China Employment Contract Checklist for Employers
A practical checklist for employers hiring staff in China, covering written contracts, term, probation, compensation, job duties, confidentiality, policies and termination risk.
This guide is written from the employer/company perspective and is intended for businesses operating or employing personnel in China.
A useful China employment contract should match the way the business actually hires, pays and manages staff. For foreign-invested companies and multinational groups, importing a global template without checking the local employing entity, mandatory terms and supporting HR procedures can leave avoidable gaps. This checklist addresses ordinary full-time employment in Mainland China; dispatch, part-time work and expatriate arrangements require separate assessment.
Identify the correct employing entity
Use the registered name of the entity that will employ and manage the individual, rather than a group brand. Reconcile the contract with payroll, social insurance, reporting lines and any secondment arrangements. Article 3 of the Supreme People’s Court’s 2025 Labour Disputes Interpretation II addresses alternating or simultaneous employment by related entities. A written contract is important to identification; without one, actual management, working arrangements, pay and social insurance become significant. Related entities can face joint responsibility for remuneration and benefits in the circumstances specified by that provision. An internal cost-allocation agreement alone is not a complete answer.
Use a written contract promptly
For ordinary full-time employment, Article 10 of the Labor Contract Law requires a written contract within one month after work starts. Sign before or at onboarding where practicable and provide the employee with a copy. Missing documentation can trigger statutory double-wage liability; a year without a written contract also engages the deemed open-ended-contract rule. Interpretation II recognises specific exceptions to double-wage liability, including employee intent or gross negligence that the employer proves. Keep evidence of signing requests, but do not treat an unsigned template or routine reminder as sufficient proof of an exception.
Make the job description usable
Record duties, reporting arrangements, work location, working-time system and measurable expectations. Article 17 also requires terms on remuneration, social insurance, working conditions and occupational-hazard protection. A broad mobility clause should not be treated as unrestricted permission to change work or pay. Define who can approve changes and record material agreed variations in writing.
Coordinate probation terms carefully
Under Article 19, a contract of at least three months but less than one year permits up to one month’s probation; at least one year but less than three permits up to two months; a fixed term of three years or more, or an open-ended contract, permits up to six months. Contracts shorter than three months and task-completion contracts cannot contain probation. The same employer and employee may agree probation only once. Probation is part of the employment term, not a separate unpaid trial. Check statutory pay floors and document recruitment conditions before assessing whether the employee meets them. Probation does not create an at-will dismissal right.
Align salary terms with payroll practice
Distinguish base pay, allowances, commission and conditional bonuses, including calculation periods and approval criteria. Check local minimum wage, overtime, leave and social-insurance requirements. Avoid promises that cannot be reconciled with payroll records. A supposed employee waiver of mandatory social insurance is not a substitute for compliance; Interpretation II expressly treats such arrangements as invalid.
Link the contract to valid company policies
Identify the applicable handbook and version. Keep its adoption and communication records separately: an acknowledgement clause in the contract does not replace the statutory process for rules directly affecting employees’ interests. Align disciplinary provisions with the actual investigation and approval workflow.
Address confidentiality and intellectual property
Define protected information, permitted use, access controls and return of materials. Match invention, software and work-product clauses to the role and applicable intellectual-property rules. Avoid relying on a generic statement that every item created during employment belongs to the company regardless of its nature or circumstances.
Do not overuse non-compete clauses
Assess eligibility and actual access to protected information before proposing a post-employment restriction. Scope, duration and compensation need separate consideration. A confidentiality obligation and a prohibition on working for a competitor serve different purposes; imposing both on every employee can undermine enforceability rather than strengthen protection.
Plan for termination before a dispute exists
Specify practical handover and notice-delivery arrangements without inventing contractual dismissal grounds that bypass mandatory law. Calendar expiry and renewal decisions, including possible open-ended-contract rights. Preserve performance, training, policy and payroll records from the start rather than reconstructing them when a separation is proposed.
Employer takeaway
Before issuing an offer, HR and legal should reconcile four documents: the contract, job description, compensation schedule and applicable handbook. Assign responsibility for signatures, employee copies and renewal reminders. The objective is a consistent, usable employment file.
Legal sources
Legal review: 6 October 2026. This article provides general information only and does not constitute legal advice for any particular employment matter.
Employer-side legal support
If your company is hiring employees in China or reviewing existing employment documentation, we can assist with employment contracts, workplace policies and employer-side compliance planning.