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ARTICLE · 18 FEBRUARY 2015

Circumstances to conclude an open-ended employment contract

There still exist many problems when concluding open-ended employment contracts under the Employment Contract Law.

ChinaEmployment and HR

by Maggie Kong, Shane Lou, Susan Shan, Kent Xu, Grace Yang, Anderson Zhang and John Zhou

Article 14 of the Employment Contract Law regulates that: if a worker proposes or agrees to renew his employment contract or to conclude an employment contract in any of the following circumstances, an open-ended employment contract shall be concluded, unless the worker requests the conclusion of a fixed-term employment contract:

  1. the worker has been working for the Employer for a consecutive period of not less than 10 years;
  2. when his employer introduces the employment contract system or the state owned enterprise that employs him re-concludes its employment contracts as a result of restructuring, the worker has been working for the employer for a consecutive period of not less than 10 years and is less than 10 years away from his legal retirement age; or

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