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ARTICLE · 03 JANUARY 2008

Reminder—New Chinese Labor Contract Law

Thelen LLP
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As we reported earlier this year, the PRC enacted sweeping new laws governing employment contracts. Those laws will become effective very soon. If you have operations and employees in China, you need to comply with the New Labor Contract Law effective January 1, 2008.

ChinaEmployment and HR
Linda Husar
Linda Husar
Meg Utterback
Meg Utterback

As we reported earlier this year, the PRC enacted sweeping new laws governing employment contracts. Those laws will become effective very soon. If you have operations and employees in China, you need to comply with the New Labor Contract Law effective January 1, 2008. You should be reviewing your labor contracts and your handbooks to update them for compliance with the law. Here are a few areas to consider:

  • Do all the employees have written contracts?
  • What is the duration of those contracts? If one year, should the term be increased to a longer fixed term?
  • What are the non-compete terms? Is the non-compete for two years, geographically limited and supported by adequate consideration?

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