The general rules that employers need to follow for recruitment and for wages/working in China are provided below.
Rules Relating to Recruitment
- Employers are prohibited from publishing false advertising for recruitment. Any contravention can result in the labour administrative authority ordering fines of up to Rmb1,000.
Rules Relating to Background Checks
- Companies can conduct background checks to verify a candidate’s details including personal information, education, reputation and work experiences. Such verification can be done by the employer themselves, through an external agency or by asking the employees to provide the information
- Other rules for background checks are:
- Employers can ask for a copy of a candidate’s criminal record for positions where, under the law, no criminal history is a prerequisite.
- It is an accepted practice to ask an employee to provide a recent medical report.
- Although seldom required, employees can be asked to undergo drug screening.
- Employers can gather publically available details regarding “dishonest people” but other credit information needs to come from the employee
- Candidates can be asked to submit a copy of their residency permit, identity card or passport, among other documents.
- Employers can look for information on employees on social media sites like WeChat
- Employees can be asked to provide references or recommendations from previous employers.
Rules Related to Wages and Working Hours
A minimum monthly wage for full-time employees as well as a minimum hourly wage for part-time employees has been laid down.
Local governments are allowed to adjust the minimum wage standards annually, after considering other factors like the cost of living, average wage levels along with the level of economic development in the area.
The Regulation on Employee Working Hours, states that working hours cannot be over eight hours a day or 40 hours a week.
Rules Related To Meal And Rest Breaks
There are no special rules for meal and rest breaks. It is left to an employer’s discretion, although the employers are expected to be reasonable.
Rules Related to Overtime
Under the Labour Law employers can increase working hours after negotiating with trade unions or employees. Overtime is typically limited to one hour a day, however under special circumstances, it can be up to three hours a day, but cannot exceed 36 hours a month.
Exemption for overtime include :
- natural disasters, incidents or other such events that affect employees’ lives, health or property and need emergency management
- Any malfunctioning of production facilities, transport or public facilities
- Any circumstances as per law and administrative rules and regulations
Rules Related To Holidays
The paid holiday entitlement is laid down under the Regulations on Paid Annual Leave of Employees:
- five days’ annual leave for those who have worked between one and 10 years
- 10 days’ annual leave for those who have between 10 and 20 years
- 15 days’ annual leave for those who have worked over 20 years
Rules Related To Wage Deductions
The laws allow employers to withhold or deduct personal income tax, housing funds and social security contributions prior to releasing an employee’s salary.
Rules related to Record keeping
Employers must maintain written records regarding wages paid, the amount of payment as well as the recipient’s name and signature. These records need to be preserved for two years. Employers must additionally provide employees a full record of their earnings to date.