Employment contracts China

What should an employment contract in China include?

Under China’s Labour Contract Law, a written labour contract is mandatory and must contain specific clauses. 

• Employer’s full legal name, registered address, and legal representative or principal person in charge;
• Employee’s full name, address, and valid ID number;
• Contract term (start date and, if applicable, end date or project completion condition);
• Job description and work location;
• Working hours, rest days, and leave arrangements;
• Remuneration details (base salary, payment method and timing, allowances/bonuses if any);
• Social insurance (and housing fund where applicable);
• Labour protection, working conditions, and occupational hazard protections (where relevant);
• Any other terms required by local regulations.

Both parties must read, understand, and sign the contract; the employee should receive a copy. Contracts must be in Chinese; an English translation is commonly used for foreigners, but the Chinese version governs.

What types of employment contracts exist in China?

China recognises three main contract types under the Labour Contract Law.

• Fixed-term contracts: Have a defined start and end date agreed by both parties; the most common for new hires.
• Open-ended (non-fixed-term) contracts: No fixed end date; employees can generally request this after two consecutive fixed-term contracts or in other statutory situations.
• Project-based (task-completion) contracts: End upon completion of a specific task or project; no probation is permitted for this type.

Note: Probation periods are allowed for fixed-term and open-ended contracts but are capped by law based on contract length (e.g., up to 6 months only for longer contracts; shorter caps apply for 1–3 year terms).

How to hire employees in China?

To hire in China, employers generally need a local legal entity, a tax ID, and a business bank account to run payroll and withhold taxes. 

Employers must also comply with local rules on minimum wage, working hours, leave, social insurance and housing fund, and termination/severance. 

To avoid entity setup and administrative overhead, businesses can partner with a global expansion provider such as Native Teams. Thanks to our Employer of Record solutions, we handle contracts, payroll, taxes, and HR compliance in China.