Practical guide to probationary periods in Shanghai

english.shanghai.gov.cn
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For employees, entering the workplace often involves a probationary period.

Here is a reference guide answering some frequently asked questions.

1. What are the rules regarding the length of probation periods?

According to the Labor Contract Law of the People's Republic of China:

  • For fixed-term employment contracts lasting three months to less than one year, the probation period must not exceed one month.
  • For fixed-term employment contracts lasting one year to less than three years, the probation period must not exceed three months.
  • For fixed-term employment contracts of three years or more, and open-ended employment contracts, the probation period must not exceed six months.
  • No probation period may be stipulated for:

- Contracts based on completing a specific task.

- Contracts with a duration of less than three months.

Click here to learn what to know before signing a labor contract in China.

Key notes:

- Only one probationary period can be stipulated between the same employer and employee.

- The probation period is counted as part of the employment contract.

- If a contract stipulates only a probation period, it will be treated as the full contract term, not as probation.

- According to China's regulations on personnel management in public institutions, for newly hired employees signing employment contracts longer than three years with public institutions, the probation period is 12 months.

- For part-time employment, no probationary period may be agreed upon.

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2. Is an employment contract required during probation?

Yes. An employment contract is mandatory during the probationary period.

According to the Labor Contract Law of the People's Republic of China, an employment relationship is established on the first day of work. Therefore, a written employment contract must be signed when the employment relationship begins.

Note:

- If a written contract is not signed at the start, it must be signed within one month from the first day of work.

- If an employer fails to sign a written employment contract for more than one month but less than one year after the start of work, they must pay the employee double the wage for each month without a contract.

3. How should wages be calculated during probation?

An employee's wage during probation must not be lower than the lowest wage for the same position at the employer, or 80 percent of the wage agreed upon in the employment contract.

In addition, the wage must not be lower than the local minimum wage standard where the employer is located.

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4. Is social insurance required during probation?

According to China's social insurance law:

  • Employers must apply for social insurance registration for employees within 30 days of employment. If registration is not completed, the social insurance agency will determine the required contributions.
  • Both employers and employees must participate in social insurance and make contributions. This is required by law.

Therefore, even during probation, social insurance contributions cannot be waived, even by mutual agreement between employer and employee.

 

5. Is it legal to delay social insurance until the end of the probationary period?

A: No. Social insurance is a mandatory policy implemented by the state to provide life and medical security for employees. "Mandatory" means the rights and obligations of both parties are governed by laws and cannot be negotiated. Once an employment relationship is established, the employer must register the employee for social insurance. Failure to pay social insurance during the probationary period infringes on the employee's rights and may result in legal consequences for the employer.

 

Source: Official WeChat account of the Ministry of Human Resources and Social Security (ID: "rsbwwx")

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