Hiring in China: Complete Guide 2027

China's Labor Contract Law requires written contracts to be signed within one month of employment commencement — failure triggers double salary penalties. Fixed-term contracts are common, but after two consecutive fixed-term contracts, the employee acquires the right to an open-ended contract. Probation periods are capped at six months for contracts of three years or more. An employer may dismiss only on statutory grounds. Dismissal on no-fault grounds requires statutory severance of one month's salary per year of service, and an unlawful dismissal costs double severance. An EOR ensures contract compliance, manages the statutory probation and renewal process, and handles the complex city-level social insurance and housing fund filings that vary significantly across Shanghai, Beijing, Shenzhen, and other major hiring locations.

Figures checked against official sources: National People's Congress Standing Committee (Labor Contract Law, Individual Income Tax Law); State Council (social insurance rates, Housing Provident Fund, paid annual leave); Shanghai Municipal Human Resources and Social Security Bureau; Shanghai Healthcare Security Bureau. Checked November 2026.