Introduction

Every company in china is dealing with the same issue when it comes to employment of their staff. Rules and regulations for setting up a labor contract, social benefit, tax calculation and management, local employee vs. foreigners, even hiring issue when you are only a representative office without the right to hire anyone directly.

So how do you manage to be competent in all aspect when dealing with these issues? Can HR Outsourcing be the answer to all your issues?

Here is what you need to do for your employee when you start hiring:

1. Contract signing: make sure it meets the local wage standards and that salary is issued and processed fairly and timely;
2. File every employment and dismissal of staffs with the related government bureaus;
3. Maintain all academic and employment history of all staffs as their personnel file and manage the transfers when the employee changes jobs;
4. Withhold and pay individual income tax on behalf of the employees;
5. Pay monthly contributions of employee’s social benefit and housing funds.

Dealing with the heavy paperwork and government bureaus can be complicated and challenging. A professional service provider specialized in HR will be reliable to guide you through these administrations processes.

Employment Contract

Signing an employment contract is obligatory according to the People’s Republic of China’s labor law. Different from limited liability companies who are allowed to sign employment contracts directly with local PRC staffs, a representative office must seek for an authorized service provider to hire and dispatch their employees. Currently there are no standard contract for staff employment, however what should be mentioned in the agreement are:

1. Term of contract and Probation period
2. Job title and description
3. Labor protection and working conditions
4. Compensation
5. Termination conditions
6. Breach of contract provisions and disciplinary rules
7. Other provisions including Training Bond, Non-disclosure agreement and Non-compete agreement.