A labor contract is a legally binding document that safeguards the rights and obligations of both employers and employees. Below is a clear and practical guide outlining key points to consider before signing a labor contract.

Types of labor contracts

In China, labor contracts are categorized into three types:

1.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.

2.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.

3.Task-based contracts:

These end upon completion of a specific task or project, as agreed by both parties.

Essential clauses in a labor contract

According to the Labor Contract Law of the People's Republic of China, a labor contract must include the following legally mandated clauses:

- The employer's name, address, and legal representative or principal responsible person

- The employee's name, address, and ID card or other valid identification number

- Contract duration

- Job description and work location

- Working hours, rest days, and leave

- Remuneration details

- Social insurance

- Labor protection, working conditions, and occupational safety measures

Additional clauses may cover probationary periods, training, confidentiality, supplementary insurance, and other benefits.

When should the contract be signed?

The Labor Contract Law requires a written contract to be signed within one month of the employee's first working day, regardless of any probationary period.

Electronic employment contracts

If an electronic contract is used, the employer must:

• Promptly notify the employee to download and save the contract
• Explain how to access and download it
• Provide necessary guidance to ensure the employee can view, download, or print the complete contract using standard devices

Upon request, the employer must provide at least one free printed copy, stamped to confirm it matches the electronic version.

Should the employee keep a copy?

Yes. A labor contract takes effect once both parties have signed or stamped it. Both the employer and the employee must retain one copy.

If the employee does not have a copy, it may complicate future dispute resolution.

Employees are advised to request a signed copy for their own records. If the employer refuses, the issue may be reported to the local labor supervision authority, which can require the employer to comply.

By understanding these key points, employees can safeguard their rights and ensure that their employment terms are clear, fair, and legally secure.

Source: Official WeChat account of the Ministry of Human Resources and Social Security at "rsbwwx"