China is located in Asia and is the most populated country in the world with over 1.39 billion people. Despite being the third largest country in terms of landmass, it only have one time zone, that of the capital city Beijing. China consists of 33 administrative units directly under the central government. These consist of 22 provinces, 5 autonomous regions, 4 municipalities and 2 special administrative regions (Hong Kong and Macau). The official spoken language is standard Chinese but there are several hundred languages spoken throughout China and its provinces. During the last decade, China's economy has grown 7 times as fast as the United States and is now the Number 1 exporting country in the World. The national animal is the Giant Panda
China still has a culture of “keeping face” which is best compared to having or building a reputation. Chinese are very detail oriented so will have done their research on you and your company before a business meeting. The same is expected from you. Dress well for meetings as this is a sign of respect. A meeting usually starts with small talk. Do not get upset or lose composure during a meeting. When making decisions, the Chinese usually extend negotiations past deadlines so be patient.
The cost for an employer to hire someone in China is a plus of 28.52% to the gross salary.
Regular employees are paid monthly.
Commissions, incentives, and bonuses are variable and will be agreed upon directly with the employer.
If a public holiday falls on a Saturday or a Sunday, then a weekday is declared the public holiday instead. 3 weeks before the start of the new year, the public holidays are announced.
January 1st – New Years Day
1st day of 1st Lunisolar month (January/February) – Chinese New Year
5th solar term (4 April, 5 April or 6 April) – Tomb sweeping day
May 1st – Labour Day
5th day of 5th Lunisolar month (June) – Dragon Boat Festival
15th day of 8th Lunisolar month (September) – Mid-Autumn Festival
October 1st, 2nd, 3rd – National Day (3 days holiday)
Office hours are from 8:00am to 6:00pm, Monday to Friday.
A regular work week is 40 hours.
Overtime must be paid with 150% of the hourly rate. An employee may not work more than 36 hours of overtime in a month.
In China, after having worked for more than 1 year (this can be several employers, not just one) an employee is entitled to 5 days annual leave. This is valid for 1-10 years of service. After having worked for 10-20 years, an employee is entitled to 10 days of annual leave.
When one falls ill in China, one has to receive an official certificate from a doctor, a so-called “official approval of sick leave certificate.” The employee then has to give this to his employer to start the sick leave. The sick leave entitlement is 3 months for employees with less than 10 years of cumulative years of working.
The sick pay is calculated based on how long an employee has worked continuously.
If an employee is sick for less than 6 months, the following applies:
continuous work for less than 2 years – 60% of the salary
continuous work between 2 and 4 years – 70% of the salary
continuous work between 4 and 6 years – 80% of the salary
continuous work between 6 and 8 years – 90% of the salary
continuous work for more than 8 years – 100% of the salary
If an employee is sick for longer than 6 months, the following applies:
continuous work for less than 1 year – 40% of the salary
continuous work between 1 and 3 years – 50% of the salary
continuous work between 3 and 6 years – 60% of the salary
When terminating an employee in China, three reasons are allowed: termination due to operational reasons, personal reasons or behavior.
A notice period of 30 days must be adhered to unless the employee is still in the probation time, at which point the notice period is 3 days.
To avoid a court case, most employers will reach an agreement with the employee and an agreed upon severance pay. Both parties sign this contract to avoid future disagreement.
Severance pay is based on the reason for termination but is usually 1 months' salary for every year of employment. This is capped at three times the minimum wage and cannot be more than 12 months.