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China Employment & Labor Legal Articles

Browse our 2 legal articles about Employment & Labor in China written by expert lawyers.

Wrongful Termination in China:Severance Pay vs Reinstatement
Employment & Labor
China is not an at-will jurisdiction: almost every unilateral dismissal must fit a narrow statutory ground, follow strict procedures, and be well documented. If a termination is ruled illegal, courts can order reinstatement plus back pay or award double severance (2N); employers cannot rely on paying standard severance to "buy... Read more →
China Non-Compete Agreements: New Limits and Compensation
Employment & Labor
In China, enforceable non-compete agreements are mainly for senior management and key technical or confidential staff, not for ordinary or low-level workers. The Supreme People's Court Interpretation II introduces the "30% rule": if the contract is silent, the employer must pay at least 30% of the employee's average monthly salary... Read more →

About Employment & Labor Law in Chengdu, China

Employment and labor law in Chengdu is governed primarily by national legislation of the People’s Republic of China - including the Labor Law, the Labor Contract Law, and related regulations - as well as provincial and municipal rules that implement or clarify national provisions. Chengdu follows the same basic framework used across China, but local authorities such as the Chengdu Human Resources and Social Security Bureau implement policies, set local standards for things like minimum wage and social insurance bases, and operate local labor dispute arbitration committees. Employers and employees in Chengdu must comply with contract, wage, social insurance, working hours, health and safety, and termination rules under Chinese law and relevant local rules.

Why You May Need a Lawyer

Employment disputes often involve complex legal and factual questions, strict procedural deadlines, and local practice nuances. You may need a specialized employment lawyer in Chengdu in the following common situations:

- Unpaid wages or unpaid overtime - when an employer refuses to pay due salary, overtime, bonuses, or severance.

- Wrongful termination or disputes over termination procedures - including cases where an employer fails to follow required notice, severance or consultation steps.

- Labor contract issues - disputes about fixed-term or open-ended contracts, probation, contract renewal, or changes to working conditions.

- Social insurance and housing fund claims - when employers fail to register employees, underpay contributions, or refuse remedy.

- Occupational injury and workplace safety claims - to secure medical compensation and benefits after a workplace injury.

- Collective actions and mass layoffs - to protect employee rights during business restructuring or redundancy.

- Non-compete enforcement or disputes - whether an employer can enforce non-compete clauses, or whether an ex-employee must be compensated during the restriction period.

- Discrimination, harassment, or hostile work environment claims - for protected classes or sexual harassment at work.

- Visa, work permit and foreign employee issues - for foreign nationals working in Chengdu, including work permit, residence permit and tax compliance.

A lawyer can advise on evidence, apply for arbitration, represent you at hearings, negotiate settlement, and, if necessary, litigate in court.

Local Laws Overview

This section summarizes the key legal aspects to watch in Chengdu employment matters. National law provides the framework, and Chengdu implements that framework with local levels and administrative practice.

- Labor contracts - Employers must provide written labor contracts. Fixed-term, short-term and open-ended contracts have different rules. Probation periods are allowed under statutory limits and must be specified in the contract.

- Working hours and overtime - Standard working hours are generally 40 hours per week. Overtime must be paid at prescribed premium rates - typically higher pay for overtime on workdays, rest days and statutory holidays. Local practice follows national overtime rate rules.

- Wages and minimum standards - Chengdu enforces minimum wage and local standards for social insurance contribution bases. The Chengdu Human Resources and Social Security Bureau publishes current minimum wage levels and contribution rates.

- Social insurance and housing fund - Employers must register employees for pension, medical, unemployment, work-related injury and maternity insurance, and contribute to the housing provident fund. Failure to contribute can be the basis for administrative penalties and employee claims.

- Termination and severance - Employers can terminate for cause in certain narrowly defined situations, or may lawfully terminate for business reasons if proper procedures and compensation are followed. Severance is commonly calculated as one month of average salary per year of service, subject to local caps and calculation rules.

- Labor dispute resolution - Labor disputes must generally be submitted to a local labor dispute arbitration committee before going to court. Arbitration is the mandatory first step for most employment-related claims. Chengdu has municipal and district-level arbitration bodies.

- Trade unions and collective bargaining - Trade unions play a role in protecting employee rights and may intervene in mass layoffs or collective bargaining. The local federation of trade unions can offer assistance or representation.

- Foreign employees - Foreign nationals must hold a valid work permit and residence permit to be lawfully employed. Employers hiring foreigners must follow immigration and tax rules specific to foreign workers.

Frequently Asked Questions

What should I do if my employer refuses to pay my wages?

Collect all wage records you have - pay slips, bank transfer records, attendance records, employment contract and any messages. File a complaint with the local labor inspection office at the Chengdu Human Resources and Social Security Bureau and consider submitting a labor arbitration application. A lawyer can help evaluate evidence and prepare the arbitration package. Administrative enforcement by the labor bureau and arbitration are common remedies.

Am I entitled to severance if my employer terminates my contract?

It depends on the reason and the process used. If an employer terminates a contract for business reasons or fails to renew a fixed-term contract under certain conditions, statutory severance may apply. Severance is often calculated by reference to an employee’s average monthly wage and the years of service, subject to local rules. If termination is unlawful, you may be entitled to reinstatement or higher compensation. Consult a lawyer to calculate entitlement based on your facts.

How long do I have to bring a labor dispute claim?

Most labor disputes must be submitted to labor arbitration within one year from the date the dispute arose. There can be exceptions, so do not delay seeking advice. After an arbitration award, if you are dissatisfied, you typically have 15 days to file a lawsuit in the people’s court. Timely action is important.

What are my rights if I am injured at work?

If you suffer an occupational injury, you may be entitled to medical treatment, temporary or permanent disability benefits, and compensation for lost wages under work-related injury insurance. Employers should promptly report the injury to the local social insurance authority. Disputes over recognition of the injury as work-related or the amount of compensation are common and may require legal or administrative action.

Can an employer change my job duties or reduce my salary?

Employers can make reasonable changes if permitted by the labor contract or by mutual agreement. Significant changes to contract terms - such as a salary reduction - generally require employee consent and proper amendment of the contract. Unilateral, substantial changes without agreement may give rise to claims and could be treated as constructive dismissal in some cases.

Do I have a right to a written labor contract?

Yes. Employers are required to provide a written labor contract within a statutory period after hiring. If the employer fails to provide a written contract, there may be increased legal consequences for the employer, including liability to pay double wages for a period and other remedies. Keep copies of any contract offered and signed.

What protections exist for probationary employees?

Probationary periods must be clearly stated in the labor contract and must comply with statutory maximum lengths based on the contract term. Probationary employees retain core employment rights, including wages, social insurance enrollment and protection from unlawful termination. Employers cannot dismiss during probation without lawful cause and supporting evidence.

How does the labor arbitration process work in Chengdu?

Most employment disputes must first go to the local labor dispute arbitration committee. You submit an application and supporting evidence. The arbitration committee reviews the case, may hold hearings, and issues an arbitration award, generally within a statutory time limit. If either party is dissatisfied, they can file a lawsuit in the people’s court within a specified time after the award. Local procedures and timelines are applied in Chengdu arbitration bodies.

What should foreign employees know about working in Chengdu?

Foreign nationals must have a valid work permit and residence permit. Employment contracts for foreigners should state the employer’s obligations on permit application and tax compliance. Employers are responsible for ensuring proper immigration procedures. Disputes over visas, work permits or unlawful employment of foreigners can involve immigration authorities as well as labor authorities.

How can I protect myself before a dispute arises?

Keep thorough records - signed employment contracts, pay slips, bank transfers, attendance and performance records, emails and messages about work changes. Ensure social insurance and housing fund contributions are reflected on your personal account or employer-provided documentation. If possible, negotiate contract terms in writing and seek legal review before signing for important clauses like non-compete or confidentiality.

Additional Resources

Relevant government bodies and organizations in Chengdu and Sichuan that can help or provide information include:

- Chengdu Human Resources and Social Security Bureau - responsible for labor inspection, arbitration referrals and social insurance administration.

- Chengdu Municipal Labor Dispute Arbitration Committees and district-level arbitration bodies - handle labor arbitration applications.

- Chengdu Federation of Trade Unions - can provide support and representation in collective matters and mass-layoff consultations.

- Sichuan Provincial Department of Human Resources and Social Security - for provincial-level policy and guidance.

- Local legal aid centers - for qualifying low-income residents who need legal assistance in labor disputes.

- Employers and professional human resources associations - for guidance on compliance and standard practices.

Also consider consulting certified local lawyers with a focus on employment and labor law, as they will know Chengdu-specific practice and local administrative contacts.

Next Steps

If you think you need legal help with an employment or labor issue in Chengdu, follow these practical steps:

- Gather your documentation - employment contract, payslips, social insurance records, attendance logs, written communications and any evidence of employer promises or violations.

- Note timelines - identify the date the dispute arose and possible deadlines for arbitration or complaint. Acting within statutory time limits is essential.

- Contact the Chengdu Human Resources and Social Security Bureau or the relevant district labor inspection office to report serious violations or to learn about filing procedures.

- Consider an initial consultation with a local employment lawyer - ask about their Chengdu experience, typical outcomes, fee structure and whether they handle arbitration and litigation.

- If cost is a concern, check eligibility for legal aid or contact the local trade union for support or mediation assistance.

- Attempt to preserve a negotiated settlement if appropriate - a lawyer can help draft settlement terms and ensure severance, social insurance and reference issues are addressed.

- If you proceed formally, be prepared to file for labor arbitration and follow the arbitration process. Your lawyer can help prepare your claim, represent you at hearings and guide any appeal to the people’s court if necessary.

Employment law disputes can be stressful, but collecting clear evidence, acting promptly and working with advisors familiar with Chengdu practice will improve your chances of a fair result.

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Disclaimer:
The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation. We disclaim all liability for actions taken or not taken based on the content of this page. If you believe any information is incorrect or outdated, please contact us, and we will review and update it where appropriate.