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EMPLOYMENT CONTRACT

You may have an chinese employment contract templateat your head office. However, you can expect many differences between it and a “should-be” employment contract in chineseas required by Chinese law. A well-structured employment contract can not only protect you and your employee’s interests, but also avoid any unnecessary penalties due to failure of compliance of prevailing Chinese labor laws and regulations.

Our experts who are versed in Chinese labor and tax laws can either draft an employment contract for you from scratch or review your employment contract template and update it to a customized version for your company and employee to sign.

  1. CAN STOCK OPTION PROVIDE GOOD INCENTIVE TO CHINESE EMPLOYEES?

Generally speaking, yes. You need to evaluate the effectiveness of such a scheme in motivating and retaining your people before implementing it. Chinese people attach importance of the feeling being valued and a sense of belongings. Therefore options, to the extent they inspire loyalty and commitment and provide employees with a sense of ownership, are unique and potentially powerful compensation tool.

  1. WHAT INCENTIVE MEASURES CAN I TAKE?

There are a number of incentive measures that you can use to motivate your people. These may be increasing salaries, paying bonus, providing better social welfares, providing training, granting stock options, promoting, etc. There is no incentive scheme that can be universally applied to all you people. You need to analyze the needs and wants of your people one by one and provide customized incentive scheme for each person.

Home > How to reduce the turnover rate of your trained employees?

The first way is to provide them more challenging work opportunity and therefore they shall enjoy the job richness and self-actualization by taking more responsibilities.

You can also sign a training contract with the employees. The contract should include a service period clause stipulating that employees must remain and serve the company for a certain period. China’s laws protect such a provision if you sign such an agreement in writing.

a) The most common training form in China can be in house training. The lecturers can be your company’s senior people or external professional trainers. In-house training can be English language, skill development in different sectors (technical, sales, marketing etc.)

b) External trainings are largely provided to senior staff. These training can be seminars on certain topic, special program such as EMBA, and professional training at one of your member firms located in another country, etc.

When you are interviewing Chinese candidates, it is important to understand Chinese people first. Chinese people are usually very modest, and do not like to show off, or over-impress others. So, you may not just judge from what he/she said, but also see his/her academic performance, job achievements, personality, analytical analysis capabilities, etc.



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