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Author: Bella
Editor: Sharie
If you have any question, don't hesitate to “Ask me”
Ms. Bella is a Chinese National based in Beijing with over ten years experience in human resources and consulting with several Chinese enterprises. She is currently the Project Director at Shanghai Global Expertise and Talent Co. Ltd. (SGET) where she assists in the recruitment and training of mainly global talents for Chinese companies. Under SGET’s flagship program called Global Career in China, Bella helps deliver human resource service for Chinese enterprises going global. She is very familiar with Chinese Education systems and University programs for international students, Job Market trends and information in China as well as global career opportunities from Chinese enterprises.
According to labor acts:
| Article 12：“Employment contracts are divided into fixed-term employment contracts, open-ended employment contracts and employment contracts that will expire upon the completion of a certain job or duty.” |
| Article 13：A “fixed-term employment contract” is an employment contract which ending date is agreed upon by the employer and employee. An employer and an employee may conclude a fixed-term employment contract upon reaching a negotiated consensus. |
Article 14：An “open-ended employment contract” is an employment contract for which the employer and the employee have agreed not to stipulate a definite ending date. An employer and a employee may conclude an open-ended employment contract upon reaching a negotiated consensus. If an employee proposes or agrees to renew his employment contract or to conclude an employment contract in any of the following circumstances, an open-ended employment contract shall be concluded, unless the employee requests the conclusion of a fixed-term employment contract: (1) The employee has been working for the employer for a consecutive period of not less than 10 years; (2) When his employer introduces the employment contract system or the state owned enterprise that employs him re-concludes its employment contracts as a result of restructuring, the employee has been working for the employer for a consecutive period of not less than 10 years and is less than 10 years away from his legal retirement age; or (3) Prior to the renewal, a fixed-term employment contract was concluded on two consecutive occasions and the employee is not characterized by any of the circumstances set forth in Article 39 and items (1) and (2) of Article 40 here of. If an employer fails to conclude a written employment contract with an employee within one year from the date on which it starts using the employee, the employer and the employee shall be deemed to have concluded an open-ended employment contract |
Article 15：An “employment contract with a term to expire upon completion of a certain job” is an employment contract in which the employer and the employee have agreed that the completion of a certain job or duty is the term of the contract. An employer and an employee may, upon reaching a negotiated consensus, conclude an employment contract with a term to expire upon completion of a certain job. |
In practice, most companies prefer to sign 3 years labor contract with 3 or 6 months probation period.
Some individuals are afraid that they can’t complete a 3 year labor contract. Bella suggests staying in a stable company, instead of continuous changing of employers as this will influence an individuals career background. However, if one truly cannot complete their contact or is unable to accept a longer contract, the the individual should submit a written application at least 1 month earlier and submit a well explained job handover (A handover is a document written by an employee who is leaving their role (either permanently, or temporarily). It's designed to help whoever is taking on their day-to-day tasks get-to-grips with them, and understand their duties). An individual will not have financial repercussions for being unable to complete their labor contract.
Some individuals may think this is an opportunity to negotiate a new salary or benefits when the time of renewal of their labor contract arises. However Chinese companies usually adjust salaries based on company’s and individual’s performance or when an individual has been promoted, which is not related to contract renewal time, the salary adjustment and labor contract signing are separate systems.
Above are questions for your reference, they aren’t mandatory, the answers are suggestions to help guide you, please show a positive attitude.
If you’ve received or simply have any other questions during or for the interview process don’t hesitate to leave a comment here.
Email: hr@sgetgroup.com
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