From hiring to firing: a basic guide to the Chinese employment law life cycle

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Since the PRC Employment Contract Law, issued by the Standing Committee of the National People’s Congress, came into force on 1 January 2008, employment related issues have attracted increasing attention in the Chinese and international media. The strike at Honda’s facilities in Guangdong and the suicides at Foxconn highlighted the increasing tension in labor relations in China. The authorities are striving to maintain social stability by tackling income inequality and strengthening social security, bringing further reform to Chinese labor laws and regulations. The wave of unrest and continuing legal reforms create new challenges for all companies operating in China, especially foreign companies. It is time for employers to re-examine every step of the employment process and how it is handled, from hiring to firing, to avoid costly mistakes.

For many employers, the key to having a productive and high-performing workforce is recruiting the right people. However, it is important for employers to be aware that even before an employee commences work, there are a number of legal issues which arise in the process of seeking, interviewing and selecting candidates for a position…

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