China (CN)
China is one of the world's largest economies and most important expat destinations, combining global business hubs such as Shanghai, Beijing, Shenzhen, Guangzhou, and Hangzhou with deep history, fast infrastructure, and a highly digital daily-life ecosystem.
Employment Rights
Sick leave, dismissal protection and red flags in China.
China employment is governed by the Labour Law 1994, the Labour Contract Law 2008 (amended 2012), local city/provincial regulations, and the written employment contract. The Ministry of Human Resources and Social Security (MHRSS) administers national labour policy; disputes are handled by labour arbitration commissions (first instance) and the courts on appeal. Foreign employees must also maintain valid work authorisation (Work Permit Type A/B/C and Residence Permit for Work) tied to their employer and job title. Changing employer, job title, or work location typically requires permit amendment. Social insurance (pension, medical, unemployment, maternity, work injury) applies and is administered through local social security bureaus.
Sick leave
Rules: Employees are entitled to a "medical treatment period" for illness or non-work-related injury, ranging from 3 months (less than 1 year of total work experience) up to 24 months (20+ years of experience, including 15+ years with the same employer), under Provisions on Medical Treatment Period for Sick Employees 1994. During this protected period the employer cannot terminate. Sick leave pay is calculated at a percentage of the employee's salary based on service length and local city minimum sick-leave pay standards (city-specific, e.g. Shanghai has specific rates).
Doctor note: From Day 1 — a certificate from a recognised hospital or clinic is required for any sick leave. Employers typically require documentation upon return or within 24–48 hours of absence; the employment contract or company policy specifies the exact requirement.
Employer pay: For the first 6 months of sick leave, pay ranges from 60% to 100% of salary depending on length of service: 100% for ≥20 years; 80% for 10–20 years; 70% for 5–10 years; 60% for <5 years (approximate national standards; city minimums may be higher). After 6 months: 40–60% depending on service length, subject to local minimum wage floors. The employer pays throughout the medical treatment period.
Long-term: During the medical treatment period the employment contract is protected from termination. After the medical treatment period expires and the employee cannot resume normal or alternative work, the employer may terminate with 30 days' written notice (or one month salary in lieu) plus statutory severance. Long-term illness benefits beyond employment are managed through social insurance (medical insurance and, where applicable, disability assessment through the social security system).
Dismissal protection
Law: The Labour Contract Law 2008 sets out exhaustive grounds for lawful termination. Unilateral employer termination requires either (a) statutory grounds (Article 39: serious misconduct, fraud, dual employment causing damage, etc.) with no notice; or (b) non-fault grounds (Article 40: inability to do the job, objective circumstance change) with 30 days' written notice or payment in lieu plus statutory severance. Illegal termination entitles the employee to reinstatement or double severance compensation (2× the normal one-month-per-year severance rate).
Deadline to sue: Labour arbitration must be filed within 1 year from the date the employee knew or should have known of the violation of their rights. For salary non-payment disputes the limitation period runs during the employment relationship without interruption. Arbitration is mandatory before court proceedings; disputes must first go to the local Labour Dispute Arbitration Commission. Act promptly — gather your employment contract, payslips, and correspondence immediately after dismissal.
Probation
Probation periods under the Labour Contract Law 2008 scale with contract duration: up to 1 month for fixed-term contracts of 3 months to 1 year; up to 2 months for contracts of 1–3 years; up to 6 months for contracts of 3+ years or open-ended contracts. Only one probation period is allowed per employee per employer regardless of role changes. Probation is void for short fixed-term contracts (under 3 months) and completion-based contracts. During probation, the employer may dismiss without notice if the employee fails to meet the job requirements as defined at the time of hiring. Probation salary must be at least 80% of the agreed post-probation salary and not below the local minimum wage.
Notice periods
Employer: 30 days' written notice or 1 month salary in lieu for non-fault termination (Article 40). Employee resignation: 30 days' notice (3 days during probation). Summary termination without notice or pay: limited to Article 39 serious grounds (gross misconduct, fraud, criminal conviction, etc.). Statutory severance on employer-initiated termination (except Article 39 gross misconduct): 1 month's salary per year of service (capped at 3× the local average monthly wage per year; max 12 years = 12 months at cap for high earners).
Working time
Max hours: Standard working hours system: 8 hours per day and 40 hours per week (Labour Law 1994, Article 36). Comprehensive working-hours and flexible systems require government approval and are used for specific roles (e.g. senior managers, field workers). Without an approved alternative system, the 40-hour standard applies. Total working hours including overtime must not exceed 44 hours per week on average.
Min rest: At least 1 rest day per week (typically Saturday and Sunday for office workers, or another designated day). Minimum break of 1 hour per 8-hour shift is standard practice. National statutory holidays (currently 13 days per year including Golden Week periods) are in addition to annual leave.
Overtime: Overtime must be with employee consent and is limited to 1 hour per day (3 hours/day in special circumstances), maximum 36 hours per month. Pay: 150% of regular wage for weekday overtime; 200% for statutory rest-day overtime if no compensatory rest is given; 300% for work on statutory public holidays (no substitution allowed for statutory holidays).
Vacation
Statutory annual leave scales with total cumulative work experience (not just service with the current employer): 5 days after 1–10 years of total work; 10 days after 10–20 years; 15 days after 20+ years. Employees with less than 1 year of total work experience have no statutory entitlement. Expat contracts in multinationals often provide 15–20 days or more. Unused annual leave must be compensated at 300% of daily wage if the employer fails to arrange leave and the employee does not take it.
Anti-discrimination
The Labour Law and Labour Contract Law include equality principles prohibiting discrimination in hiring and employment on grounds of ethnicity, race, sex, religion, and disability. Specific protections exist for female workers (against dismissal during pregnancy, maternity leave, and breastfeeding periods) and workers in their medical treatment period (protected from termination). There is no single dedicated anti-discrimination statute comparable to the EU Equality Directives; enforcement is through labour arbitration and courts. Practical enforcement of broader equality claims differs significantly from European or North American standards.
Contract red flags
- !Employer asks you to work before the Work Permit and Residence Permit for Work are issued and validated — working without a valid work permit is illegal and carries serious immigration consequences.
- !Contract salary is lower than the offer letter, or compensation is split into undocumented cash allowances — all components must appear on the signed Chinese labour contract to be enforceable.
- !Non-compete clause with no compensation payment — under Chinese law, post-employment non-compete obligations require the employer to pay monthly compensation during the restricted period; an uncompensated non-compete is unenforceable.
- !Employer refuses to provide a written Chinese labour contract within 1 month of starting — this is a legal violation entitling you to double wages for each month without a written contract.
- !You are sponsored for one city or employer but asked to work at a different location or company — this requires permit amendment and is a violation of your work authorisation if not corrected.
- !Social insurance registration not completed — confirm registration with all five social insurance funds (pension, medical, unemployment, maternity, work injury) through the local social security bureau within the first month.
- !Probation period stated as longer than the law permits — check contract duration against the legal maximum probation period; any excess is void by law.
Employment Rights
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