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ARTICLE · 04 APRIL 2023

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Compensation For Breaching ‘Hukou' Employment Period

In China's job market, many employers seek to attract and retain talent by assisting recruits to obtain local "hukou", the official household registration that formally identifies an individual...

ChinaEmployment and HR

In China's job market, many employers seek to attract and retain talent by assisting recruits to obtain local "hukou", the official household registration that formally identifies an individual as a resident of the area. As hukou is closely tied to a person's education, job and housing prospects, its derived benefits are especially enticing in cities like Beijing.

To retain talent and dissuade new recruits from leaving as soon as hukou is obtained, employers often insist on a hukou-related employment service period, with a default penalty for breaching it.

This article takes Beijing as a prime example and analyses how courts approach disputes arising from employees breaching the service period agreement after receiving their assisted hukou.

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