As stated in LABOUR LAW OF PEOPLE’S REPUBLIC OF CHINA and A REGULATION FOR EMPLOYMENT OF FOREIGN-CAPITAL ENTERPRISES, foreign-capital enterprises have the right to decide for their company structures and employment needs as necessary of their operations. They also have the right to recruit their own employees by applying to a variety of legal agents including human resource organizations, recruitment fairs and advertising on the media. The recruitment of employees from foreign countries, Hong Kong, Taiwan and Macao requires permission and certificates from the labor office of the local government.
Under A TEMPORARY REGULATION OF SALARY AND INCOME IN THE FOREIGN-CAPITAL ENTERPRISES, the enterprise decides the Salary system, salary level and bonus and stipends in line with the national and local minimum salary standards. The increase of the average salary of the employees is based on the development of the enterprise. The company’s annual return, productive rate and the prices index of local consumer goods are the factors for the board of directors or the enterprise to take into consideration for the payroll.
Insurance and Beneficiaries
Foreign-capital enterprises are supposed to participate in the social insurance systems of pension, unemployment, medical care, injury and childbirth through regular and adequate payment to the insurance agencies as required by law. And also employees are supposed to pay the required amount for their pension, medical care and unemployment insurances. In addition to the insurances above, there are housing fund, professional training, stipends and legal holidays.
Foreign-capital enterprises implement China’s current working hour system, 8 hours per day and 40 hours per week. With the permission from the labor bureau, the enterprises can operate on a non-standard working hour system, e.g. irregular working hours and the payment on the total working hours, if the enterprises cannot apply to the standard working hours as a result of the production reason.