In Chinese employment law, company policy is a set of rules and processes adopted by an employee that establish how work and management will be done, which applies to all employees. Chinese law expects that every employer will have a policy, and in practice these are usually contained in its employee handbook.

Changes to company policy that could affect employees’ rights must be discussed with the labor union or a meeting of all the employees to give them an opportunity to comment on and negotiate on the provisions. An employee who violates company policy may be terminated without compensation.

Terminology
Chinese labor law textbooks and encyclopedias make note that Mandarin Chinese has approximately six different terms for ‘company policy’ that occur outside China that all have an identical meaning, but are simply the result of word-for-word translations. Thus, many lawyers in China may confusingly say a company must have its own “rules and regulations” when what they mean is the company’s policy, typically the employee handbook.

Learn about how to legally enforce company policy  here.