Page 51 - Doing Business in China

MANPOWER

TERMINATION

In practice, termination of employees in China can be more difficult than expected, considering the comparatively
stringent regulations on terminating employment contracts in effect since 2008� Employers should follow the
steps below to ensure compliance with all relevant statutes:

Determine whether the termination is an early termination or not� If the employer chooses to
Step 1 terminate the employee prior to expiration of the first fixed-term contract, this is considered ‘early
termination’ and certain additional requirements apply�
In the case of early termination, the employer should attempt to negotiate an agreement with the
Step 2 employee, including the termination date, severance payment and any other necessary details� This
is often the safer option even if there are grounds for unilateral termination�
If the employer and employee are unable to come to a termination agreement, consider whether
Step 3 there are grounds to support immediate termination for cause or a 30-day notice period for
termination without cause, keeping in mind the statutory obstacles to such forms of termination�

WORKING HOURS IN CHINA
There are three types of working hours in China:

▪ Standard working hours
The employees shall work for no more than eight hours a day and no more than 40 hours a week on average�
If they work beyond these standard durations, the overtime (OT) rates below shall apply:

OT on working days 150% of regular salary / OT hour

OT on weekends 200% of regular salary / OT hour
OT on public holidays 300% of regular salary / OT hour

▪ Flexible working hours
▪ Integrated working hours

Arrangements for both flexible working hours and integrated working hours require approval from the government�
These two types of working hours allow the company to arrange non-standard working hours according to
business needs with less OT payment costs�

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