In this episode of Digital China, Ashley speaks with Adam Livermore, the equity partner from Dezan Shira & Associates about Human Resources in China and how to do it right. You’ll learn everything from how to hire, manage and let go of your staff in China.
China is a complex system when it comes to the field of Human Resources. One of the major differences in China compared to the rest of the world is that there are a lot of differences and inconsistencies across regions, especially in Northern China. There are lots of regional laws and regulations that apply and they can be vastly different. For example, foreign employees hired under a Dalian-based contract would require to pay social insurance whereas those who are employed in Shanghai don’t. Further adding to this complexity is even the same regulations under the same national employment contract law can be interpreted and implemented differently across regions. Taking Adam’s example of a foreign employee based in Dalian once again. For foreign employees that have a fixed-term contract, their company would only have one opportunity to terminate the contract at the end of the first fixed-term contract. At the end of the second fixed-term contract, the company would be obligated to provide a non-fixed term contract. However, in Shanghai, companies would have a total of two opportunities to terminate the contract at the end of the first and second fixed-term contract. This is precisely why Human Resources can be a difficult concept for some of the foreign companies to comprehend and navigate in practical circumstances.
Listen to this episode of Digital China to hear Ashley and Adam go over topics such as salaries, bonuses, employment contracts, social insurances, full and part time staff, interns, foreign employees and much more. If you would like help with your China market research and strategy or conduct an expert call with Ashley to have your questions answered, get in touch with us!