In Shanghai, foreign employees are protected by China's labor laws and have legal access to a clear dispute resolution framework when facing labor disputes, such as unpaid overtime and wrongful termination of labor contracts.

This guide will equip you with the knowledge to navigate a labor dispute and achieve a just resolution.

I. Labor arbitration and its application

Who can apply

Foreign employees who have disputes with their employers arising from labor-related issues such as working hours, social insurance, welfare benefits, and labor protection

According to the Labor Dispute Mediation and Arbitration Law of the People's Republic of China, the following six types of labor disputes between employers and employees are accepted by labor dispute arbitration organizations:

1. Disputes arising from the establishment of employment relations;

2. Disputes arising from the conclusion, performance, modification, rescission, and termination of labor contracts;

3. Disputes arising from dismissal, removal, resignation, and departure from work;

4. Disputes arising from working hours, rest and leave, benefits, training, and labor protection;

5. Disputes arising from labor remuneration, medical expenses for work-related injuries, compensation, etc.; and

6. Other labor disputes stipulated by laws and regulations.

Where to apply

Arbitration applications should be submitted to the labor dispute arbitration committee in the location where the employee works, where the employer is registered, or where the employer's main office is located.

In Shanghai, applications can be submitted to:

Shanghai Arbitration Commission for the Arbitration of Labor and Personnel Disputes

Address: No 188 Xixiang Road, Putuo district

Business hours: 9:00 am to 11:30 am, 1:30 pm to 4:30 pm, Monday - Friday

Tel number: 021-31012746

Time limit for applying for arbitration

The time limit for applying for arbitration is one year, calculated from the date when the employee becomes aware or should have been aware that their rights have been infringed.

Note: If the dispute is over unpaid labor remuneration during the employment period, the one-year limit does not apply. If the employment contract is terminated, the application must be made within one year from the date of termination.

Required documents

- Three copies of the original application for arbitration

- Copy of passport

- Copy of work permit

- Copy of labor contract

- Employer's company registration information

- Evidence supporting your claims, such as salary slips, offer letters, and email communications

Note: Remember to submit your Application for Labor Arbitration.

What to prepare

- Details of both the plaintiff and defendant, including name, address, telephone number, and legal representative

- Facts of the labor dispute, including your employment details and the reason for the dispute.

Clearly state your claims.

Navigate the process smoothly

- Expect a call from the arbitrator within 2 to 4 weeks for mediation discussions (optional).

- If mediation fails, an official hearing will be scheduled within 2 to 3 weeks.

- A Labor Arbitration decision will be issued within 60 days.

- If there is dissatisfaction, either party can appeal to the court within 15 days.

Fees

- Filing for arbitration is free of charge.

- Fees for enlisting a lawyer may vary.

Appealing or withdrawing

- Appeal to the court within the specified period if dissatisfied with the arbitration result.

- Withdraw the case or settle the process.

Note: If you are in doubt, you may consult with a lawyer. Legal fees are not covered by the employer unless mutually agreed upon.

II. Other ways to resolve labor disputes

Apart from arbitration, there are three other ways to handle labor disputes in China — negotiation, mediation, and litigation.

Mediation

In the event of a labor dispute, where the parties are unwilling to negotiate, negotiations fail, or if an agreement is reached but not honored, you may apply for mediation to the following mediation organizations:

1. Enterprise labor dispute mediation committees;

2. Grassroots mediation organizations established in accordance with law; and

3. Organizations with labor dispute mediation functions at the township and sub-district level.

 

Sources: Official WeChat account of the General Office of the Shanghai Municipal People's Government (ID: shanghaifabu); Government Online-Offline Shanghai; m.sh.bendibao.com

 

 

Updated July 29, 2026