China Law Library

China Law Library
Employment
China Employment Act

China Employment Act

Employment Act of the People’s Republic of China

Chapter 1 General Provisions

Section 1 This Act is enacted under the Constitution to protect employee legal rights, regulate employment relationships, establish and maintain an employment system appropriate for a socialist market economy, and support socioeconomic growth.

Section 2 This Act covers businesses and sole proprietorships (hereafter “Employers”) within the People’s Republic of China and the workers with whom they have an employment relationship.

Government agencies, public institutions, non-governmental organizations, and the workers with whom they have an employment contract relationship shall also be governed by this Act.

Section 3 An employee shall have the right to equal employment opportunities, freedom to choose employment, compensation and benefits for work performed, time off and leave, safe and healthy work conditions, job training, social security and benefits, labor dispute resolution, and other employee rights provided by law.

An employee shall complete all assigned work, develop their job skills, and comply with occupational safety and health procedures, workplace disciplinary policies, and professional ethics.

Section 4 An employer shall establish workplace policies that comply with applicable law, protect employee rights, and ensure that employees perform their assigned job duties.

Section 5 The central government shall prescribe regulations or orders as necessary to facilitate employment, improve job training, develop labor standards, regulate wages and income, improve social security programs, govern employment relationships, and gradually improve employee living standards.

Section 6 The central government shall encourage employee participation in voluntary services, skills competitions, employee suggestion programs, research programs, and technology innovation initiatives. The central government shall recognize and reward model workers and outstanding employees.

Section 7 An employee is entitled to join or form a labor union pursuant to law.

A labor union shall act independently to represent and protect the rights of the employees it serves pursuant to law.

Section 8 An employee shall have the right to participate in workplace decisions and negotiations with the employer on matters affecting employee rights through meetings of all employees, meetings of employee representatives, or lawful methods.

Section 9 The cabinet-level labor regulator shall oversee employment nationwide.

Each county labor regulator and its parent agency shall oversee employment within its jurisdiction.

Chapter 2 Employment Opportunity

Section 10 The central government shall support socioeconomic growth to create favorable employment conditions and improve employment opportunities.

The central government shall encourage companies, public institutions, and non-governmental organizations to establish new industries or expand operations pursuant to law and administrative regulations to increase employment.

The central government shall support workers who start businesses or pursue self-employment.

Section 11 Each local government shall prescribe regulations or rules as necessary to form employment agencies and provide employment services.

Section 12 An employee shall not be discriminated against in employment on the basis of ethnicity, race, gender or religion.

Section 13 Women shall have the same employment rights as men. An employer shall not refuse to hire a woman or impose stricter hiring standards on the basis of gender, unless Chinese law prohibits women from holding the position.

Section 14 Employment of persons with disabilities, ethnic minorities, and discharged military personnel shall be governed by applicable law.

Section 15 An employer is prohibited from employing a minor under the age of 16.

An employer in the arts, entertainment, sports, or handicrafts industries that employs a minor under the age of 16 shall obtain authorization as required by national law and ensure the minor’s right to continued enrollment in compulsory education.

Chapter 3 Employment Contracts and Collective Bargaining Agreements

Section 16 An employment contract is an agreement between an employer and employee to establish an employment relationship and provide for the rights and obligations of both the employer and employee.

An employment contract must be executed when establishing an employment relationship.

Section 17 The execution and amendment of an employment contract shall be based on equal and voluntary negotiations between the employer and employee and shall comply with applicable laws and administrative regulations.

A lawfully executed employment contract shall be binding, and each party shall be obligated to perform its obligations under the contract.

Section 18 The following employment contracts are invalid:

(a) An employment contract that violates applicable laws and administrative regulations;

(b) An employment contract executed through fraud, duress, or coercion.

An invalid employment contract is void and unenforceable from its signing. The unaffected provisions in an employment contract held partially invalid shall remain valid and enforceable.

A court or labor employment arbitration tribunal shall determine whether an employment contract is invalid.

Section 19 An employment contract shall be executed in writing and shall include the:

(a) Employment contract term;

(b) Work description;

(d) Compensation and benefits;

(e) Code of conduct;

(f) Employment contract termination conditions; and

(g) Breach of contract liability.

The employer and employee may agree to additional terms in the employment contract beyond the mandatory provisions provided above.

Section 20 An employment contract may be fixed-term, indefinite, or project-based.

An employer shall convert a fixed-term employment contract to an indefinite-term employment contract if the employee has completed more than 10 consecutive years of service with the employer, both parties agree to renew the contract, and the employee requests the conversion.

Section 21 An employment contract may include a probationary period. A probationary period shall not exceed 6 months.

Section 22 An employer and employee may agree on non-disclosure provisions in the employment contract to protect the employer’s trade secrets.

Section 23 An employment contract shall terminate at expiration or upon the occurrence of a termination condition agreed to by the parties.

Section 24 An employment contract may be terminated upon the agreement of the parties to the contract.

Section 25 An employer may terminate an employment contract if the employee:

(a) Fails to meet position requirements during the probationary period;

(b) Materially violates the employer’s code of conduct or workplace policies;

(c) Is grossly negligent in performing job duties or engages in dishonest conduct for personal gain, causing substantial loss to the employer;

(d) Is prosecuted for a crime.

Section 26 An employer may terminate an employment contract by giving the employee 30 days’ written notice if:

(a) The employee is unable to perform either their original duties or alternative work assigned by the employer due to a non-work-related illness or injury after returning from medical leave;

(b) The employee cannot perform adequately at the position even after additional training or reassignment;

(c) A material change in the objective circumstances makes continued performance of the employment contract impracticable, and the parties cannot agree on an amendment to the contract after negotiation.

Section 27 An employer that plans to lay off employees due to court-ordered reorganization pending bankruptcy or major operational difficulties may only proceed after explaining the reasons for the layoff to the labor union or a meeting of all employees at least 30 days in advance, considering their opinions, and filing the layoff plan with the labor regulator.

During the 6 months following a layoff under this section, and an employer that hires for the same positions shall give the terminated employees hiring preference for their former positions.

Section 28 An employer that terminates an employment contract under §§ 24, 26, or 27 of this Act shall pay the affected employee severance as required by Chinese law.

Section 29 An employer shall not terminate an employment contract under §§ 26 and 27 of this Act if the employee:

(a) Has an occupational illness or has been determined partially or fully unable to work due to a work-related injury;

(b) Is on statutory medical leave for a illness or injury;

(d) Any other event specified in applicable laws or administrative regulations.

Section 30 A labor union is entitled to challenge any employment contract termination by an employer it believes is improper. A labor union is entitled to require an employer to correct any violation of law or the employment contract and shall assist any affected employee in related arbitration or litigation pursuant to law.

Section 31 An employee may terminate the employment contract by giving the employer 30 days’ prior written notice.

Section 32 An employee may terminate the employment contract immediately and without prior notice if:

(a) The termination occurs during the probationary period;

(b) The employer compels work through violence, threats, or unlawful restraint; or

(c) The employer fails to pay compensation and benefits or provide the working conditions specified in the employment contract.

Section 33 An employer and its employees may negotiate and enter into a collective bargaining agreement addressing matters including compensation and benefits, work hours, time off, leave, occupational safety and health, and social security. Draft collective bargaining agreements shall be submitted to a meeting of all employees or employee representatives for discussion and approval.

An employer may execute a collective bargaining agreement with the labor union representing its employees. If no union exists,employee representatives shall be elected to execute the agreement.

Section 34 An executed collective bargaining agreement shall be filed with the labor regulator. The agreement shall take effect 15 days after filing unless the labor regulator objects.

Section 35 A lawfully executed collective bargaining agreement shall bind the employer and all employees. Working conditions and compensation and benefits in an employment contract between an employer and an employee shall not be lower than the standards specified in the applicable collective bargaining agreement.

Chapter 4 Work Hours, Time off, and Leave

Section 36 The central government enforces a standard work hour plan, under which, average daily work hours shall not exceed 8 hours and average weekly work hours shall not exceed 44 hours.

Section 37 An employer shall set reasonable units of work and piece-rate terms for workers paid on a piece-rate basis pursuant to the work hour plan provided in § 36 of this Act

Section 38 An employer shall grant each employee at least 1 day off per week.

Section 39 An employer unable to follow §§ 36 and 39 of this Act due to the nature of its work may use an alternative work hour plan if approved by the labor regulator.

Section 40 An employer shall schedule an employee leave as required by law for:

(a) International New Year’s Day;

(b) Chinese New Year;

(d) National Day;

(e) Other holidays specified in applicable laws or administrative regulations.

Section 41 An employer may extend work hours as necessary for business, and shall generally limit extensions to no more than 1 hour per day with the consent of the labor union and affected employees. Extensions for special circumstances shall not exceed 3 hours per day and 36 hours per month, to protect employee health.

Section 42 Work hour extensions shall not be subject to § 41 of this Act for:

(a) Natural disasters, accidents or other emergencies that threaten employee property, health, or safety and require immediate action;

(b) Equipment, transportation, or public infrastructure failures that affect production or the public interest and require prompt repair;

Section 43 An employer shall not extend an employee’s work hours in violation of this Act.

Section 44 An employer shall pay an employee at rate above the employee’s regular rate according to the following standards:

(a) Not less than 150% of the regular rate for overtime;

(b) Not less than 200% of the regular rate for hours worked on a day off if the employer is unable to schedule compensatory time off; and

Section 45 The central government shall implement a paid annual leave policy.

An employee with at least 1 consecutive year of service shall be entitled to paid annual leave. The State Council shall issue the specific calculation methods.

Chapter 5 Wages

Section 46 Employee wages shall be paid based on productivity and equal pay for equal work.

Wage levels shall be gradually increased in line with economic growth. The central government shall implement macroeconomic policy covering all wages.

Section 47 An employer shall independently determine a lawful wage structure and pay scale based on nature of its business and financial performance.

Section 48 The central government shall implement a minimum wage policy. Provincial, autonomous region, and home rule city governments shall determine the local minimum wage rate and file it with the State Council.

An employer shall not pay any employee a rate lower than the local minimum wage rate.

Section 49 Minimum wage rates shall be determined or adjusted based on:

(a) The minimum cost of living for local workers and the average number of dependents;

(b) The local average wage rate;

(d) Employment conditions; and

(e) Differences in economic growth among jurisdictions.

Section 50 An employer shall pay each employee directly, in legal tender, and on a monthly basis. Unlawful deductions from employee wages or delaying payments without a valid reason is prohibited.

Section 51 An employer shall pay an employee wages as required by law on public holidays, during marriage or bereavement leave, or when the employee performs any lawful civic duty.

Chapter 6 Occupational Health and Safety

Section 52 An employer shall establish and improve occupational health and safety systems, strictly comply with national occupational health and safety procedures and standards, provide occupational health and safety education, prevent workplace accidents, and minimize occupational hazards.

Section 53 An employer shall ensure that safety equipment complies with national laws.

The employer shall design, build, and implement occupational health and safety facilities for any new construction, expansion, or technical upgrade project concurrently with the main project.

Section 54 An employer shall provide employees with a safe and healthy work environment and shall provide necessary personal protective equipment pursuant to law. An employee assigned to hazardous work shall be provided with regular health checkups.

Section 55 An employee shall complete the required safety training and obtain the necessary certification before being assigned to hazardous work.

Section 56 An employee shall follow safety procedures while working.

An employee is entitled to refuse any unlawful instruction or order from a supervisor to perform a dangerous work. An employee has the right to make complains, report, or file claims against an employer for any act that endangers the employee’s health or safety.

Section 57 The central government shall establish an occupational injury and illness statistical reporting policy. The county labor regulator, its parent agency, other appropriate agencies, and employers shall compile statistics, report, and address employee occupational illnesses, injuries, and deaths as required by law.

Chapter 7 Specific Protections for Women and Minor Workers

Section 58 The Chinese government shall issue specific worker protections for women and minor workers.

“Minor worker” means a worker who is at least 16 but under 18 years of age.

Section 59 An employer shall not assign a woman employee to underground mining, work classified as strength level 4, or any work that national law prohibits for women workers.

Section 60 An employer shall not assign a woman employee to cold water, cold stress, elevated work, or work classified as strength level 3 during menstruation pursuant to national law.

Section 61 An employer shall not assign a pregnant employee to work classified as strength level 3 or to any work that national law prohibits for pregnant workers. An employer shall not assign overtime or night shifts to a woman employee who is more than seven months pregnant.

Section 62 A woman worker shall be entitled to at least 90 days of maternity leave.

Section 63 An employer shall not assign overtime, night shifts, work classified as strength level 3, or any work that Chinese law prohibits for breastfeeding women to an employee who is breastfeeding an infant under one year of age.

Section 64 An employer shall not assign a minor employee to underground mining, work involving toxic substances or hazardous work, work classified as strength level 4, or any work that national law prohibits for minor workers.

Section 65 An employer shall provide regular health checkups for each minor employee.

Chapter 8 Job Training

Section 66 The Chinese government shall prescribe regulations and orders as necessary to develop job training programs, improve worker job skills, competencies, employability, and productivity.

Section 67 Each level of government shall include job training into socioeconomic development plans and shall encourage and support capable businesses, public institutions, non-governmental organizations, and individuals to participate in job training programs.

Section 68 An employer shall create job training programs, draw and use job training funds as provided by Chinese law, and plan and provide job training for employees based on the employer’s operational needs.

An employee assigned to a technical role must complete job training before starting work.

Section 69 The Chinese government shall determine occupational classifications, establish occupational standards for designated occupations, establish a professional certification system. Government designated assessment organizations shall be responsible for administering worker certification exams.

Chapter 9 Social Security and Welfare

Section 70 The Chinese government shall develop social security programs, establish a social security system, and create a social security fund. An employee shall receive assistance and benefits for old age, illnesses, work-related injury, unemployment, and maternity.

Section 71 Social Security benefit levels shall reflect prevailing socioeconomic growth and economic conditions.

Section 72 Funding sources for the social security fund shall be determined by program type, and the funds shall be pooled over time. Each employer and employee shall enroll in social security and pay social security contributions as required by law.

Section 73 An employee is lawfully entitled to social security benefits during:

(a) Retirement;

(b) Illness or injury;

(d) Unemployment; and

(e) Maternity.

Survivors of a deceased employee shall receive survivor benefits pursuant to law.

The requirements and standards under which an employee is entitled to social security benefits shall be governed by applicable law.

Social security contributions to which an employee is entitled shall be paid in full and on time.

Section 74 The social security administration agency shall collect, use, administer, invest, and protect the social security fund as required by law and shall preserve and increase its value.

The social security oversight agency shall oversee the collection, use, administration, and operation of the social security fund pursuant to law.

The creation and operation of the social security administration agency and the social security oversight agency shall be governed by applicable law.

No organization or individual may embezzle from the social security fund.

Section 75 The Chinese government shall encourage an employer to provide supplemental insurance to its employees as appropriate.

The Chinese government shall encourage an employee to purchase cash value life insurance.

Section 76 The central government shall develop social welfare initiatives and build public facilities to support employee rest, recuperation, and rehabilitation.

An employer shall actively improve employee benefits and welfare.

Chapter 10 Employment Disputes

Section 77 An employer and an employee may resolve an employment dispute through negotiation, mediation, arbitration, or litigation pursuant to law.

Mediation shall be considered during both arbitration and litigation proceedings.

Section 78 An employment dispute shall be resolved lawfully, fairly, and promptly, and the rights of the parties to a dispute shall be protected pursuant to law.

Section 79 Parties to a labor dispute shall seek mediation by the employer’s labor dispute mediation commission. Either party may request arbitration by the labor arbitration tribunal if mediation is unsuccessful. A party may also directly request arbitration by the labor arbitration tribunal. A party dissatisfied with the arbitral award may file suit in the appropriate court.

Section 80 An employer may establish a labor dispute mediation commission. The labor dispute mediation commission shall be made up of employee representatives, employer representatives, and labor union representatives. A labor union representative shall serve as chair of the labor dispute mediation commission.

The parties shall perform any mediated settlement agreement reached through mediation.

Section 81 The labor arbitration tribunal shall be made up of representatives from the labor regulator, labor union representatives from the same level of government as the regulator, and representatives from the employer. A labor regulator representative shall serve as chair of the labor arbitration tribunal.

Section 82 A party that requests arbitration shall submit a written request to the labor arbitration tribunal within 60 days after the occurrence of the dispute. The labor arbitration tribunal shall issue an arbitral award within 60 days after receiving the request for arbitration. The parties shall comply with any uncontested arbitral award.

Section 83 A party dissatisfied with an arbitral award may file suit in the appropriate court within 15 days after receiving the arbitral award. A party may petition the court to enforce an arbitral award when the other party fails to file suit or comply with the arbitral award within the statutory period.

Section 84 A local labor regulator may facilitate resolution of a dispute arising from the execution of a collective bargaining agreement that the parties are unable to resolve through negotiation.

A party may submit a dispute arising from the performance of a collective bargaining agreement to the labor arbitration tribunal for arbitration if negotiation fails. A party dissatisfied with an arbitral award may file suit in court within 15 days after receiving the arbitral award.

Chapter 11 Oversight and Inspection

Section 85 The county labor regulator and its parent agency shall oversee and inspect employer compliance with employment laws as required by law, and may order an employer to cease and correct any violation of such laws.

Section 86 A county labor regulator or parent agency oversight official may enter an employer’s workplace to ensure compliance with employment law, review necessary records, and inspect the workplace while performing official duties.

The county labor regulator or parent agency oversight official shall present their identification credentials upon arrival, enforce the law impartially, and comply with applicable law while performing official duties.

Section 87 A county labor regulator and its parent agency shall oversee employer compliance with employment laws within its jurisdiction.

Section 88 A labor union shall protect employee legal rights pursuant to law and oversee employer compliance with employment laws.

Any organization or individual may report violations and bring suit for any violation of employment laws.

Chapter 12 Legal Liability

Section 89 The labor regulator shall order an employer whose workplace policies violate applicable law to correct the violation and shall issue a warning. The employer shall pay restitution to affected employees for any losses resulting from the violation.

Section 90 The labor regulator shall order an employer that extends employee work hours in violation of this Act to correct the violation, shall issue a warning, and may impose a penalty.

Section 91 The labor regulator shall order an employer to pay wages, severance, and damages to affected employees if the employer:

(a) Makes unlawful deductions from employee wages or delay the payment of wages without a valid reason;

(b) Refuses to compensate employees for overtime;

(d) Fails to pay an employee the severance required under this Act upon termination of the employment contract.

Section 92 The labor regulator or appropriate agency shall order an employer to correct the violation and may impose a penalty when the employer’s occupational safety and health facilities or working conditions fail to comply with national law, or when the employer fails to provide necessary personal protective equipment and facilities. The labor regulator or appropriate agency may request that the county government or its parent agency order suspension and reorganization for major violations. The labor regulator or appropriate agency shall refer the responsible person for prosecution under China Criminal Law Act § 187 when failure to abate major hazards results in a major accident causing employee injury or loss.

Section 93 A responsible person who unlawfully assigns employees to dangerous work that creates major safety hazards or cause a major accident shall be prosecuted to the full extent of the law.

Section 94 The labor regulator shall order an employer who employs a minor under the age of 16 to correct the violation and shall impose a penalty. The business regulator shall revoke the employer’s business license for major violations.

Section 95 The labor regulator shall order an employer that violates the protections for women and minor employees under this Act to correct the violation and shall impose a penalty. The employer shall indemnify any affected women or minor employees for resulting losses.

Section 96 A law enforcement agency shall issue the responsible person a warning, shall impose a penalty, or shall impose criminal detention for up to 15 days if the employer commits any of the following acts. The responsible person shall be prosecuted to the full extent of the law if the conduct constitutes a crime:

(a) Compelling work through violence, threats, or unlawful restraint; or

(b) Humiliation,corporal punishment, beating, unlawful searches, or unlawful restraint of employees.

Section 97 An employer that causes an employment contract to be unenforceable shall pay restitution to affected employees for resulting losses.

Section 98 The labor regulator shall order an employer that unlawfully terminates an employment contract or intentionally delays its execution as required by this Act to correct the violation. The employer shall pay restitution to affected employees for any losses caused by the violation.

Section 99 An employer that hires an employee who has not lawfully terminated an existing employment contract with a former employer shall be jointly and severally liable with the employee for losses suffered by the former employer.

Section 100 The labor regulator shall order an employer that fails to pay required social security contributions without valid reason to pay the late contributions by a specified deadline. The labor regulator may impose late fees on any amounts unpaid after the deadline.

Section 101 The labor regulator or appropriate agency shall impose a penalty on an employer that retaliates against a complainant or that obstructs the regulator, the agency, or its staff from performing oversight or inspections. The responsible person shall be prosecuted to the full extent of law if the conduct constitutes a crime.

Section 102 An employee who terminates an employment contract in violation of this Act or breaches a non-disclosure obligation in the employment contract shall indemnify the employer against all losses caused pursuant to law.

Section 103 An employee of the labor regulator or other appropriate agency shall be subject to criminal prosecution for negligence, failure to perform a legal duty, or abuse of authority that constitutes a crime under applicable law. The employee shall be subject to administrative penalties if the conduct does not constitute a crime.

Section 104 A government official or an employee of a social security administrative agency who embezzles social security funds shall be prosecuted to the full extent of law if the conduct constitutes a crime.

Section 105 Penalties provided by other laws shall apply when an infringement of employee rights under this Act is also punishable under those laws.

Chapter 13 Miscellaneous

Section 106 Provincial, autonomous region, and home rule city governments shall issue administrative procedures for employment contracts under this Act based on local conditions and shall file those procedures with the State Council.

Section 107 This Act shall take effect on January 1, 1995.

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This act was translated to American English using the User Centered Translation approach from the following government publications:

“中华人民共和国劳动法”

http://www.npc.gov.cn/zgrdw/npc/xinwen/2019-01/07/content_2070261.htm