Practice Area · 04
China Employment Law for Foreign Companies
China’s employment law framework is protective, procedural and localised. Li & Shi China Counsel helps foreign employers build compliant HR systems, manage employee exits and resolve labour disputes without unnecessary disruption to business operations.
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Overview
Market Entry Insight
For foreign companies, China employment risk often arises from assumptions imported from other jurisdictions. At-will termination does not apply. Mandatory written employment contracts, social insurance contributions, working-hour rules, staff handbook procedures, union notification requirements and statutory severance rules must be managed carefully.
Recent judicial and regulatory developments have increased scrutiny of issues such as mixed employment among affiliated companies, social insurance non-compliance and enforceability of non-compete obligations. Employers should ensure that contracts, staff handbooks, compensation structures and termination procedures reflect current PRC law and local practice.
We advise foreign-invested enterprises, representative offices, start-ups and multinational teams on day-to-day HR compliance and employment disputes in China.
Key Risks
Service
Scope of Services
01
Employment Contracts
PRC-compliant employment contracts, offer letters, confidentiality clauses, IP ownership clauses and executive employment arrangements.
02
Staff Handbooks and HR Policies
Handbook drafting, consultation/announcement procedures, disciplinary rules, attendance, leave, expense, anti-bribery and misconduct policies.
03
Social Insurance and Benefits
Contribution obligations, local bases, historical non-compliance review, remediation strategy and employee communication.
04
Termination and Restructuring
Grounds analysis, evidence preparation, union notification, severance calculation, mutual termination agreements and exit documentation.
05
Non-Compete and Confidentiality
Enforceable non-compete arrangements, trade secret protection, compensation standards and post-employment enforcement strategy.
06
Labour Arbitration and Litigation
Representation in wrongful dismissal, wage, social insurance, non-compete and employment contract disputes.
Representative Matter
Wrongful Dismissal Defence - Foreign Retail Employer
A foreign retail employer faced a labour arbitration claim after terminating a managerial employee. The claim involved alleged procedural deficiencies, statutory severance and social insurance issues.
The strategy combined defence preparation, evidence review and settlement negotiation. The immediate goal was to control financial exposure while avoiding reinstatement and preventing similar claims from other employees.
price
Pricing Language
Fixed fee
Available for clearly scoped tasks such as demand letters, initial case assessments, standard filings or contract review.
Hourly rate
Senior executive exits, restructurings, complex disputes and multi-location employment projects.
Labour arbitration package
Fixed-fee representation may be available for standard labour arbitration matters after case assessment.