Background Checks

Employers should obtain the job applicant’s consent before conducting background checks. Employers have the right to know basic information that directly relates to the employment contract, and employees are obligated to provide this information truthfully. However, background checks must not infringe on the privacy rights or equal employment rights of employees.

Common Types of Background Checks

• Education Check: Verification of academic achievements, degrees, diplomas, and certifications from relevant institutions
• Reference Check: Confirmation of job titles, dates of employment, and reasons for leaving from past colleagues or supervisors
• Criminal Background Check: Determination of any history of criminal convictions. Employers may require candidates to obtain a Certificate of No Criminal Conviction (CNCC) from the local public security bureau

Verification and New Hire Reporting

Employers must verify the authenticity of the documents collected and report new hires to the relevant authorities:

• Register the business with local authorities, requiring specific documentation such as business licenses and tax IDs
• Register new employees with the local social insurance bureau within 30 days of hiring

Onboarding Process & Documentation

Collecting Required Documentation Employers must collect several essential documents during the onboarding process, including:

• Valid Passport: For foreign employees.
• Visa: Appropriate visa type (e.g., Z visa for work).
• Work Permit Notice: Issued by the relevant authorities.
• Medical Examination Certificate: Required for work permit applications.
• Employment Contract: Clearly outlining job terms and conditions.
• Proof of Qualifications: Degrees and certifications.
• Criminal Record Check: To ensure the employee’s background is clear

Providing Employee Rights and Obligations Employee Handbook that outlines company policies, disciplinary procedures, and workplace rules. Should be acknowledged by the employee (e.g., via signature). Social Insurance and Housing Fund Information that gives the employee an explanation of contributions and benefits. Confirmation of registration with local authorities. Onboarding Acknowledgment Forms on the following:

• Labor contract
• Employee handbook
• Safety training
• Company policies

Healthcare

Employers and employees must contribute to basic medical insurance premiums. The basic medical insurance fund covers costs for prescription drugs, medical treatments, services, and emergency healthcare at approved medical institutions, as long as these costs comply with basic medical insurance policies.

Retirement

Both employers and employees must contribute to basic pension insurance premiums. Employees who have contributed for 15 cumulative years and reached the statutory retirement age can collect a monthly pension. Starting January 2025, the minimum contribution period will gradually increase from 15 to 20 years by 2030. The pension amount is determined by factors such as cumulative contribution period, wage, local average monthly wage, pension account total, and urban population life expectancy.

Social Security

Employers and employees must contribute to several social insurance programs as part of lawful employment practices.

• Mandatory Contributions: Include pension, medical, unemployment, maternity, and work injury insurance.
• Contribution Ratios: Specific percentages for contributions vary based on local regulations and can change annually.
• Compliance Monitoring: Regularly review local bureau updates to stay compliant with current rates and regulations.

Employment Contract Details

Contracts must be clear, compliant, and beneficial for both parties. Here’s what to include:

• Written Contracts: Employment contracts must be solidified with a written contract within 3 days to one month of the start date. Verbal agreements are not legally recognized and should be avoided.
• Contract Length: Determine the type of contract: fixed term, open-ended, or based on the completion of a specific task.
• Mandatory Inclusions: Ensure the contract includes job description, work hours, salary, work location, probation period, social insurance, and both parties’ responsibilities.

Probation Period

The length of the probation period depends on the contract’s duration. It cannot exceed six months.

Visas

Types of Visas

• Tourist Visa (L Visa)
  • Purpose: Sightseeing or visiting family.
  • Duration: Generally 30 to 60 days per entry.
  • Required Documents: Passport, visa application form, photo, proof of round-trip travel booking and accommodation, invitation letter (if visiting family or friends).
• Business Visa (M Visa)
  • Purpose: Business activities.
  • Duration: Generally 30 to 90 days.
  • Required Documents: Passport, visa application form, photo, invitation letter from a Chinese business entity, business license of the inviting company.
• Work Visa (Z Visa)
  • Purpose: Employment in China.
  • Steps to Obtain: Job offer, official invitation from a Chinese employer, work permit notification or foreign expert’s certificate, visa application form, photo, educational qualifications, health certificate.
• Long-term Residency: Z Visa holders often convert to residence permits after entry, allowing multiple re-entries during the work period.
• Student Visa (X Visa)
  • Purpose: Studying in China.
  • Categories: X1 for programs longer than 180 days, X2 for shorter programs.
• Visitor Visa (F Visa)
  • Purpose: Non-commercial activities like research or attending lectures.
• Transit Visa (G Visa)
  • Purpose: Transiting through China.

Application Procedure

Preparing the Application

• Gather all required documents specific to the visa type.
• Complete the visa application form from the official Chinese Consulate website.
• Ensure all information is accurate and consistent with supporting documents.

Submission Process

• Submit the application in person or via an authorized agency; mail applications are not accepted.
• Visit the Chinese Embassy or Consulate General in your country of residence.
• Bring all original documents for verification.

Visa Issuance

• Processing time ranges from four to ten business days.
• The embassy may require additional documentation; provide these promptly to avoid delays.
• Check the visa stamp for correct details upon receipt.

Independent Contractors

While hiring independent contractors is not prohibited, the legal system favors traditional employment relationships. Companies must navigate complex bureaucratic procedures and documentation requirements.

• Independent contractors work under business contracts that outline the scope of work and deliverables. These contracts must clearly define intellectual property rights and tax obligations.
• Independent contractors are responsible for their own taxes, and companies must ensure compliance with tax regulations when paying contractors.

Paid Time Off

Employees are entitled to paid annual leave based on their total years of service across all employers:

• Less than 1 year: Calculated on a prorated basis
• 1-10 years: 5 days
• 10-20 years: 10 days
• More than 20 years: 15 days

Vacation days accrue on a monthly basis and do not include rest days, public holidays, or other types of approved absences.

Public Holidays

There are 11 public holidays, however, some regions have additional holidays.

•  New Year’s Eve
• Lunar New Year
• Spring Festival (multiple days)
• International Women’s Day (not mandatory)
• Qing Ming Jie Holidays
• International Labor Day and extended holidays
• Dragon Boat Festival
• Mid-Autumn Festival
• National Day

Bereavement

Employees are entitled to up to 3 days, depending on the employment contract and region.

Maternity Leave

Employees are entitled to 98 days of leave; 15 days can be taken prior to the expected due date. Each province also has additional maternity leave as follows:

• Chongqing, Guangdong: 178 days
• Tianjin: 128 days
• Henan, Hainan: 190 days
• Jiangxi, Hebei (for the third child), Zhejiang (for the third child): 188 days
• Gansu, Heilongjiang, Fujian: 180 days
• Guangxi: 148 days
• Jiangsu: 128 days
• Other regions (including Beijing):158 days

Additional leave entitlement is also in place as follows:

• The prenatal examination includes doctor visits during the first 12 weeks.
• Difficult delivery: leave days of natural delivery + 15 days
• Multiple deliveries: leave days of natural delivery + 15 days + 15 days extra per baby
• Prenatal leave: After 7th month of pregnancy can avail 1-hour daybreak. May also avail 2.5 months prenatal leave upon employer approval.
• Breastfeeding leave: For a child less than a year old, female employees may have up to two feeding periods per day (30 minutes per baby). Travel time for the same period shall be counted as working time. Alternatively, after childbirth, female employees may also apply for leave of 6.5 months upon employer approval. With maternity insurance (a part of Social Security Insurance), the employee is compensated with an allowance rather than her normal salary during maternity leave.
• Abortion or Miscarriage within first 4 months: 15 days
• Abortion or Miscarriage after first 4 months: 42 days

Paternity Leave

Employees are entitled to 15 days, but can vary by location as follows:

• Tianjin, Shandong: 7 days
• Shanghai: 10 days
• Liaoning, Chongqing, Sichuan, Hunan: 20 days
• Ningxia, Guangxi, Inner Mongolia: 25 days
• He’nan, Jiangxi, Anhui, Yunnan, Gansu: 30 days

Parental Leave

Employees are entitled to paid childcare leave; the length is determined by each province as follows:

• Beijing & Shanghai: 5 days’ childcare leave each year until their child reaches three years old.
• Fujian, Guangxi, Inner Mongolia, Heilongjiang, Liaoning, Hebei, Jiangxi, Jiangsu, Sichuan, Guizhou, Zhejiang, Tianjin, Ningxia, Henan, Hubei, Hunan, Hainan, Xinjiang, Shandong, and Guangdong: 10 days leave each year for couples with children under the age of three years old.
• Anhui: 10 days leave per parent each year until their child is six years old.
• Yunnan: 10 days leave per year can be taken by either parent who has children under the age of three years old. An additional 5 days of leave can be taken per year by parents who have more than two children under the age of three years old.
• Shanxi, Qinghai & Gansu: 15 days leave each year to couples with children under the age of three years old.
• Chongqing: Two options on how to use this leave (1) After the Maternity/Paternity leave expires either parent can take childcare leave until the child reaches one year old; or (2) both parents can take 5 to 10 days of leave each year until the child reaches six years old.

Sick Leave

Employees in China are entitled to sick leave if they are ill or injured (unrelated to their job). The duration of sick leave depends on the employee’s length of service and can range from 3 to 24 months. During sick leave, employees receive a percentage of their daily wages, typically between 60% and 100%, depending on their length of service and local regulations. Employers cannot terminate an employee during their statutory sick leave period.

Termination Requirements

Termination of workers during pregnancy and within 1 year from Childbirth is not permitted.

Notice Period

Regardless of the years of employment it’s generally set to 30 days and if notice is not given, the employer is required to provide payment in lieu. Employees are required to also give 30-day notice before resigning.

Severance Pay

Severance pay is mandatory if applicable, and the amount is based on the length of service.

• less than 6 months of service, half a month’s pay
• more than 6 months the pay is 1 month pay per year of service

Unemployment Insurance

To qualify for unemployment benefits, an individual must:

• Have participated in unemployment insurance for at least one year.
• Be involuntarily unemployed (e.g., laid off or contract expired without renewal).
• Have registered as unemployed and be actively seeking work.
• Not have refused suitable job offers or training provided by the government.

Benefit Amount and Duration

• The monthly benefit is typically 80% of the local minimum wage, but this varies by province.
• Benefits are paid for a maximum of 24 months, depending on the length of insurance contributions.
• Some regions offer graduated payments, where the amount decreases over time.

Unemployed individuals may also receive:

• Vocational training subsidies
• Job placement assistance
• Entrepreneurship support (e.g., small business loans or grants)

Employer Contributions

• Employers are required to contribute to the Unemployment Insurance Fund, typically at a rate of 0.5% to 1% of the employee’s wage.
• Employees also contribute a smaller portion (usually 0.2% to 0.5%).

Digital Access and Reforms

• Many cities now allow online applications for unemployment benefits via local government portals or apps.
• Reforms are underway to streamline benefit access and integrate with social credit systems to monitor compliance

Anti-Discrimination Practices

Discriminations/Harassment Protections Anti-Discrimination: Ensure recruitment practices are free from discrimination based on gender, ethnicity, religion, etc.

• Employers are encouraged to employ a certain proportion of disabled employees. Otherwise, they may need to contribute to the Disabled Person Employment Security Fund.

Workplace Safety Standards

The Administration Norms address the standardization of employer notifications and warnings of occupational hazards. They focus on the prevention and control of occupational hazards and the protection of employee health. Employers are required to sign employment contracts, release announcements, and offer training to ensure employees understand the occupational hazards present in the workplace, the prevention measures, the health impacts, and the results of health checks. Additionally, employers must use graphic signs, warning lines, warning languages, written notices, and combined signs to remind employees of occupational hazards and the necessary protective measures.

Workers’ Compensation

Employers must contribute to work-related injury insurance premiums based on the combined wages of all staff and a fee rate set by the social security agency. Employees do not contribute to this insurance. Employees injured or contracting an occupational illness at work are entitled to work-related injury insurance benefits, including disability benefits if applicable.

Labor Law Sanctions

Labor Law: Enacted in 1995, this law covers various aspects of employment, including working hours, wages, and workplace safety. Employers who violate these provisions can face fines, mandatory corrective actions, and even criminal charges for severe breaches.

Labor Contract Law: Implemented in 2008, this law requires employers to provide written contracts to employees. Non-compliance can result in fines and compensation to affected employees.

Social Insurance Law: This law mandates employers to contribute to social insurance schemes for their employees, covering pensions, medical insurance, unemployment insurance, and more. Failure to comply can lead to fines and legal action.

Employment Promotion Law: This law aims to promote employment and protect workers from discrimination. Violations can result in fines and other penalties.

Work Safety Law: This law focuses on ensuring safe working conditions. Employers who fail to provide a safe workplace can face fines, suspension of operations, and criminal charges in cases of severe negligence.

Child Labor Laws: China has strict regulations against child labor. Violations can lead to significant fines and legal repercussions.