Labor Law of the People's Republic of China

Introduction

The Labor Law of the People’s Republic of China, adopted in 1994 and amended several times, governs individual employment relationships and establishes minimum standards for working conditions.

Employment Contracts

Employment contracts must be in writing and specify term, job content, working conditions, and compensation. Fixed-term contracts convert to indefinite-term contracts after two consecutive renewals. The Labor Contract Law of 2007 further strengthened protections.

Working Conditions

The standard working week is 40 hours with at least one day off. Overtime is limited to 36 hours per month with premium pay (150% on weekdays, 200% on weekends, 300% on holidays). National minimum wages are set by provincial governments.

Termination

Employers may terminate employment for cause (disciplinary violations, incompetence after training) or without cause (redundancy) with notice or payment in lieu. Severance pay is required for most terminations. Unfair dismissal claims may be brought to labor arbitration.