China PEO Services

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Hire & Pay Employees in China

China PEO & Employer of Record Services

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Global PEO Services (GPS) helps companies hire employees in China without establishing a legal entity. All human resources, benefits, payroll, and tax needs for the employees are managed by our China PEO, while the new hires and headquarter teams focus on your business goals. Using China PEO services is the fastest and most efficient way to develop a workforce in China.

When hiring employees in China, establishing a subsidiary or branch office is not always the best route, as it’s often a lengthy and expensive process. Hiring via a Professional Employer Organization (PEO), or Employer of Record (EOR), is a faster and often more effective option – especially when starting up in a new country.

Global PEO Services hires the employees on your behalf, legally contracting them through our subsidiary in accordance with China labor laws. As a result, the burden of compliance is on us and the employees can begin work for your company in a matter of days. PEOs/EORs provide you with a streamlined option for hiring employees, testing markets, and responding to growing business needs in China. With Global PEO Services, you get control without taking on legal entity liabilities, contractor risks, or sacrificing on talent or speed to market.

China - Country Overview

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China has the second-largest economy globally and is a prominent economic and technological dominion in eastern Asia. Additionally, the country has the world’s most significant hydroelectric power potential and numerous mineral resources. However, China can be a complicated country for newcomers since it has several provinces, each with its own set of criteria.

Capital City

Beijing

Currency

Yuan Renminbi (¥)

Principal Language

Mandarin, Cantonese

Government

Communist party-led state

Employment Contracts in China

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Per the Labor Contract Law, a written contract is the most common type of contract in China. However, written agreements are not mandatory for part-time employees. 

The employer and employee must copy the agreement in Chinese and any relevant foreign language depending on the local dialect. 

China employment contracts typically include: 

  • Contract term 
  • Social security 
  • Protection against occupational hazards, labor protection, and working conditions 
  • Liability for contract breach
  • and more 

The different types of employment relationships are: 

  • Permanent Employment – Permanent employment relationship is also known as a contract without a fixed term as there is no indication of an end date in the agreement. Under these contracts, terminations can be complex. 
  • Fixed-Term Contracts – Under China’s Labor Law, fixed-term agreements are labor contracts in which both parties have agreed on the termination period.
  • Short-term Employment – Often, employers can use employment service agencies or labor dispatch agencies for temporary work that is less than six months. 

Probationary Period 

According to China’s Labor Contract Law, probationary periods vary from one to six months, subject to the length of the employment contract. 

Working Hours in China

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Employees are required to work 8 hours per day or 44 per week. Overtime in China cannot exceed 36 hours per month.

Holidays in China

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Employees in China are entitled to the following leaves: 

  • Annual leave in China – Per China’s labor law, employees are entitled to paid annual leave after working for a continuous period of one year. Annual leaves vary from 5 to 15 days, depending on the years of service. 
  • Sick leave in China – Employees in China are entitled to sick leave ranging from three months to two years, depending on their years of service. 
  • Maternity leave in China– Per China’s Special Rules on the Labor Protection of Female Employees, employees receive a minimum of 98 days of maternity leave are allowed. Many provincial governments, however, have raised this minimum threshold.
  • Paternity leave in China – Although China’s Labor Law does not provide statutory paternity leave on a national level, all municipal or provincial governments grant it. Paternity leave varies from 7 to 30 days, depending on the region. 

There are various other types of leave categories available to employees with specific situations. 

Public Holidays 

The following are the statutory national holidays in China: 

  • January 1 – New Year’s Day 
  • January 2 – New Year’s Holiday 
  • January 3 – New Year’s Holiday 
  • February 11 – Spring Festival Eve 
  • February 12 – Chinese New Year 
  • February 13 – Spring Festival Golden Week Holiday 
  • February 14 – Spring Festival Golden Week Holiday 
  • February 15 – Spring Festival Golden Week Holiday 
  • February 16 – Spring Festival Golden Week Holiday 
  • February 17 – Spring Festival Golden Week Holiday 
  • March 8 – International Women’s Day 
  • April 3 – Qing Ming Jie Holiday 
  • April 4 – Qing Ming Jie Holiday 
  • April 5 – Qing Ming Jie Holiday 
  • May 1 – Labor Day 
  • May 2 – Labor Day Holiday 
  • May 3 – Labor Day Holiday 
  • May 4 – Labor Day Holiday 
  • May 4 – Youth Day 
  • May 5 – Labor Day Holiday 
  • June 12 – Dragon Boat Festival Holiday 
  • June 13 – Dragon Boat Festival Holiday 
  • June 14 – Dragon Boat Festival Holiday 
  • September 19 – Mid-Autumn Festival Holiday 
  • September 20 – Mid-Autumn Festival Holiday 
  • September 21 – Mid-Autumn Festival Holiday 
  • October 1 – National Day 
  • October 2 – National Day Golden Week Holiday 
  • October 3 – National Day Golden Week Holiday 
  • October 4 – National Day Golden Week Holiday 
  • October 5 – National Day Golden Week Holiday 
  • October 6 – National Day Golden Week Holiday 
  • October 7 – National Day Golden Week Holiday 

Employee Termination in China

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Employees and employers may unilaterally terminate their employment contract by providing a written notice 30 days in advance. Employers may also offer one month’s salary in place of notice if both parties meet specific labor code standards. 

Global Mobility in China

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Visitors from most countries are obligated to have a visa to enter and stay in China. However, tourists from Japan, Brunei, and Singapore can enter the country without a visa for up to 15 days for traveling or personal visits. 

There are typically the following categories of visas in China: 

  • C – Crew 
  • D – Resident  
  • F – Non-business activities 
  • G – Transit  
  • J1 – Journalists whose intended duration of stay exceeds 180 days 
  • J2 – Journalists whose intended duration of stay is less than 180 days 
  • L – Tourist  
  • M – Business 
  • Q1 – Family Reunion where the intended duration of stay must exceed 180 days 
  • Q2 – Family Reunion where the intended duration of stay is less than 180 days 
  • R – Talent/ Skill 
  • S1 – Private Visit where the intended duration of stay must exceed 180 days 
  • S2 – Private Visit where the intended duration of stay is less than 180 days 
  • X1 – Students where the intended duration of stay must exceed 180 days 
  • X2 – Students where the intended duration of stay is less than 180 days 
  • Z – Work 

Before obtaining a work permit in China, foreign employees need an employment license (provided by their employer). Work permit applications are available at embassies and consulates and must meet specific criteria. 

Foreign employees in Beijing are required to obtain a non-criminal background check approved by Chinese authorities. 

Employee Benefits in China

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Employers must provide their employees with social insurance benefits. They must contribute 20% to social security, covering pensions, health insurance, maternity insurance, work-related injury insurance, and unemployment insurance. Generally, the employer contributions differ by province.  

Per China’s Social Insurance Law, all employees hold the right to basic old-age insurance, contributed to by both the employee and the employer.  

Some examples of social insurance programs in China are: 

  • Dependents’/Survivors Benefit – The survivors of the deceased are entitled to receive bereavement allowances. The basic old-age insurance fund covers the expenses and determines the amount following local regulations. 
  • Life and Disability Insurance/Benefit – Employers must enroll their employees in the work injury insurance system, a part of the country’s social insurance system. Only the employer contributes to work-related injuries. 

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