Employment status includes full-time employees, part-time employees, self-employed individuals, and other individuals in flexible employment.

Employment contracts are divided into fixed-term employment contracts, open-term employment contracts, and project-based employment contracts.

A fixed-term employment contract is an employment contract with an expiration date. An open-term employment contract is a contract without an expiration date. A project-based contract expires upon completion of a specific job assignment.

Full-time employees must have written employment contracts. The written employment contract must be concluded within 30 days when the employee gets on board. Part-time employees can be employed on underwritten or oral contracts. The following terms must be included in an employment contract:

a. the name, domicile and legal representative or main person in charge of the employer;

b. the name, domicile and number of the resident ID card or another valid identity document of the employee;

c. the term of the employment contract;

d. the job description and the place of work;

e. working hours; rest and leave;

f. compensation;

g. social insurance;

h. labor protection, working conditions, and protection against occupational hazards; and

i. other items that laws and statutes require to be included.

For part-time employees, employers are only required to make contributions to occupational injury insurance. Employers are not allowed to set a probationary period for part-time employees. PRC law allows either the employer or the part-time employee to terminate the employment contract at any time, without prior notice. As a general rule, the employer is not required to pay any economic compensation to the employee. Although there is no specific rule regarding whether part-time employees enjoy statutory leave, it is unlikely for part-time employees to enjoy such benefits in practice.

Employment contracts cannot be assigned at will because there are strong personal attributes attached to the contracts. The assignment is only allowed with the employee's consent. Any modifications to employment contracts shall be made in writing.

If the business is subject to a merger or a division, existing employment contracts remain effective. However, employment contracts may not be transferred between employers. Thus, in an asset or business transfer, there is no automatic transfer of employees to the new owner. In order to transfer employees in such a situation, employees must terminate contracts with the first employer and sign contracts with the new employer. Accordingly, the employee is entitled to severance if the first employer terminates the employment contract or the new employer refuses to sign the new employment contract with the employee.

In general, a change in the ownership of the employer does not affect existing employment contracts. The performance of employment contracts will not be affected when the control of the employer is changed. Employees are not entitled to any statutory rights regarding the change of control of employers.

Generally, an employer may not change the terms of an employment contract without the employee's consent. An employer may make unilateral changes in very limited circumstances, such as when the employee is incompetent or unable to continue his original work after the medical treatment of illness or injuries. Any alteration of the employment contact generally must be executed in writing. An employer may be deemed to have breached a contract if the employer changes a material term without the consent of the employee.

At-will employment is not allowed. Employers must comply with the Fourth Chapter of The Labor Contract Law, which governs the dissolution and termination of employment contracts. An employee may be terminated only on grounds expressly set forth in PRC law.

Employees may file an application to the labor dispute arbitration committee/court to confirm that the dismissal or termination is illegal. If the employee's claim is successful, the employer will be either required to (a) pay the employee severance at the rate of twice of financial compensation for wrongful termination or (b) rehabilitate the labor contract with the employee and pay back the salaries and social insurance of the employee during the wrongful termination period.

Currently, there are no specific rules concerning the protection of whistleblowers. However, the PRC government has issued official guidance regarding the protection of whistleblowers. It is believed that laws for protection of whistleblowers will be stipulated in the near future.

Under labor laws, there is no specific rule concerning the right of the employee's privacy. However, Civil Code stipulates that a natural person enjoys privacy rights. Under Civil Code, no organization or individual may infringe upon any other's right of privacy by spying, intrusion, divulgence, public disclosure, or any other means. Under Tort Law, persons who infringe privacy rights shall undertake tort liability. Employees may bring actions in court for infringement of privacy rights under the Civil Code.

The Employment Promotion Law specifies that employees shall not be discriminated against on the grounds of ethnicity, race, gender, religion, disability or status as a migrant worker from a rural area. In general, employers cannot refuse to employ a person because the person is the carrier of an infectious disease. Employees alleging discrimination may bring actions in court and demand compensation from employers.

All employees are entitled to statutory public holidays. An employee who has worked continuously for at least one year is entitled to paid annual leave of five to fifteen days. Paid annual leave entitlement is based on an employee's total working service in the workforce. Employees under the standard working hour system must be provided with at least one rest day per working week. Employees under an alternative working hour system must be provided rest through measures such as shifts and flexible working hours.

An employee suffering from non-occupational illness or injury is entitled to statutory medical treatment leave of between 3 and 24 months. The length of the leave will depend on the employee's total number of years in the workforce and the years accrued at the current employer. Local regulations may apply in regards to the length of the medical treatment left. When an employee is on statutory medical treatment leave, the employer may terminate the employee only for cause.

Employees suffering from occupational injuries or illnesses are entitled to fully paid medical treatment leave. Employees can usually take up to 12 months' leave depending on the status of the illness or injury. When an employee is on medical treatment leave, the employer may terminate the employee only for cause.

Female employees are entitled to medical examination leave during pregnancy. Employees are usually entitled to 98 calendar days of maternity leave, and one hour per day for nursing leave during the first year after giving birth. Male employees are entitled to paternity leave in most jurisdictions. The specific leave for parental rights may vary around the country.

There have been no changes to leave benefits in the past 12 months, and there is no proposed law that would impact leave benefits so far.

PRC law permits post-termination non-compete restrictions to be applied to employees who are senior managers or senior technicians, or who otherwise have access to confidential information.

The geography, scope and terms of non-competition terms should be agreed upon by the employee and the employer. The term of the non-competition obligation shall not exceed two years after the termination of an employment contract.

Employees cannot be terminated for refusing to sign a restrictive covenant under labor laws. Employers must pay non-compete compensation to employees monthly during the term of the non-compete obligation. The default national compensation standard is 30% of the employee's prior salary. Some local jurisdictions set down higher compensation standards than the national level.

Both employers and employees are required to make contributions to social insurance funds including pension insurance, medical insurance, and unemployment insurance. Employers are also required to contribute to occupational injury insurance and maternity insurance. Contributions made by employees must be withheld by employers from employee salaries.

It is mandatory for employees to participate in the social insurance system, including pension insurance, medical insurance, occupational injury insurance, unemployment insurance and maternity insurance.

Female employees are entitled to full pay during maternity leave.

PRC law provides a statutory retirement age for employees. The retirement age for males is 60 years old. The retirement age for females is 50 years old (or 55 years old for certain management positions). Notably, raising the retirement age is on the government’s agenda.

Employees are entitled to all insured benefits as long as the employee meets the requirements of claiming such benefits. Working beyond retirement age would not affect the employee's pension benefits. Meanwhile, the law does not require the employer to pay social insurance funds after the employee retires.

Up to now, there are no imperative rules of law that require all PRC citizens to get the COVID-19 vaccine. Normally, an employer (especially a private company) does not have a legal basis to make the COVID-19 vaccine mandatory for its employees. However, employers in special industries such as catering, medical, logistics and airline may establish vaccination obligations through industrial rules and regulations. If employees refuse to get the COVID-19 vaccine for no reason, employers in special industries can discipline employees based on relevant industrial rules and regulations. However, we do not believe that the employer is entitled to terminate the employee simply because of his/her refusing to get the vaccine.

An absent government order to shut down, and if the employer meets the conditions to resume work, employees cannot refuse to return to the office simply because he or she is afraid of COVID-19. Otherwise, employees will be treated as absent without approval and the employer may terminate the employees’ employment if there are relevant provisions in the employment contract or employer’s rules and regulations providing that the employer has the right to terminate employees based on absence. So far, most Chinese employers have already resumed work and their employees have already returned to the office. It may not be a problem in practice here in China.