Overview

Foreign investors recruiting in China should be cautious about respecting Chinese Employment Contract Law (the ECL) and other detailed employment-related laws and regulations in China. Not only are Chinese employees becoming more aware of protecting their rights, but also when disputes arise, Chinese authorities or judges tend to find in favour of local Chinese employees.

The ECL, together with its implementation rules and the Chinese Labour Law of 1994 are the principal employment law statutes in China. They apply to all Chinese workers and foreign nationals who enter into an employment relationship with Companies or Organisations located in China. Foreign employers are probably not bound by the ECL or Chinese Labour law, although specific advice should be sought in this respect, as the application of the law is not entirely clear.