FAQs: Employment in China
A part-time job in China typically refers to a flexible employment arrangement where an individual works for an employer for fewer hours than a full-time employee. Part-time employment is often used for students, retirees, or individuals seeking supplementary income.
Yes, according to the Labor Contract Law, an employer is required to sign a written employment contract with an employee within one month from the date the employee starts working.
If an employer does not sign a written employment contract within one month of the employee starting work, the employer may be required to pay the employee double the wages for the period beyond the one-month grace period.
Technically, an employment relationship is considered established from the day you start working, even without a signed contract. However, it is advisable to have a written contract in place to protect both parties’ rights and obligations.
In such situations, it is recommended that both parties communicate and negotiate an extension or alternative arrangements. The specifics would depend on the circumstances and any relevant government guidance or regulations in place during the emergency period
The maximum duration of a probation period depends on the length of the labor contract: not more than one month for contracts lasting three months to one year, not more than two months for contracts lasting one to three years, and not more than six months for contracts lasting three years or more and for open-ended contracts.
FAQs: Payroll in China
You should apply for a renewal of your social insurance card at least 60 days before its expiration to avoid any disruption in benefits. The renewal process typically involves visiting your local social insurance office or using online services, depending on the procedures in your city.
Overtime pay standards in China are regulated by the Labor Law. For work outside of regular hours, employees should be paid at least 150% of their regular wage. For work on rest days, it should be at least 200%, and for work on public holidays, it should be at least 300% of the regular wage.
Employers may be eligible for a temporary deferral of the unit portion of employees’ basic medical insurance payments under certain conditions, such as financial hardship. They must ensure that the deferred payments are settled by the specified deadline, typically within a few months, without incurring late fees or interest.
In China, you can verify the validity of your social insurance card by visiting the social security office with your ID and social insurance card, using online services provided by the local social security website, or by calling the national social security hotline “12333.”(Website: http://si.12333.gov.cn)
During national holidays such as the Spring Festival in China, employees may receive additional holiday pay on top of their regular wages, depending on company policies and local regulations.
FAQs: China Visa & Work Permit
The application process for a Chinese Permanent Residence Card under the reunion category has become more complex, with enhanced examination of the foreign spouse’s permanent resident status in China.
Nonetheless, the application for a Permanent Residence Card has been simplified for legal entities and company executives in Shanghai’s “Double-Zones” and “Double Innovation” Areas. The focus of eligibility assessment now centers on business operations rather than personal tax contributions or the duration of stay in China.
Category A, known as Foreign High-end Talents, encompasses a range of elite foreign professionals who are critically required for China’s economic and societal progress and are in accordance with the nation’s top-tier foreign talent list. This group particularly includes:
- Individuals recognized by Domestic Talents Programs.
- Those meeting global benchmarks of professional excellence.
- Personnel who occupy roles that are promoted by the government and are in high market demand.
- Talents with innovative and entrepreneurial capabilities.
- Distinguished young professionals.
- Those scoring 85 points or above on the points assessment scale.
When applying for a Foreigner’s Work Permit, the following guidelines now apply:
- There are no specific age, education, or experience prerequisites.
- The no criminal record certificate can be processed through a pledge-based method.
- Individuals with a valid visa or residence permit can directly apply for the work permit upon arrival in China.
- The work permit can be granted for a term of up to five years
Foreign Professionals, recognized as Category B, align with the directives for hiring foreign workers in China and correspond to the evolving economic and social demands of the country, and fall within any of the following conditions, including (1) foreign professionals with a bachelor degree or above and 2 years and above related work experience. (2) Skilled talents with internationally recognized qualification certificates or in short supply. (3) Teachers of foreign languages. (4) Foreign talents with average salary income no less than 4 times the social average salary income of the previous year in Shanghai. (5) Special personnel under the relevant state regulations or for the implementation of special projects. (6) Professionals graded 60 points or more according to the points-based system.
Category C, known as Other Foreigners, consists of individuals hired to fulfill the domestic labor market’s needs in accordance with national policies and legal frameworks. This category includes: (1) foreign workers who comply with the applicable rules for employing foreigners in China; (2) those occupying temporary or short-term positions with a duration not exceeding 90 days; (3) individuals under quota-based management, which encompasses young foreigners arriving in China for internships through intergovernmental deals, foreign students following relevant regulations, graduates from foreign higher education institutions, and those working in specialized sectors such as long-range fishing.
FAQs: Pension Fund in China
A personal pension in China is a retirement savings plan with individual accounts, funded solely by the account holder with an annual contribution cap of 12,000 RMB, accumulating over time.
Joining a personal pension system offers immediate tax advantages, with the highest yearly pre-tax deduction for individuals set at 12,000 RMB.
To engage in a personal pension plan, an individual must establish two accounts: a personal pension account on the information platform for managing records and transactions, and a personal pension fund account with a bank for making contributions and handling product purchases and earnings.
When moving to a job in a different province, you can shift your previously paid pension insurance premiums to your new workplace. This allows you to combine these with your new contributions, ensuring that your pension insurance rights are fully and accurately recorded across both locations.
When an individual experiences a change in employment that involves relocation to a different province, it is necessary to facilitate the transfer of their pension insurance affiliation. This process is mandated to ensure the continuity and proper management of pension benefits as one transitions from one jurisdiction to another. Essentially, this entails the movement of your pension insurance records and contributions from the previous province to the new one, allowing for a seamless continuation of your pension insurance coverage in accordance with the regulations of the new location.
When employees change jobs across different provinces, they have the option to move their pension insurance from their previous workplace to the new one. This allows them to combine their pension contributions from both locations and build up a continuous record of their pension contributions and participation.
To initiate this transfer, workers can submit an application to the social security office at their new location. The process can also be completed online through the National Social Insurance Public Service Platform. Once the application is submitted, the social security agencies at both the old and new locations will coordinate to complete the transfer.
However, there are certain restrictions in place. As per the current rules, if a male is over 50 or a female is over 40 when they first start working and enroll in pension insurance in a place that is not their home, their pension insurance relationship cannot be transferred to a temporary account. The temporary account location cannot be used as the place to receive pension benefits. When these individuals become eligible for benefits, all contributions from the temporary account will be consolidated and transferred to the place where they will receive their benefits, ensuring that their retirement benefits are not impacted.
If someone is uncertain about their future employment location or finds the transfer process cumbersome, they may choose to delay the transfer. Later on, they can apply to the social security agency where they plan to receive benefits to collect their pension insurance relationship and the associated funds, and then begin to enjoy their pension insurance benefits.
FAQs: China HR Legal
The legal notice period varies depending on the length of the employment contract. For contracts less than three years, a 30-day notice is required. For contracts of three years or more, a 30-day notice is also required unless the contract specifies a longer notice period.
If an employer does not provide a renewed contract on the same conditions and compensation, they are obligated to pay the employee severance.
The legal requirement for maternity leave in China is 98 days, which includes 15 days of pre-natal leave. In some regions, additional leave may be granted.
In China, if an employee experiences a traffic accident or an incident involving urban railways, passenger ferries, or trains while commuting to or from work, and the employee is not at fault, the injury may be classified as a work-related injury.
In China, if an employee passes away from a sudden illness while at work or within 48 hours after being admitted to the hospital due to a work-related accident, this can be considered a work-related death.
Based on the Shenzhen Work Injury Insurance Regulations, part-time employees are indeed entitled to injury benefits in the event of a workplace injury. It is a legal requirement for employers to pay work injury insurance premiums for all their employees, including part-time staff. If an employer fails to fulfill this obligation and an employee suffers a work-related injury, the employer becomes responsible for covering the costs associated with the injury as per the Work Injury Insurance Regulations. This includes medical expenses, compensation for any temporary or permanent disability, and other benefits as outlined by the regulations. Failure to provide the necessary insurance can result in the employer being held liable for the full range of costs that would have been covered by the insurance.
In the case of an employee experiencing an injury due to an accident or being confirmed with an occupational disease, the employer is obligated to submit a work-related injury determination application to the local social insurance administration within 30 days of the accident or the occupational disease diagnosis. If there are exceptional circumstances, the application deadline can be extended with approval from the social insurance administration. Should the employer neglect to apply for the work-related injury identification as required, the injured worker or their designated representative, or a union representative, has the right to make the application directly to the social insurance administrative department within one year from the date of the injury or the date the disease is recognized as work-related.
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