Leading commentary and perspectives on employment and labor law
When structuring an acquisition or disposal of a business in China, the transfer of employees is one of the key points that the parties need to consider.
Under PRC law, if an acquisition or disposal is structured as a share deal, so that the buyer acquires the equity in the target company, the employees of…
Having developed over decades, the social insurance scheme in China has been gradually unified nationwide and is now primarily regulated by the PRC Social Insurance Law (SIL), which came into effect in 2011. Prior to the SIL, the social insurance scheme in China was regulated by various administrative regulations.
The SIL consolidated the…
Written contract requirement
PRC law requires that an employer must enter into written employment contracts with each of its employees within one month after the commencement of the employment.
Where an employer fails to enter into a written employment contract within such period of time, the employer is liable to pay double salary to the…
Working Hours
PRC law recognises three categories of working hour systems: (i) the Standard Working Hour System; (ii) the Flexible Working Hour System; and (iii) the Comprehensive Working Hour System. Each system varies in its applicability to employment positions and industries within the PRC.
The Standard Working Hour System provides that an employee may work…
PRC law has stringent restrictions on the termination of employment contracts. Generally, an employment contract can be terminated by mutual agreement between the employer and the employee. In the absence of the employee’s consent, PRC law provides very limited grounds for termination of an employment contract by the employer. There are two categories of statutory…
A labour dispatching arrangement in the People’s Republic of China (PRC) is essentially a method for indirectly engaging staff via an employment agency (commonly termed a dispatching agent). It is regulated by the PRC Employment Contract Law (the ECL).
A typical dispatching arrangement involves three parties (i.e. the employee, the dispatching agent …
Restrictive covenants imposed on employees in the People’s Republic of China (PRC) are normally in the form of non-compete and non-solicitation obligations. PRC law sets out some general principles on non-compete obligations but is silent on non-solicitation obligations which are therefore generally subject to the mutual agreement of the parties concerned.
As a general principle…
