The labor market in China consists of around nine hundred million employees. It is quite acceptable that the rising number of employees will automatically give rise to the number of labor dispute cases. 1.75 million labor related cases have been reported till now this year and the number is likely to increase in the coming days.
With the development of employees’ sense of rights, is that more and more arbitration and litigation cases are being heard every year, albeit the number of disputes remains relatively small. Part-time and full-time are the two types of employees foreign companies can have in China. Today we are going to thoroughly explain you everything about Chinese part-time employment law.
Chinese Law defines three types of workers as “part-time”. These categories are:
- Workers doing consulting work, over an unspecified or varying amount of time
- Workers doing part-time work of a set number of hours/days per week
- Workers who used to do full-time hours, but due to unforeseen circumstances now work less hours/days than previously
Here’s a list of hand-picked provisions in a part-time employment contract, having the knowledge of them can prove helpful to you in your day to day business in China.
- Working Hours-
Foreign companies should properly define the working hour of their part-time employee in their employment contract. They need to take special care that the specified working hour mentioned in the contract should not exceed the legal maximum hour permitted by the Chinese court. To make it simpler for you it means that your part-time employee’s working time cannot exceed either 5 hours a day or 24 hours a week. The amount of days/hours should be clearly specified in the employee’s contract. If they are changing from a full-time contract due to some sort of unforeseen circumstance, then the written contract should be changed.
There should be no provision for Probation Period in the contracts. It has been seen that many employers put illegal Probation Period clause that increases the likelihood of the employer losing the case.
In the regions of Beijing and Shenzhen, the payment cycle for the part-time employees is fifteen days and in per with the full-time employees, all the national, provincial and local minimum wage requirements should be met properly for part-time employees as well.
- Social Insurance Contributions-
Although the implementation varies by municipality and province, it is mandatory that the foreign employers must now contribute to the social insurance system of their part-time employees. The rule requires that along with the full-time employees foreign companies need to enroll their part-time employees in one of the five social insurance programs from the following:
- Basic Pension
- Basic Medical Insurance
- Work-Related Injury Insurance
- Unemployment Compensation
- Maternity Insurance
- Annual Paid Leave-
Foreign employers don’t need to offer annual paid leave to their part-time employees. But it is important that you have clearly defined everything in your employment contract about the annual paid leave. The employment documents should be free of any type of inconsistencies.
Just as you maintain all the rules carefully while terminating your full-time employee, you need to do the same at the time of terminating your part-time employee. Doing otherwise could lead expensive and time-taking legal dispute.
It is a matter of real concern for the foreign companies and makes it essential to take special care while drafting employment contracts in China. They have to be a bit more cautious and knowledgeable regarding the part-time employment law of China.