Non-compete compensation standards clarified

Non-compete agreements, which restrict employees from joining competitors or starting similar businesses after leaving their jobs, must include economic compensation clauses to be legally enforceable.

When can a service period be set?

A service period refers to the minimum duration an employee must work for an employer after receiving special benefits, such as company-sponsored specialized training, as mutually agreed upon by both parties.

Are part-time workers allowed to sign contracts with multiple employers?

In China, part-time workers are legally permitted to sign contracts with multiple employers as long as their later jobs do not interfere with the performance of their earlier contracts.

Do employers have to pay compensation for not renewing a contract?

According to Article 46 of the Labor Contract Law, when a fixed-term labor contract is terminated, the employer must pay economic compensation

Is an open-ended contract mandatory after 2 fixed-term contracts?

Once two consecutive fixed-term employment contracts have been signed, the employer is prohibited from opting for another fixed-term contract.

Can a letter of appointment substitute for a labor contract?

A letter of appointment does not meet the formal requirements of a labor contract.

Does the company need to pay financial compensation if it proposes to terminate the employment contract after the medical treatment period ends?

Yes, it is required.

FAQs about labor rights

According to China's Labor Law, workers, regardless of their ethnic group, race, sex, or religious belief, should not be discriminated against in employment.