Clauses you should double-check before signing a job contract in China

Following a series of staff termination scandals and legal disputes, a new Labor Contract Law, which covers all workers in China, was introduced on January 1st 2008. This near 100-article-long law is looking to improve working conditions for employees in many neglected areas such as social security, probationary periods, overtime, severance pay and lay-offs.  Although employers now have a stricter “watch-dog”, employees should in any case carefully read and understand all clauses before signing a new job contract.  Here are the main elements to double-check.

General information

• Identification of both parties
• Location of employment

Length of employment

• Clear statement of the duration of the contract
• Length of the probation period, if any (not more than a month for a one year contract)
• Number of hours to be worked (generally 40 hours / week)

Salary and payment details

• Dates of payment
• Currency paid
• Taxes that will be deducted from the pay
• Terms of overtime work
• Holiday policies (generally 16 to 23 paid holidays)

Extras, benefits and expenses which can potentially be paid

• Moving  and installation expenses
• Housing expenses
• Work related expenses such as a rental or company car, travel expenses and mobile phone costs
• Travel expenses for vacation back to home country or for family emergencies (death, illness, etc.)
• School fees for kids

Termination of employment

• Terms for leaving employment
• Procedure in the case of a dismissal
• Maternity leave (generally 90 days)