China

China is the world’s most populous country located in Southeast Asia. It spans 5 time zones and borders 14 countries, and has the world's largest economy by GDP. China is currently the world’s #1 manufacturer and exporter and has the fastest-growing major economy.

Parental Leave

Pregnant employees in China are entitled to 98 days of paid maternity leave. The leave usually starts 15 days before the due date. The salary rate paid during this time will be equal to the average salary of all the female employees in the company, or 3 times the national minimum wage (whichever is the greater amount). Fathers are entitled to between 10-15 days of paid paternity leave, depending on the region. Social Security will reimburse the employer for wages equal to 3 times the minimum wage for mothers, and average local wage for fathers, and the employer will cover the rest.

Sick Leave

Sick leave in China usually depends on the employee’s length of service at the company. While there are regional variations, a common breakdown looks like this:

• Less than 5 years = 3 months of sick leave
• 5-10 years = 6 to 9 months of sick leave (depending on region)
• 10-15 years = 12 to 18 months of sick leave (depending on region)
• 15-20 years = 18 months of sick leave
• 20+ years = 24 months of sick leave

The amount of pay that the employee receives during this period is determined in a similar way. when on sick leave are also determined by their length of service. In the case of sick leave of six months or under the calculations are as follows:

• Less than 2 years = 60% of salary
• 2-4 years = 70% of salary
• 4-6 years = 80% of salary
• 6-8 years = 90% of salary
• 8+ years = 100% of salary

If the length of the sick leave reaches 6 months, the salary after that period will be paid at 40-60%.

Paid Leave

In China there are 11 national holidays, and most regions have their own additional holidays. Full-time employees also receive 5-15 days of paid time off each year that accrues monthly, depending on how long they’ve worked at the company:

• Less than 1 year = No entitlement
• 1-10 years = 5 days
• 10-20 years = 10 days
• 20+ years = 15 days

Employees may also be granted additional paid leave for bereavement and marriage.

The minimum wage in China is different for each region, but hovers around CNY 2,590 per month. Working hours are 8 hours per day and 40 hours per week, with a maximum of 45 hours worked per week.

Any work past the standard weekly working hours is considered overtime and is paid at 150% of the regular salary (and 200% on weekends). Usually only one hour of overtime a day is permitted. While working on public holidays is uncommon in China, if an employee has to work on a public holiday the time is paid at 300% of the hourly rate.

Process

There is no at-will termination for employers outside the probation period, and any terminations must be for just cause. Just cause terminations include employee resignation, mutual agreement, employee misconduct or negligence, illegal activities, and a few more.

Notice Period

Typical notice periods in China for terminations that are not of just cause are 30 days, and employers can choose to give payment in lieu of notice.

Severance Pay

Severance pay for terminations depends on the length of employment at the company. It’s paid at the rate of 1 month's salary for each year at the company.

It’s customary to pay a 13th-month and sometimes also 14th-month salary in China, paid out during the time of the Lunar New Year or Spring Holiday. While it is not legally required, it will commonly be stipulated in the employment contract.