Our collection of resources based on what we have learned on the ground
Resources
Q&A
What is a hukou, and how does it effect the recruitment process in China?
- February 2016
- Members Access
A hukou is a kind of domestic passport for all Chinese citizens. Typically, one’s hukou will be their birthplace, and it usually determines where the citizen is entitled to social welfare and benefits such as housing funds and educati...
Q&A
What is the “Equal Pay for Equal Work” Principle?
- February 2016
- Members Access
Labor dispatch is an alternative option for foreign invested entities looking to hire Chinese staff. Concerning labor dispatching, the government requires employers to apply the same remuneration standards for dispatched employee...
Q&A
What makes an outsourcing contract different from a dispatching contract?
- February 2016
- Members Access
Generally, companies outsource tasks that require a specific skillset, a high degree of confidentiality, or those that incur major consequences if incorrectly implemented. Whereas dispatched employees sign direct labor contracts with the hiring compa...
Q&A
What are deductible allowances for foreign staff in China?
- February 2016
- Members Access
Under the provisions of Chinese tax law, certain allowances are deductible before calculating the tax burden on foreign employees’ monthly salaries. These categories must be specified in the labor contract, and employees must be able...
Q&A
What are some of the advantages of outsourcing payroll in China?
- February 2016
- Members Access
Payroll processing can be a challenging task in China considering its complex social benefits system. By outsourcing payroll, companies can increase the efficiency and accuracy of the process. Companies that specialize in payroll usually have t...
Q&A
How can a company dismiss an employee during the probation period?
- February 2016
- Members Access
While both parties can dissolve the labor contract unilaterally by giving three days’ notice to employees on probation, the company can only dismiss them if there is clear evidence that they do not satisfy the job requirements. The company has to ...
Q&A
What are some of the recent changes in China’s visa system?
- February 2016
- Members Access
The Chinese government amended its visa regulations in September, 2013. The F-Visa, which was previously given to foreign business travelers, was transformed into a visa solely for non-commercial purposes, such as cultural exchanges and visits....
presentation
Best Practices for HR & Employment Management in China
- January 2016
- Members Access
This presentation by Stephen O'Regan, International Business Advisory associate, is a comprehensive guide to dealing with employees from hiring to dismissing and from staff handbook rules to contract signing.
report
Transfer Pricing in China
- January 2016
- Members Access
When a business transaction occurs between businesses that are controlled by the same entity, the price is not determined by market forces, but by the entity controlling the two businesses. This is called transfer pricing. Such transactions can serve...
Q&A
How is the labor arbitration process in China?
- December 2015
- Free Access
The labor arbitration process in China consists of four phases. First, the employer and employee are encouraged to sort out the matter on their own out of court. Should this fail, both parties might seek to mediate through the help of the Labor...
Q&A
What should foreign enterprises in China be cautious about regarding the laws on...
- December 2015
- Members Access
Unlike many western countries whose legal systems have grown to the complexity of today over hundreds of years, China only embarked upon the establishment of rule of law in the Western sense of the word in 1979. Not only might this underdeveloped leg...
Q&A
Can a foreign invested enterprise in China terminate labor contracts unilaterall...
- December 2015
- Free Access
Due to the slowdown of the Chinese economy, more foreign-invested enterprises (FIE) are seeking to shift operations to cheaper locations in order to control expenses. When employees are unwilling to relocate, the employer can terminate the labo...
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