The labor law of the PRC is based primarily on the PRC Labor Law and the PRC Labor Contract Law. Overall, Chinese labor
law is quite employee-friendly, especially compared to countries
such as the United States, and it contains some very specific
principles on overtime pay. This article will briefly describe the
basic principles as well as commonly-used loopholes and high-risk
strategies employed by foreign-owned companies in China.
The Formal Rules on Overtime Pay
Following are the standard rules on overtime pay in the PRC
(which can be bent under certain circumstances):
- Working time that exceeds the eight
hour a day standard must be paid at 1.5 times the employee's
contracted rate.
