keep financial and operational evidence, minutes, comments, report receipts, selection records, and notices. Important risk: A restructuring label does not bypass individual protections or local procedure. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

The Labor Dispute Mediation and Arbitration Law generally provides a one-year period from when the claimant knew or should have known of the infringement, with special treatment for wage claims during employment. Calendar each disputed act, grievance, acknowledgment, mediation, and employment-end date rather than using one date for all claims. Key evidence: Keep payroll, contracts, notices, complaints, acknowledgments, mediation records, and termination documents. Important risk: Different claims may accrue at different times, and local application should be checked. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Labor dispatch is restricted to temporary, auxiliary, or substitute positions and is subject to statutory conditions and proportional limits. Confirm the dispatch agency's license, position classification, headcount ratio, equal-pay compliance, contract allocation, and local implementation requirements. Key evidence: Keep the agency license, dispatch agreement, worker roster, position analysis, pay records, and workforce ratio calculation. Important risk: Using dispatch as a permanent substitute for direct employment can create regulatory and employment liability. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Classification depends on actual control, integration, remuneration, tools, schedule, exclusivity, and economic dependence rather than the contract label alone. Assess the working model before engagement and use direct employment or a lawful service structure when the facts show subordination. Key evidence: Keep role descriptions, schedules, payment records, supervision messages, equipment records, invoices, and organizational charts. Important risk: A service agreement does not prevent labor claims if the relationship functions as employment. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Part-time employment has special limits on working time, payment intervals, probation, and termination, and should be documented even where a full written contract is not mandatory. Track actual hours, avoid disguised full-time work, set the hourly rate lawfully, and confirm local social-insurance treatment. Key evidence: Keep schedules, time records, payment receipts, role descriptions, communications, and local compliance advice. Important risk: Regular overtime or fixed full-day attendance can undermine the part-time classification. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Remote cross-province work can affect contract performance place, local labor standards, social insurance, tax, working hours, safety, data, and dispute venue. Approve the location in writing, identify applicable local rules, define attendance and security, and review payroll and insurance registration. Key evidence: Keep the remote-work agreement, addresses, time records, equipment list, security controls, payroll, and insurance filings. Important risk: An informal remote arrangement can create unexpected local obligations and evidence gaps. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

The employer should verify the proper work permit and residence authorization before employment begins; a business or tourist visa is not a substitute. Check the employing entity, job, location, permit validity, qualifications, medical and registration requirements, and renewal calendar. Key evidence: Keep passport and permit copies, application records, labor contract, job documents, residence registration, and renewal notices. Important risk: Unauthorized work can expose both the individual and employer to administrative consequences. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

A representative office generally must use an authorized foreign-enterprise service organization rather than directly employ local Chinese personnel. Select a licensed service provider, align the service and personnel documents, and allocate payroll, social insurance, discipline, confidentiality, and termination duties. Key evidence: Keep the representative-office certificate, provider qualification, service agreement, worker documents, payroll, and compliance records. Important risk: Direct-hire practices can create labor, tax, and registration risk. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

An accepted offer can create contractual or pre-contractual obligations depending on its certainty, conditions, withdrawal, reliance, and communications. State conditions such as background checks, work authorization, start date, approvals, compensation, and the relationship to the formal labor contract. Key evidence: Keep the offer, acceptance, conditions, background-check consent, withdrawal notice, reliance evidence, and draft contract. Important risk: Withdrawing after the candidate resigns from another job can create a damages claim even before employment starts. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Electronic labor contracts may be valid when identity, intent, reliable signature, integrity, accessibility, and delivery can be demonstrated under applicable rules. Use a compliant platform, verify both parties, preserve the final file and audit trail, and give the employee accessible copies. Key evidence: Keep authentication, signature certificates, timestamps, audit logs, delivery proof, consent, and document retention records. Important risk: A scanned signature image or unverifiable click may not prove valid execution. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

A bilingual contract can improve understanding, but it should state the controlling language and use consistent terms without reducing mandatory employee rights. Translate compensation, duties, location, hours, probation, confidentiality, discipline, termination, and dispute terms accurately. Key evidence: Keep both signed language versions, translator review, defined-term glossary, amendments, and employee acknowledgments. Important risk: Conflicting versions can create ambiguity, especially in termination and compensation disputes. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

A bonus described as discretionary may still become enforceable through clear promises, formulae, policies, repeated practice, or discriminatory administration. Define eligibility, performance period, metrics, approval, payment date, treatment on leave or termination, and lawful discretion. Key evidence: Keep bonus plans, policy consultation records, targets, evaluations, approvals, payroll, and prior practice data. Important risk: Changing criteria after performance or applying discretion inconsistently can trigger claims. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Equity plans must coordinate the foreign or domestic issuer, grant terms, foreign-exchange, tax, securities, labor, data, vesting, and termination treatment. Issue clear plan and grant documents, identify approval and filing needs, and separate salary entitlements from contingent equity rights. Key evidence: Keep board approvals, plan rules, grants, acceptances, valuations, tax and foreign-exchange records, and termination calculations. Important risk: Global template language may conflict with mandatory China labor rules or local filing practice. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

An employer should collect only data necessary for lawful human-resources management or another valid basis and must provide required notices and safeguards. Map recruitment, payroll, benefits, monitoring, health, travel, background, and cross-border data, then set retention and access limits. Key evidence: Keep privacy notices, policy basis, consents where needed, data inventory, access logs, vendor terms, and deletion records. Important risk: Employee consent alone may not cure excessive collection or insecure cross-border transfer. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Monitoring should have a legitimate purpose, clear policy, proportional scope, employee notice, security controls, and respect for privacy and personal information law. Separate company systems from personal accounts, limit access, document approvals, and use targeted investigation rather than continuous excessive surveillance. Key evidence: Keep the monitoring policy, consultation and acknowledgment records, technical scope, access logs, investigation authorization, and evidence chain. Important risk: Secret or disproportionate monitoring can undermine evidence and create privacy liability. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

A fair, prompt, confidential, and documented investigation is important before discipline or dismissal. Preserve evidence, define allegations, control conflicts, interview relevant persons, allow a response, compare policy and past practice, and document findings. Key evidence: Keep investigation authorization, evidence log, interview notes, employee response, policies, comparator cases, and decision approval. Important risk: Predetermined conclusions, unlawful evidence collection, or delay can weaken a serious-misconduct dismissal. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Rules directly affecting employees' material interests require the statutory democratic consultation and publication process to support enforceability. Prepare the draft, collect employee congress or workforce comments, consult the trade union or representatives, revise, adopt, and communicate the final rules. Key evidence: Keep drafts, meeting notices, attendance, comments, union correspondence, resolutions, publication, training, and acknowledgments. Important risk: A policy issued only by global management may not be enforceable as a dismissal basis. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Pregnancy, maternity, and nursing periods carry mandatory leave, working-condition, and termination protections, subject to limited statutory exceptions. Confirm local benefits, prohibited work, medical needs, leave, payroll, social insurance, fixed-term expiry treatment, and return-to-work arrangements. Key evidence: Keep medical certificates, leave requests, attendance, payroll, insurance claims, accommodation communications, and contract dates. Important risk: Using performance or restructuring as a pretext can create reinstatement or damages exposure. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

The employer should arrange treatment, report and apply for work-injury recognition within the applicable framework, preserve evidence, and coordinate benefits and return to work. Record the event immediately, identify witnesses, secure the scene, meet reporting deadlines, and review insurance registration and safety corrections. Key evidence: Keep incident reports, medical records, witness statements, video, payroll, insurance filings, recognition and capacity decisions, and corrective actions. Important risk: Missing reporting or insurance obligations can shift benefit costs to the employer. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

A material change of work location normally requires contractual authority, reasonableness, consultation, and often written agreement, considering the employee's burden and local standards. Review the labor contract, business need, distance, relocation support, pay, family impact, and alternatives before issuing a transfer. Key evidence: Keep the contract, mobility policy, consultation record, business rationale, offers of support, employee response, and comparator cases. Important risk: Treating refusal as misconduct without a valid basis can make termination unlawful. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Suspension should have a lawful policy and proportionate terms; withholding wages or benefits without a clear basis creates additional risk. Define duration, pay, access restrictions, confidentiality, cooperation, review dates, and the employee's opportunity to respond. Key evidence: Keep the policy, suspension notice, payroll, access logs, investigation timeline, communications, and final decision. Important risk: An indefinite unpaid suspension may be treated as unlawful wage withholding or constructive termination. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

An employee should follow the applicable notice and handover duties, but the employer must still pay earned wages and cannot impose unsupported penalties. Acknowledge resignation, secure systems and property, document outstanding work, preserve evidence of actual loss, and process separation lawfully. Key evidence: Keep the resignation, contract, handover list, asset records, access logs, payroll, confidentiality obligations, and loss evidence. Important risk: Withholding all final pay to force handover can create a separate labor claim. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Before a fixed-term contract expires, the employer should assess statutory open-term rights, local interpretation, renewal history, employee requests, protected status and notice obligations. Audit the file early, calculate the renewal count, consult the employee, issue written proposals or notices, and avoid gaps in continued work. Key evidence: Keep all contracts and amendments, renewal notices, employee responses, performance records, protected-status information, and service proof. Important risk: Allowing work to continue after expiry or ignoring open-term rights can create double-wage or unlawful-termination exposure. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Official authority: PRC Labor Contract Law as amended December 28, 2012

Probation length and pay are restricted, and termination requires a statutory ground with evidence rather than a general statement that the employee failed probation. Set lawful, job-related and disclosed hiring conditions, conduct timely evaluation, allow a response, and deliver a reasoned notice before probation ends. Key evidence: Keep the contract, recruitment criteria, disclosed standards, work records, evaluations, coaching, employee response, and termination notice. Important risk: Standards created after hiring or a late decision may make termination unlawful. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Official authority: PRC Labor Contract Law as amended December 28, 2012

Overtime turns on the applicable working-hours system, actual work, employer knowledge or arrangement, reliable records, approvals and local rules. Maintain accurate attendance and system logs, control after-hours instructions, investigate discrepancies, and preserve records for the required period. Key evidence: Keep approvals, clock and access data, work messages, schedules, output records, payroll, leave and compensatory-time records. Important risk: A no-overtime-without-approval policy may not defeat proof that managers required or accepted the work. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Official authority: PRC Labor Contract Law as amended December 28, 2012

Special working-hours systems generally require regulatory approval and compliant implementation for eligible roles; contract wording alone is insufficient. Classify positions, obtain local approval, define rest and health protections, track actual work, and renew authorization when required. Key evidence: Keep the approval, role analysis, contracts, schedules, attendance, health and safety records, payroll, and renewal calendar. Important risk: Using a special system without approval can create overtime and administrative liability. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Official authority: PRC Labor Contract Law as amended December 28, 2012

Entitlement depends on cumulative service and applicable rules, while scheduling, carryover and payment for unused leave require documented employer action. Collect service evidence, calculate entitlement, issue schedules, record employee requests and refusals, and handle unused days lawfully at year-end or separation. Key evidence: Keep prior-service proof, leave policy, balances, requests, approvals, notices, attendance, payroll, and separation calculation. Important risk: Assuming new hires have no prior service can understate entitlement. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Official authority: PRC Labor Contract Law as amended December 28, 2012

Severance commonly depends on the statutory ground, years of service and qualifying monthly-wage base, subject to caps and local implementation. Identify the precise termination route, service period, historical compensation, local average-wage data, protected status, and any contract enhancements. Key evidence: Keep contracts, payroll and bonus records, social-insurance data, service history, termination documents, local wage data, and calculation sheet. Important risk: Using only base salary or applying a cap without checking the employee's facts can produce an underpayment. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Official authority: PRC Labor Contract Law as amended December 28, 2012

A mutual separation should be voluntary, informed and specific about date, payment, tax, handover, property, confidentiality, noncompetition, claims and certificate obligations. Allow review time, state the payment schedule and consequences of default, complete handover, and issue mandatory separation documents. Key evidence: Keep negotiation records, signed agreement, authority approval, payment proof, handover list, asset return, and certificate delivery. Important risk: A broad waiver may not cover mandatory or unknown rights and can be challenged if procured by pressure or deception. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Official authority: PRC Labor Contract Law as amended December 28, 2012

A mass layoff is available only under statutory conditions and requires the prescribed explanation, consultation, reporting, selection and priority-rehire procedures. Confirm the qualifying business ground and headcount threshold, prepare financial evidence and selection criteria, consult employees or the union, report to the authority, and calculate payments. Key evidence: Keep business and financial records, workforce data, plan drafts, consultation minutes, authority filing, selection matrix, notices, and severance proof. Important risk: Calling a restructuring a mass layoff without the statutory process can make multiple terminations unlawful. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Official authority: PRC Labor Contract Law as amended December 28, 2012

A noncompetition covenant generally requires eligible personnel, reasonable scope and statutory or agreed compensation during the restricted period. Define protected interests, territory, activities, duration, payment date, reporting, release and breach consequences, then pay and document compensation consistently. Key evidence: Keep the covenant, role and secret-access evidence, payment records, employee reports, release notice, new-employment evidence, and loss records. Important risk: Stopping payment can allow the employee to seek release, while overbroad restrictions may not be fully enforced. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Official authority: PRC Labor Contract Law as amended December 28, 2012

Confidentiality protects identified nonpublic information, while noncompetition restricts certain work after employment and carries separate eligibility, scope and compensation requirements. Define trade secrets and access controls, use confidentiality duties for all relevant staff, and reserve paid noncompetition for qualifying personnel and risks. Key evidence: Keep information classifications, access logs, policies, acknowledgments, exit records, covenant and compensation records, and misuse evidence. Important risk: Labeling ordinary knowledge as confidential or imposing noncompetition on everyone can weaken enforcement. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Official authority: PRC Labor Contract Law as amended December 28, 2012

Poor performance alone does not automatically permit immediate dismissal; the employer normally needs objective proof and the statutory process applicable to inability to perform work. Set measurable duties, evaluate fairly, communicate deficiencies, provide training or a lawful reassignment where required, and reassess before deciding. Key evidence: Keep job descriptions, targets, data, reviews, warnings, training, reassignment offers, employee responses, comparator records, and notice. Important risk: Subjective ratings or a predetermined performance-improvement plan can make termination unlawful. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Official authority: PRC Labor Contract Law as amended December 28, 2012

An employee with illness or non-work injury may have a protected medical treatment period based on service and local rules, affecting pay and termination timing. Verify medical certificates, service history, local duration and wage rules, maintain communication, assess return-to-work ability, and avoid prohibited termination. Key evidence: Keep certificates, hospital records provided lawfully, leave and service records, payroll, communications, capacity assessment, and notices. Important risk: Treating ordinary sick-leave policy as the full statutory protection can create unlawful-termination risk. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Official authority: PRC Labor Contract Law as amended December 28, 2012

Underpayment, wrong-location enrollment or non-enrollment can lead to correction, arrears, late charges, administrative measures and employee claims. Audit employee eligibility, wage base, location, contribution categories and historical gaps, then correct filings through lawful local procedures. Key evidence: Keep contracts, payroll, contribution records, employee roster, local rules, correction filings, payment receipts, and communications. Important risk: A private agreement to replace mandatory contributions with cash may not eliminate employer liability. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Official authority: PRC Labor Contract Law as amended December 28, 2012

Wage deductions require a lawful basis and must comply with minimum-wage, damage, tax, social-insurance and local restrictions; contractual penalties are risky. Identify the legal basis, investigate and quantify actual loss, obtain the employee's response, apply limits, and show deductions transparently on payroll. Key evidence: Keep policy and consultation records, incident evidence, loss calculation, employee statement, approval, payslip, and payment record. Important risk: Automatic fines or full-wage withholding can generate separate wage claims. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Official authority: PRC Labor Contract Law as amended December 28, 2012

The employer should calendar renewal early and stop unauthorized work if lawful work authorization lapses, while coordinating labor-contract and residence consequences. Review eligibility, job and entity consistency, gather renewal documents, submit through the proper authority, track residence authorization, and plan a lawful contingency. Key evidence: Keep passport, permits, contract, job and qualification documents, filing receipts, authority notices, travel and residence records, and employee communications. Important risk: Allowing work during a gap can expose both employer and employee to immigration consequences. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Official authority: PRC Labor Contract Law as amended December 28, 2012

A secondment must align the actual employer, payroll, direction, cost recharge, tax, social insurance, immigration, data, IP and liability arrangements. Document the home and host roles, supervision, benefits, expenses, work authorization, confidentiality, invention rights, duration and return or localization plan. Key evidence: Keep employment and secondment agreements, board approvals, payroll and recharge records, permits, tax analysis, insurance, and performance reporting. Important risk: A paper secondment that differs from daily reality can create a local employment relationship or tax exposure. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Official authority: PRC Labor Contract Law as amended December 28, 2012

Classification depends on whether the vendor delivers an independent service result or merely supplies workers controlled by the customer. Define outputs and acceptance, let the vendor manage people and tools, avoid direct attendance and discipline, verify qualifications, and audit actual performance. Key evidence: Keep the service scope, pricing model, deliverables, acceptance records, vendor management, worker instructions, access controls, and invoices. Important risk: Calling headcount supply an outsourcing project can be recharacterized as dispatch or direct employment. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Official authority: PRC Labor Contract Law as amended December 28, 2012

The employer should preserve documents it controls because employment cases allocate important proof burdens to the employer for contracts, payroll, attendance, rules and termination. Issue a legal hold, export systems reliably, organize a chronology, authenticate policies and signatures, and prepare witnesses before the arbitration deadline. Key evidence: Keep contracts, personnel file, policy consultation and acknowledgments, attendance, payroll, social insurance, performance, communications, investigation and termination records. Important risk: Missing employer-controlled records can lead the tribunal to accept the employee's account. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Official authority: PRC Labor Contract Law as amended December 28, 2012

A material reduction or restructuring of agreed compensation normally requires a lawful basis and mutual written agreement, while genuine discretionary items depend on their terms and practice. Map fixed and variable components, consult the employee, explain metrics and transition, obtain a signed amendment, and protect minimum and timely wage rights. Key evidence: Keep contracts, compensation plans, historical payroll, consultation records, amendment, approvals, performance data, and payslips. Important risk: Relabeling fixed pay as discretionary or imposing unilateral reductions can support wage and termination claims. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Official authority: PRC Labor Contract Law as amended December 28, 2012

A background check should be job-related, necessary, transparent and compliant with personal-information rules, using lawful sources and fair decision procedures. Provide notice, obtain consent where required, limit sensitive information, verify adverse findings, secure vendors, and retain data only as needed. Key evidence: Keep notices and consents, role-based criteria, vendor terms, source records, verification communications, decision notes, access logs, and deletion records. Important risk: Collecting irrelevant criminal, health or family information can create privacy and discrimination risk. Authority: PRC Labor Contract Law as amended December 28, 2012. Official source: https://flk.npc.gov.cn/detail?fileId=&id=2c909fdd678bf17901678bf74d7106b3&title=%E4%B8%AD%E5%8D%8E%E4%BA%BA%E6%B0%91%E5%85%B1%E5%92%8C%E5%9B%BD%E5%8A%B3%E5%8A%A8%E5%90%88%E5%90%8C%E6%B3%95&type=

Official authority: PRC Labor Contract Law as amended December 28, 2012