Introduction
With increasing foreign investments and mergers and acquisitions activities in China over the last few years, employees’ relocation has become a very important issue for foreign companies entering or expanding their business in China. The legislation that governs the labor relationship in China is the PRC Labor Law, which came into effect on 1 January 1995. Various ministries may publish their own regulation and each province can issue its own directives, e.g. the Shanghai Labor Contract Regulations for Shanghai city.
Overview of the PRC Labor Law
The PRC Labor Law applies to all enterprises, individual economic organizations established within Chinese territory and the employees with whom they have formed contractual relations (Article 2, PRC Labor Law). As to the form of the employment contract, it should be governed by PRC Labor Law, in written form and in Chinese. A foreign language version of the employment contract can also be prepared, but it must be
