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Hiring local staff: contracts & social insurance

  • A written labour contract is essentially mandatory; sign it before the employee starts or within 30 days, or the employer faces double-wage penalties for the delayed months.
    书面劳动合同近乎强制;须在员工入职前或 30 日内签署,否则用人单位须就迟延的月份支付二倍工资。
  • If no written contract is signed for a full year, the law deems an open-ended (non-fixed-term) contract to have been concluded.
    满一年未订立书面合同的,法律视为已订立无固定期限劳动合同。
  • Probation caps are tied to contract length (maximum 6 months) and must be at least 80% of the contract wage; probation may be agreed only once and is included within the contract term.
    试用期上限依合同期限而定(最长 6 个月),且工资不低于合同工资的 80%;同一劳动关系仅可约定一次试用期,并包含在合同期限内。
  • Social insurance (五险) and the housing fund (一金) are mandatory from the first day of employment — even during probation — and the employer must register within 30 days.
    社会保险(五险)与住房公积金(一金)自用工之日起强制缴纳——即便在试用期——且用人单位须于 30 日内办理登记。
  • China has no at-will dismissal; termination follows narrow statutory grounds, and severance is typically one month’s wage per year of service (capped at three times the local average wage for top earners).
    中国不实行任意解雇;解除须符合狭窄的法定情形,经济补偿通常为每满一年一个月工资(高收入者以当地平均工资三倍为上限)。
  • A non-compete clause is enforceable only for senior managers, senior technicians, and other confidentiality-duty staff, for no more than two years, and only if the employer pays compensation during the restriction.
    竞业限制仅对高级管理人员、高级技术人员及其他负有保密义务的人员有效,期限不超 2 年,且用人单位须在限制期内支付补偿方可执行。

Hiring local staff: contracts & social insurance | 雇佣本地员工:合同与社保

Overview

Hiring your first local (Chinese) employees is a milestone for any foreign-invested enterprise (FIE) in China — and a moment rich in mandatory rules. China’s employment framework is statute-heavy: a written labour contract is essentially compulsory, probation is capped by law, and social insurance plus the housing fund (“五险一金”) must be contributed from day one of employment. Missteps here are common, costly, and easy to avoid with the right setup. This article walks through the *Labour Contract Law*, written-contract timing, probation limits, the social-insurance and housing-fund regime, and the rules on lawful termination.

It is informational guidance, not legal advice; local practice varies by city, so confirm details with a qualified PRC employment adviser.

The written contract and when to sign it

The *Labour Contract Law* (effective 2008, amended 2012) makes a written contract the norm. Employment relations are established from the date the employee begins work (用工之日). Where a relationship exists but no written contract is signed simultaneously, the employer must sign one within one month of commencement.

The penalty for delay is steep: if the employer fails to sign a written contract for more than one month but less than one year, it must pay the employee double wages for each of those months. After one year without a contract, the law deems an open-ended (non-fixed-term) contract to have been concluded. The lesson is simple — sign before the employee starts, or at the very latest within 30 days.

A compliant contract should contain the statutory mandatory clauses: employer and employee particulars, contract term, job content and work location, working hours and rest/leave, remuneration, social insurance, labour protection and occupational-hazard safeguards, and other matters required by law. Additional items — probation, training, confidentiality, and supplementary benefits — may be agreed separately.

Probation limits

Probation is permitted but strictly bounded by contract length:

Contract termMaximum probation
< 1 year (fixed)1 month
≥ 1 year and < 3 years2 months
≥ 3 years (fixed) or open-ended6 months
< 3 months, or task-basedNo probation allowed

Two further rules matter: the employer and the same employee may agree on probation only once, and the probation period is included within the contract term (a contract that stipulates only a probation period is treated as the contract itself). During probation, the wage must be at least 80% of the contract wage and no less than the local minimum wage. Termination during probation is allowed only on narrow statutory grounds (e.g., failure to meet recruitment conditions, serious breach of rules, or the Art. 40(1)–(2) circumstances), and the employer must state reasons.

Social insurance and the housing fund (五险一金)

From the first day of employment, the employer must enroll the employee in the statutory social-insurance scheme and the housing fund. Together these are colloquially “五险一金” (five insurances and one fund):

  • Five insurances (社会保险): pension (养老), medical (医疗), unemployment (失业), work injury (工伤), and maternity (生育). The *Social Insurance Law* requires the employer to apply for social-insurance registration within 30 days of employment; both employer and employee contribute, with the employer bearing the larger share. Rates are set locally and differ by city.
  • Housing fund (住房公积金): a separate, earmarked savings fund for housing, managed by local housing-fund centres. Both parties contribute a percentage of salary (often matching rates within a local band).

Non-payment or under-payment is a frequent compliance failure and draws penalties and back-payment orders. FIEs should register with the local social-insurance and housing-fund authorities at setup and run payroll through a compliant provider. Note that even during probation, social insurance and the housing fund are mandatory — a “we’ll add it after confirmation” arrangement is unlawful.

Termination and severance

China does not use pure “at-will” dismissal. Termination routes include:

  • By the employee: generally with 30 days’ written notice (3 days during probation).
  • By the employer for cause (Art. 39): e.g., proven failure to meet recruitment conditions during probation, serious breach of rules, dereliction causing major damage, concurrent employment, fraud in concluding the contract, or criminal liability. No severance is payable.
  • By the employer with notice + severance (Art. 40): illness/injury unable to do the original or reassigned job, incompetence even after training/reassignment, or material change of circumstances making the contract impossible — with 30 days’ notice or one month’s wage in lieu, plus severance.
  • Economic layoff (Art. 41): mass redundancy under prescribed conditions and procedures.

Open-ended contracts are not “iron rice bowls”: they can still be terminated on the same statutory grounds, but they are triggered once an employee has completed two consecutive fixed terms and the parties renew, or after long service (generally 10 years). Severance (经济补偿) is typically calculated at one month’s wage per year of service (with pro-rated fractions), capped at three times the local average wage for higher earners. A non-compete (竞业限制) clause is enforceable only for senior managers, senior technicians, and other personnel with confidentiality duties, for no more than two years, and only if the employer pays compensation during the restriction period.

What to do next

  • Sign the written labour contract before the employee starts, or within 30 days at the latest — never rely on a verbal understanding.
  • Keep probation within the statutory caps tied to contract length, and pay at least 80% of the contract wage.
  • Register for social insurance and the housing fund within 30 days of hire; run payroll through a compliant provider and never skip contributions during probation.
  • Build contracts with the mandatory clauses and add confidentiality/non-compete only where the role justifies it (with compensation for non-compete).
  • Document performance and disciplinary processes so any termination rests on clear, statutory grounds.
  • Confirm city-specific contribution rates and thresholds with a local PRC employment adviser before onboarding.

Sources

  • Ministry of Human Resources and Social Security (MOHRSS) — Labour Contract Law of the PRC: https://www.mohrss.gov.cn/xxgk2020/fdzdgknr/zcfg/fl/202011/t20201102_394622.html
  • State Council (gov.cn) — explanatory note on probation, contracts and social insurance: https://www.gov.cn/lianbo/bumen/202312/content_6922243.htm
  • Ministry of Human Resources and Social Security (MOHRSS, official portal): https://www.mohrss.gov.cn

Related reading

  • see also: Labour dispatch and secondment rules / 劳务派遣与借调规则
  • see also: Work visas & residence permits / 工作签证与居留许可

雇佣本地员工:合同与社保

概述

雇佣首批本地(中国)员工,是任何外资企业在华的里程碑,也是强制规则密集的时刻。中国的用工框架高度法定化:书面劳动合同近乎强制,试用期受法律上限约束,且社会保险与住房公积金(”五险一金”)须自用工之日起缴纳。此类失误常见、代价高,却可借正确设置轻松避免。本文梳理《劳动合同法》、书面合同时点、试用期上限、社保与公积金制度,以及合法解除的规则。

本文为信息性指引,非法律意见;各地实践有差异,请以合格的中国劳动用工顾问确认细节。

书面劳动合同与签署时点

《劳动合同法》(2008 年施行,2012 年修正)以书面合同为常态。劳动关系自用工之日起建立。已建立劳动关系而未同时订立书面合同的,用人单位应自用工之日起一个月内订立。

迟延的后果严厉:用人单位超过一个月不满一年未订立书面合同的,应向劳动者每月支付二倍工资;满一年未订立的,视为已订立无固定期限劳动合同。结论很简单——在员工入职前,最迟 30 日内签署。

合规合同应包含法定必备条款:用人单位与劳动者信息、合同期限、工作内容与地点、工作时间与休息休假、劳动报酬、社会保险、劳动保护与职业危害防护,以及法律要求的其他事项。试用期、培训、保密、补充福利等可另行约定。

试用期上限

允许约定试用期,但严格受合同期限约束:

合同期限试用期上限
不满 1 年(固定)1 个月
1 年以上不满 3 年2 个月
3 年以上(固定)或无固定期限6 个月
不满 3 个月,或以完成一定任务为期限不得约定试用期

另有两条关键规则:同一用人单位与同一劳动者只能约定一次试用期;试用期包含在合同期限内(仅约定试用期的,该期限视为合同期限)。试用期内工资不得低于合同约定的 80%,且不低于当地最低工资标准。试用期解除仅限狭窄的法定情形(如不符合录用条件、严重违纪,或第四十条第一、二项情形),且须说明理由。

社会保险与住房公积金

自用工之日起,用人单位须为员工办理法定社会保险与住房公积金登记,合称”五险一金”:

  • 五险(社会保险): 养老、医疗、失业、工伤、生育。《社会保险法》要求用人单位自用工之日起 30 日内 办理社保登记;用人单位与劳动者共同缴纳,单位承担较大比例。费率由地方规定,城市间不同。
  • 住房公积金: 专项用于住房的储蓄基金,由地方住房公积金中心管理。双方按工资一定比例(通常在区间内对等)缴存。

不缴或少缴是常见合规失误,会招致处罚与补缴。外资企业应在设立时于当地社保与公积金机构登记,并通过合规机构发放工资。注意:即便在试用期,社保与公积金亦属强制——”转正后再缴”的安排违法。

解除与经济补偿

中国不实行纯粹的”任意解雇”。解除路径包括:

  • 劳动者解除: 一般提前 30 日书面通知(试用期内提前 3 日)。
  • 用人单位过错性解除(第三十九条): 如试用期内被证明不符合录用条件、严重违纪、严重失职造成重大损害、兼职严重影响本职、欺诈订立合同、被追究刑事责任等。无需支付经济补偿。
  • 用人单位非过错解除(第四十条): 患病或非因工负伤不能从事原及另行安排工作、经培训/调岗仍不能胜任、客观情况重大变化致合同无法履行——提前 30 日通知或额外支付一个月工资,并支付经济补偿。
  • 经济性裁员(第四十一条): 符合法定条件与程序的大规模减员。

无固定期限合同并非”铁饭碗”:仍可基于同样法定情形解除,但在连续订立两次固定期限合同后续订、或长期服务(一般满 10 年)时触发。经济补偿一般按每满一年支付一个月工资计算(不足部分按比例),高收入者以当地平均工资三倍为上限。竞业限制仅对高级管理人员、高级技术人员及其他负有保密义务的人员有效,期限不超 2 年,且用人单位须在限制期内支付补偿方可执行。

下一步建议

  • 在员工入职,最迟 30 日内签署书面劳动合同——切勿依赖口头约定。
  • 试用期须落在与合同期限对应的法定上限内,且支付不低于合同工资 80%。
  • 自用工之日起 30 日内办理社保与公积金登记;通过合规机构发放工资,试用期亦不得漏缴。
  • 合同必备条款齐备;仅在岗位确有必要时附加保密/竞业限制(并支付竞业限制补偿)。
  • 记录绩效与纪律流程,使任何解除都立于清晰的法定情形之上。
  • 入职前就城市特定的缴费比例与基数,咨询当地劳动用工顾问。

来源

  • 人力资源和社会保障部(MOHRSS)——《劳动合同法》:https://www.mohrss.gov.cn/xxgk2020/fdzdgknr/zcfg/fl/202011/t20201102_394622.html
  • 国务院办公厅(gov.cn)——试用期、合同与社保解读:https://www.gov.cn/lianbo/bumen/202312/content_6922243.htm
  • 人力资源和社会保障部(MOHRSS,官网):https://www.mohrss.gov.cn

相关阅读

  • see also: 劳务派遣与借调规则 / Labour dispatch and secondment rules
  • see also: 工作签证与居留许可 / Work visas & residence permits

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