Valuable Points of China Part-Time Employment Contract

Considering the difficulties of Chinese labor laws and high employer liabilities, a company should take special care while drafting a part-time employment contract in China. From hiring to termination to compensation, the employment law of the People Republic of China covers every aspect of employment and there is no room to enforce new mechanism in addition to these statutory mechanisms.

According to China’s Labor Contract Law, professionals working no more than 4 hours daily, 24 hours weekly for the same employer are considered part-time staff. This applies to:

  • Seasonal Jobs
  • Temporary Jobs
  • Online Jobs

An oral agreement between the employer and part-time employees is termed legal in China. However, China business lawyers suggest to that written contract should be there to avoid any conflict in the future. It will be to the parties’ interests to do so. In case a part-time employee is getting a full-time position, a labor contract becomes mandatory.

If the employment relationship is part-time, employers are not required to pay contributions to social or medical insurance. They are still required to make contributions for industrial injury insurance. 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:

I. Basic Pension

II. Basic Medical Insurance

III. Work-Related Injury Insurance

IV. Unemployment Compensation

V. Maternity Insurance

Many places in China (e.g., Beijing, Shenzhen) mandate a 15 day payment cycle for part-time employees, which differs from the rules for full-time employees who are usually paid monthly.

Chinese law allows either party to terminate the labor contract at any time, without prior notice nor justification. In addition, employers are not required to pay severance upon the termination of part-time employees.

Multinational corporations must localize their global employment policies and relevant practices in view of the special requirements of Chinese employment law. A company employing part-time employees should be aware of heightened risks for IP security, as well as potential conflicts of interest that come if someone is working two jobs at once.

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Know the Most Important Legal Contracts in China

Contracting in China is a daunting task. An uncertain legal environment and perceived difficulties over enforcement all play their part. However, by applying certain common sense principles from the outset, and understanding key Chinese legal requirements, risks can be reduced. Labour contracts shall become legally binding once they are concluded in accordance with law. Here are few aspects that global employers should take care of while employing people in China.

A well-documented employment contract

The parties involved shall fulfill obligations stipulated in labor contracts. In the employment system of China, it is the well-documented employment contracts that are the most important part. Unlike the United States of America, where an employer can fire an employee at any time during his/her service, in China, the sudden termination of an employee could trigger a legal battle for the foreign companies. If you are an employer in China, all the full-time employees of your company must have a written employment contract with you, otherwise you could face penalties and administrative fines. Another downside of not having a written contract with your employees is that, Chinese authorities may treat it is an open-term employment agreement without any definitive end date. You certainly don’t want to face this situation.

A well-documented luxury products contract

Companies selling luxury products in China are faced with varied problems. There are various problems from a business perspective. Normally, the sellers are at risk much more than the buyers. The premium luxury market has slowed down and this trend still continues in 2017. this is particularly true for those companies which depend on gifting. However, it is not totally disappointing and bleak.

A well-documented copyright law contract

China copyright law is not that much different from USA copyright law. Most of the cases in China, copyrights arise as soon as an original work is created, even if the work executes outside of China. The executor needs not to register the copyright issue in China to be secured in that country. But it is always recommended to register because it is far easier and faster to get websites like Tmall and Taobao to take down infringing goods and to get China customs to stop infringing goods from leaving the nation. Also it makes sense to be clear – in writing – with your representatives in the matter of who claims the copyrightable works the representatives make as amongst you and them.

A well-documented cyber security law contract

China’s new cybersecurity law came into effect from 1st of June 2017. The law focuses on protecting personal information and individual privacy, and standardizes the collection and usage of personal information. As such, companies will now be required to introduce data protection measures, and sensitive data for instance, information on Chinese citizens or relating to national security must be stored on domestic servers.

Conclusion

The PRC Contract Law requires that the terms of the acceptance shall be identical to those of the offer. PRC law distinguishes between material and non-material alterations to the offer.

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