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2019

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20 iron rules that enterprises must know about employment!

From establishment to development, and then to maturity, enterprises cannot do without legal constraints, such as employment, taxation, operations, etc., which are all within the framework of the law. At the same time, the progress of the legal system has also led to the continuous enhancement of labor's legal awareness and awareness of rights protection. This requires our enterprises to be familiar with the following 20 employment iron laws while hiring.


From establishment to development, and then to maturity, enterprises cannot do without legal constraints, such as employment, taxation, operations, etc., which are all within the framework of the law. At the same time, the progress of the legal system has also led to the continuous enhancement of labor's legal awareness and awareness of rights protection. This requires our enterprises to be familiar with the following 20 employment iron laws while hiring.

1. The employer shall sign a labor contract with the employee within one month from the date of employment. If the employer has not signed a labor contract with the employee for more than one month but less than one year, they shall pay double the monthly salary to the employee; If a worker has not signed a labor contract for more than one year, it shall be considered as an open-ended labor contract.

2. The rules and regulations established by the employer must go through democratic and public procedures, and should obtain written approval from employees.

3. Employers are not allowed to sign a probationary labor contract with workers separately, otherwise it will be considered as signing a fixed term labor contract.

4. Employers should sign an open-ended labor contract with the employee in the following situations, except when the employee proposes to sign a fixed-term labor contract: 1. The employee has worked continuously with the employer for at least ten years; 2. When an employer implements the labor contract system for the first time or when a state-owned enterprise restructures and signs a new labor contract, the employee has worked continuously for the employer for at least ten years and is less than ten years from the statutory retirement age; 3. Since 2008, two consecutive fixed-term labor contracts have been signed, and a third labor contract has been signed.

5. If the term of the labor contract is more than three months but less than one year, the probationary period shall not exceed one month; If the term of the labor contract is one year or more but less than three years, the probationary period shall not exceed two months; For labor contracts with a fixed term of three years or more and without a fixed term, the probationary period shall not exceed six months.

6. The salary of an employee during the probationary period shall not be lower than the minimum wage for the same position in the employer or 80% of the wage stipulated in the labor contract, and shall not be lower than the minimum wage standard in the place where the employer is located.

7. The personnel subject to non competition restrictions are limited to senior management personnel, senior technical personnel, and other personnel with confidentiality obligations of the employer. The scope, region, and duration of non competition shall be agreed upon between the employer and the worker, and the agreement on non competition shall not violate the provisions of laws and regulations.

8. After the termination or termination of the labor contract, if the employee has fulfilled the non compete agreement, the employer may be required to pay economic compensation for non compete. The employer's defense that the labor remuneration paid to the employee during the existence of the labor relationship already includes non compete economic compensation is invalid.

9. The employer shall purchase five insurances and one fund for the employee within one month from the date of employment. Otherwise, the employee may terminate the labor contract and demand corresponding economic compensation based on the employer's failure to purchase the five insurances.

10. The change of the employer's name, legal representative, main responsible person, or investor shall not affect the performance of the labor contract.

11. When the expiration date of a labor contract encounters an employee's third or work-related injury period, the term shall be extended until the relevant situation disappears.

12. Employees during the probationary period only need to submit their resignation three days in advance, while employees during the formal labor contract period only need to submit their resignation thirty days in advance.

13. The employer shall provide a certificate of termination or termination of the labor contract upon termination or termination, and handle the transfer procedures for the employee's archives and social insurance relationship within 15 days.

14. For holiday overtime, employers can arrange for employees to take compensatory leave without paying overtime pay. However, for national statutory holidays and weekdays overtime, compensatory leave cannot be arranged, only overtime pay can be paid.

15. The labor dispatch unit shall sign a fixed term labor contract with the dispatched worker for at least two years and pay monthly labor remuneration; During the period when dispatched workers are not working, the labor dispatch unit shall pay them monthly remuneration in accordance with the minimum wage standards set by the local people's government.

16. If an employee has worked for less than one year, their annual leave can be converted based on their working hours; Employees who have worked for a total of one year but less than ten years will be entitled to 5 days of annual leave; Employees who have worked for a total of ten years but less than twenty years will be entitled to 10 days of annual leave; Employees who have worked for a total of 20 years will receive an annual leave of 15 days.

17. When an employee of an employer needs to stop working for medical treatment due to illness or non work-related injuries, a medical period of 3 to 24 months will be given based on the employee's actual years of service and years of service in the employer. (1) For employees with actual working years of less than ten years and working years of less than five years in the employer, a medical period of 3 months will be given; Six months for those over five years. (2) For those who have worked for more than ten years and have worked for the company for less than five years, it is 6 months, and for those who have worked for more than five years and less than ten years, it is 9 months; 12 months from ten to fifteen years; 18 months for those who have been for more than 15 years but less than 20 years; Twenty years or more is 24 months.

18. If the labor contract expires, but the employer signs a service period agreement with the employee and the agreed service period has not yet expired, the labor contract shall be extended until the service period expires.

19. The "monthly salary of economic compensation" in the Labor Contract Law of the People's Republic of China is calculated based on the employee's wages, including hourly or piece rate wages, as well as monetary income such as bonuses, allowances, and subsidies. If the average salary of an employee in the 12 months prior to the termination or termination of the labor contract is lower than the local minimum wage standard, it shall be calculated according to the local minimum wage standard. If a worker has worked for less than 12 months, the average salary shall be calculated based on the actual number of months worked.

20. Foreigners and stateless persons who sign labor contracts with employers within China without obtaining employment documents in accordance with the law shall not be subject to the provisions of the Labor Contract Law of the People's Republic of China and shall be handled in accordance with labor relations.