PRC Labor Contract Law

The Labor Contract Law became effective on 1 January 2008 and applies to all enterprises, individual owned economic organizations and private non-enterprise work units in China. Under the law, there must be written labor contracts to establish labor relationships. There are four types of labor contracts specified:

  • Contracts with fixed terms of service
  • Contracts with unfixed terms of service
  • Contracts where the terms of service equal to the period required to complete the tasks
  • Collective contract

The Labor Contract Law details compulsory limits on probation periods under different working circumstances and also outlines situations where the employers and employees may terminate contracts and the relevant compensations.