What types of labor contracts are used in China?
In China, labor contracts are categorized into three types:
Fixed-term contracts
These contracts specify a clear start and end date for employment and are established through mutual agreement between the employer and the employee.
Open-ended contracts
These have no fixed end date and are also based on mutual agreement between the employer and the employee.
However, the employer must offer an open-ended contract if:
> The employee has worked for the employer for ten consecutive years;
> The employee is in their tenth consecutive year with the employer and is within ten years of the legal retirement age, when the employer first signs a contract or undergoes state-owned enterprise restructuring
> The employer and employee are signing a contract for the third consecutive time, and the employee has not violated provisions under the Labor Contract Law of the People's Republic of China
If the employer fails to sign a written contract within one year from the employee's first working day, it is automatically deemed an open-ended contract.
Task-based contracts
These end upon completion of a specific task or project, as agreed by both parties.