→ Hiring Employees in China
The employment of staff is a fundamental issue that all foreign companies or Representative Office entering China need to be familiar with. What rules and regulations apply for the setting up of a labor contract? How do employees and employers pay social benefits and taxes? What are the differences between employing locals and foreigners? As Representative Offices or the foreign companies that has no legal entity in China aren’t allowed to hire local staff directly; how can they employ staff? How can HR outsourcing contribute to solve these issues? These are examples of questions puzzling companies as they begin the hiring process.
Generally, apart from the usual employment requirement, such as signing contracts with employees, meeting salary standards and issuing salary in a timely manner, employers in China are also obliged to:
1. File their staff employment and dismissal with relevant government bureaus
2. Maintain employees’ personnel file – a unique Chinese document that records all academic and employment history of an employee, and the responsibility of maintaining the records is transferred from one employer to another when the employee changes jobs
3. Withhold and pay individual income tax on behalf of their employees
4. Make monthly contributions to their employees’ social benefits and housing funds
Most of the above processes are complicated by the involvement of several government bureaus and tedious paperwork. For the unfamiliar, staffing their China operations may pose a challenge and many choose to rely on HR service providers and HR specialists to guide them though these HR administrations in China.
→ China Payroll Service Detail
→ China Benefits Administration Service
→ China Employee Leasing/Talent Dispatch Service
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