How labor disputes are processed in China?

All labor disputes are required to be handled according to law and in a timely manner. Chinese government encourages both parties in a dispute to solve their problems through negotiation and consultation. Chinese laws and regulations clearly define the procedures and government bodies in charge of the settlement of labor disputes. According to the regulations, […]

How to protect my trade secrets before they revealed?

You may incorporate detailed clauses, such as confidentiality and non-competition clauses, into the employment contract. You may also have your potential employees sign a legal document stipulating that they will not divulge their former employers’ trade secrets in order to show that they have no intention to disclose another company’s trade secrets. In addition, you […]

Should I have to pay special attention to women employees?

Yes. Chinese women are given special concern in the job market. The Constitution of the PRC, Chinese Labor Law, and Law on the Protection of the Rights and Interests of Women all contain special provisions on the protection of women’s rights to employment. The state protects the right of women to work on equal terms […]

What is the requirement for probation period?

Employers can require a probation period in the employment contract. However, the probation period should not exceed statutory period and it should be in correspondence with the length of the contract term. Generally speaking, the probation period should not exceed 6 months at most. During this period, either contracted party may terminate the contract without […]

What are the social welfares in China?

There social welfares comprise pension, injury, unemployment, housing fund, medical insurance, maternity insurance, etc. Except for injury and maternity insurances borne only by employers, all other social welfares should contributed jointly by employers and employees. The portion borne by employees should be withheld by employers and paid to relevant social welfare government bodies on a […]

How employees overtime work should be paid?

Chinese labour law clearly regulated the payment method for employee’s overtime work. Overtime should not exceed three hours per day and 36 hours per month. For the overtime, you need to pay according to following rate. ü   150% of regular wage for overtime in normal working day ü   200% of regular wage for work on public holiday, […]

What are the components of employee salary?

Different companies may have different salary policy and the components or names of the components may differ. Generally speaking, salary shall include basic salary, bonus, overtime pay, allowance and subsidy or other pay for special assignments. Various social welfares borne by employees should be deducted for individual income tax calculation purpose.

Has the Chinese labour stipulated a minimum wage?

Yes. Ministry of Labour requires all provinces, autonomous region and directly administered cities should set the minimum wage. All employers should meet these requirements. The minimum monthly wage is generally several hundred RMB. In Beijing, for example, the minimum wage for the year 2005 should be RMB 580 per month or RMB 3.47 per hour.

What aspects should I pay attention to when designing my stock option scheme?

Firstly, you need to understand what your employees really want. If they prefer a higher salary, the option granted to him/her shall not have desired incentive effect. Secondly, you need to think about to what levels of employees you should grant how many quantities of options. Top management, for example, may prefer more options and […]