After you decide to grow your business in China, the next logical step is to begin hiring dedicated talent. However, the process involves more than just finding the right candidates. Companies need to understand every aspect of China’s employment law and compliance to avoid fines or other penalties.

Recruiting in China

Just like you would anywhere else, you should begin the recruitment process by identifying your requirements and figuring out what type of candidate you need for your international team.

Recruiting can be very competitive in China, depending on the industry. Local candidates often have plenty of employment opportunities to choose from. Many of the most skilled employees have jobs already, and they’re not actively looking at advertised job postings. As a result, some companies choose to work with headhunters to recruit top talent. Unfortunately, traditional headhunters can be an expensive option.

In major cities in China, people are used to looking for jobs online. Companies can use traditional job search websites as well as regional sites that feature job listings and hiring options. Some social media platforms are restricted in China, so you probably won’t have much success if you choose to take that route.

If you want to attract the best talent, you’ll need to have a good bonus system, a competitive salary, and attractive opportunities for career development.

Timing is also critical to hiring in China. Many China-based companies give annual bonuses to their employees in March or April. As a result, employees will be reluctant to leave their current positions earlier in the year before receiving their bonuses. April to May is generally a favorable time to hire employees, especially after annual bonuses are paid. Candidate movement often increases from March through May, although competition for strong talent can also rise.

Laws against discrimination in China

You’ll also need to be aware of the numerous laws in China that protect against discrimination and discriminatory practices. Companies must refrain from discriminating against candidates based on ethnicity, race, gender, or religious belief.

How to hire employees in China

China employment compliance begins when you start the hiring process. China’s labor laws lay out basic principles for hiring, including treating all employees fairly and equally regardless of race, ethnicity, religion, or gender. Employers are generally not allowed to hire anyone under the age of 16. Limited exceptions may apply in sectors such as arts, sports, or special training, subject to approval and protection rules.

Employers must sign employment agreements with their workers when they are hired. However, the employment agreement process depends on your business structure. Electronic labor contracts have been expressly recognized for labor-contract purposes since March 2020, if both parties agree.

China’s employment laws

To ensure compliance, keep in mind the maximum number of hours employees can work each day and week. The Labor Law of the People’s Republic of China states that employees cannot work more than 8 hours a day or an average of 44 hours a week. It generally supports a 5-day workweek in practice. The legal standard is framed through working-hour limits and at least one rest day per week. Employees typically work from 8 a.m. to 6 p.m. every day with a 2-hour lunch break between noon and 2 p.m.

Employees receive vacation days based on their years of general employment. Below is the guidance of statutory annual leave regulations for employees based on their years of service:

  • Employees with at least 1 year but less than 10 years of cumulative service are entitled to 5 days of statutory paid annual leave.
  • Employees with at least 10 years, but less than 20 years, of cumulative service are entitled to 10 days of paid annual leave.
  • Employees with 20 or more years of cumulative service are entitled to 15 days of paid annual leave.

Onboarding in China

The best way to onboard employees is to create a strong employment contract that includes the employee’s compensation, benefits, and termination regulations. China’s labor law generally requires employers to enter into a written employment contract with employees within one month of their start date. Compensation in China-local employment contracts should generally be stated and paid in Chinese yuan or renminbi (CNY/RMB).

Although not required, it is best practice to inform employees ahead of time applicable policies to their employment including code of conduct, health and safety regulations, disciplinary and grievance policies, dress code (if applicable), and more. Sending out an email before an employee’s first day can create an overall better experience and lay out expectations in advance.

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