Human Resources in China
- Dr. Lefan Gong, Zhonglun Law Firm
This article provides foreign companies doing business in China with advice on how they can prepare themselves to be successful when facing wrongful termination claims from former employees in China. The new Labor Contract Law in China has made the dispute resolution environment fairly pro-employee, so it is important for companies to take multiple precautions to protect themselves in labor disputes.
- Armstrong Teasdale LLP
On June 29, 2007, after more than two years of drafting/deliberation and an unprecedented amount of public comment, China enacted the PRC Employment Contract Law (the “ECL”). The following article summarizes key provisions of the PRC Employment Contract Law, which became effective on January 1, 2008. The PRC Employment Contract Law has been controversial among employers in China because of its increased employee protections. It is critical for foreign investors to understand the ECL before entering into new contracts with Chinese employees.
- Greg Hallahan, Pacifc Strategies & Assessments
Hiring the wrong person can cost your company time and money, as well as possibly resulting in legal issues. This article looks at some common problems employers might face when hiring in China, before identifying a few basic steps a company can take to mitigate these risks.
- The JLJ Group
The laws and regulations regarding hiring, managing, and terminating employees in China are highly complex and rapidly evolving. The regulatory environment is highly pro-employee, so even inadvertent violations by employers may lead to harsh sanctions. The following article discusses how employers can manage risks and reduce administrative burdens by outsourcing human resource functions in China.
- Ambition Recruit
Finding, paying and retaining employees in China remain among the toughest challenges for foreign SMEs. Foreign companies are facing high employee turnover in China across all industries.
The Current State of the Job Market in China
Hiring is difficult and becoming expensive. China’s skilled labor shortage is most prevalent in middle management. Foreign banks that are doubling their outlets over the next three years, international retailers that are each expanding to over 100 outlets, and hotel brands that are growing rapidly are all looking at the same pool of potential hires – particularly in middle management. This competition for talent is pushing China wages up an average of 15% per year. It is not uncommon for key talent to receive annual increases of 50% to 100% in the current market.