|
4.What are problems needed to be carefully considered while employment contract is working?
Labor contracts should clearly define relevant personal treatment and welfare, such as wage, working hours and holiday.
According to Labor Law, different provinces implements the different system of minimum wages. Specific standards on minimum wages should be determined by the governments of provinces.10 For instance, establishing a WFOE in Shanghai must follow Shanghai municipality rules, such as standard of the lowest wage which is 690 RMB (excluding any social insurance). Companies can independently determine its form of wage and wage level for employee, but should consider advices from Trade Union. Wages should be paid monthly to employees themselves in cash without being deducted or delayed. Also companies must take part in social security insurance, annuities, medical allowance for employee, and such welfare measures should come from profit after tax.15
According to Chinese law, working hours, formally, should not exceed more than eight hours a day nor more than five days a week.16 Companies may extend working hours due to the requirements of its production or business after consultation with the trade union and laborers, but the extended working hour for a day shall generally not exceed three hours a day and not exceed 36 hours a month.17 However, employees doing extended working hours must be paid higher remunerations than those doing normal working hours.18 Also companies must promise their employees no less than one day off and legal holiday.19 When employees hold Certificates of One Child from government or getting marry and procreate is later than normal regulation, then companies must give employees more holidays and bonus.20
There are limited conditions about probation period of working and resignation of employees. Probation period of working was not compelled in PRC, but company may request such practice with employee.21The longest probation period of working can not exceed six months.22 Also company may revoke the labor contract with an employee when he can not meet the requirements for recruitment during the probation period or seriously violates labor disciplines and law. Especially, signing contract of probation period of working leads to transgress Labor Law.23 So probation period of working should be defined in labor contract.
|
