Workplace Rights and Injuries

For ordinary workdays, overtime must be paid at 1.5× the wage. On rest days, if no compensatory time off is granted, the rate rises to 2×. On statutory holidays such as New Year’s Day, Spring Festival, Labor Day, and National Day, overtime must be paid at 3× the wage, and compensatory time off is not permitted. If a company refuses to pay, workers may file a complaint with labor authorities. Should payment still be delayed after a deadline set by authorities, the employer must pay an extra penalty equal to half to one‑fold the original amount owed.

Cost

There is no direct cost. Simply keep copies of time‑card records, shift schedules, and overtime approval forms; also screenshot any messages from supervisors assigning work in the team chat. The challenge is remembering to do this each month.

Benefit

Statutory limits cap normal working hours at 8 per day and 44 per week. Regular overtime should not exceed one hour daily; under special circumstances it may reach three hours per day, but the monthly total must stay under 36 hours. Overtime pay follows three tiers: 150% of the wage for ordinary days, 200% for rest‑day work without compensatory time, and 300% for statutory holiday work. The law explicitly forbids substituting compensatory time off for holiday overtime pay. Employers that fail to pay face orders to settle the debt promptly; non‑compliance triggers an additional penalty of 50%–100% of that debt.

Note

Rest days and statutory holidays are distinct categories; the latter comprise only a handful of nationally designated days each year. Days created through compensatory leave arrangements are treated as rest days and therefore receive the 200% rate. Statements such as “the company requires overtime approval” or “I stayed voluntarily” do not absolve employers of payment obligations, yet they can complicate evidence collection; consequently, it is vital to retain documentation of work assignments and approvals. Implementing alternative work‑time regimes such as a comprehensive‑hour calculation system or a flexible‑hour schedule requires prior authorization from labor authorities. Details on arbitration time limits appear in Section 8, Article 19.

If your total work experience across all employers is at least 1 year but under 10 years, you’re entitled to 5 days of annual leave per year. For 10–20 years of experience, it’s 10 days; for 20+ years, it’s 15 days. These totals continue to accumulate even after changing jobs. If your employer cannot arrange leave and you agree to forgo it, you’ll receive three times your daily wage for those days. Signing a “voluntary waiver of annual leave” form means you’ll only receive your regular salary thereafter.

Cost

There is no cost involved. Simply add up all the years you’ve worked at every employer; your social insurance records serve as proof. The main challenge is avoiding signing any form that states you “voluntarily waive annual leave.”

Benefit

Employees who have worked continuously for 12 months qualify for annual leave. The number of days is determined by total years of service across all employers. Specifically, 5 days apply to 1–10 years of experience, 10 days for 10–20 years, and 15 days for 20+ years. Statutory holidays and weekends do not count toward this total. If an employer genuinely cannot provide leave due to operational needs and you consent to forgoing it, you’ll receive 300% of your daily wage as compensation. This amount already includes your regular salary, so the extra payment equals 200% of your daily wage. Daily wage is calculated as monthly salary ÷ 21.75; monthly salary is the average of the previous 12 months’ earnings excluding overtime. New employees receive a pro‑rated amount based on days worked that year. Upon termination, unused leave is compensated proportionally, with no deductions for any leave already taken. Employers failing to provide leave or compensation face mandatory corrections; persistent non‑compliance results in an additional penalty equal to the original compensation amount (effective nationwide since 1 Jan 2008).

Note

Total years of service are cumulative across all employers, not limited to one company. Never base calculations solely on tenure at your current employer. Only when an employee “voluntarily and in writing waives leave” may the employer limit payment to regular wages; therefore, avoid signing such waivers. Employees taking 20+ days of personal leave without wage deductions also lose annual leave entitlement. Similarly, extended sick leave disqualifies workers: 2 months for under‑10‑year experience, 3 months for 10–20 years, and 4 months for 20+ years. Family‑visit leave, marriage or bereavement leave, maternity/paternity leave, and periods of work‑related injury recovery do not count toward annual leave.

For contracts lasting up to one year, the maximum probation period is one month. For contracts from one to three years, it is two months. For contracts exceeding three years, or open‑ended contracts, the maximum is six months. An employer may only place an employee on probation once; offering a second probation period after the employee has been regularized is illegal. During probation, wages must be no lower than the minimum wage for that position or 80% of the agreed regular wage, and they must also meet the local minimum wage standard.

Cost

Zero expense. Spend a few minutes before signing to verify that the contract’s stated term and probation length match the legal requirements.

Benefit

Under the law, contracts of more than three months but under one year may have a probation period of no more than one month; those from one to three years may have a maximum of two months; and contracts of three years or longer, as well as open‑ended contracts, may have a maximum of six months. Contracts with a term defined solely by completion of a specific task, or those lasting less than three months, may not include any probation period at all. An employer may stipulate only one probation period for any given employee. If a contract mentions a probation period but does not specify its length, that period is deemed invalid and the entire contract term applies. Probation wages must be at least 80% of the lowest comparable wage within the organization or 80% of the agreed regular wage, and they must also meet the local minimum wage. Should an employer set a probation period longer than permitted by law, it must compensate the employee for the excess time at the regular monthly wage rate. Termination during probation is only permissible under specific legal circumstances, and the employer must provide a valid reason to the employee (nationwide).

Note

Three common violations occur frequently. First, a one‑year contract may contain a three‑month probation period. Second, after an employee becomes regular, the employer may attempt to impose another probation period. Third, some employers claim “no social insurance during probation,” yet the obligation to enroll begins on the first day of work, regardless of probation status; details are provided in Section 12, Item 16. Being dismissed during probation does not mean no compensation; eligibility depends on whether the dismissal meets legal criteria. Unlawful termination entitles the employee to double the regular wage as stipulated in Item 6.

When a layoff occurs, the employer must pay severance compensation calculated as follows: one month’s salary for each full year of service; periods of six months or more but less than a full year count as a full year; periods of less than six months result in half a month’s salary. The monthly salary figure is the average over the 12 months prior to termination, including bonuses, allowances, and other benefits. If an employee’s monthly salary exceeds three times the local average monthly wage from the previous year, the cap is set at three times that average, and the maximum eligible service period is 12 years.

Cost

No cost at all. Just use a calculator — it takes about ten minutes.

Benefit

This is the statutory severance payment mandated by labor law when an employee is laid off — commonly referred to as “N.” The calculation rules are: “One month’s salary per full year of service… for periods of six months or more but less than a full year, the period counts as a full year; for periods under six months, half a month’s salary is paid.” Monthly salaries exceeding three times the local average are capped at three times that figure, and the maximum service duration considered is 12 years.

Note

The monthly salary referenced here is the average over the 12 months preceding termination, incorporating bonuses, allowances, and other benefits — not just base pay. This is precisely where employers often attempt to undervalue compensation.

If a company terminates your employment without giving 30 days’ written notice, it must pay you an additional month’s salary on top of the standard compensation. This is commonly referred to as “N+1.” When negotiating, make sure this extra month is listed separately so the company doesn’t include it in the base amount “N.”

Cost

No cost at all.

Benefit

Under labor law, when an employer ends a contract under this provision, there are two permissible options: either provide 30 days’ written notice to the employee, or pay an extra month’s salary and then terminate the contract. If the employer wants you to leave immediately, it must pay this additional month’s wage. This extra payment is known as “notice pay” and is calculated separately from “N.”

Note

Consequently, the typical outcome of a lawful termination under these circumstances is “N+1.” During negotiations, keep the base compensation “N” and the extra month distinct to prevent the employer from bundling them together.

If a company unlawfully terminates an employee, the compensation payable is twice the standard severance amount — commonly referred to as “2N.” Whether termination qualifies as unlawful depends on specific circumstances. It’s advisable to seek legal aid or consult an attorney first to determine whether negotiation with the employer or pursuing arbitration is the better course of action.

Cost

There is no direct cost involved. However, arbitration can take several months to resolve, and you must remain actively involved throughout this period without being able to drop the process midway.

Benefit

Under labor law, employers who unlawfully terminate or end employment contracts must pay compensation equal to twice the standard severance amount outlined in Article 47 of the law. This means first calculating the standard severance figure and then doubling it for payment to the employee.

Note

This is the commonly known “2N” compensation rule. Whether termination qualifies as unlawful hinges on particular facts and conditions. Seek legal counsel first; further guidance on next steps is provided in Section 7.

Signing a statement that you’re resigning voluntarily for personal reasons typically means you lose both severance pay and eligibility for unemployment benefits. Voluntary resignation isn’t covered under the circumstances that entitle workers to compensation, except in cases where the employer fails to pay wages or neglects social insurance contributions. There’s no need to sign immediately — take a night to think it over.

Cost

No monetary cost. The difficulty lies in resisting the pressure to sign on the spot.

Benefit

The Labor Contract Law specifies exactly which circumstances qualify workers for severance pay. Voluntary resignation doesn’t meet these criteria, unless the employer has committed statutory violations such as wage arrears or non-payment of social insurance. Signing a voluntary resignation form usually results in forfeiting both severance pay and unemployment benefits.

Note

Employers often claim, “Sign this first to start the process; we’ll arrange compensation separately.” Make sure such promises are written into the agreement before signing; otherwise, refuse to sign. Failing to sign on the same day carries no legal consequences — take time to decide calmly.

Once you return your computer and work account, you won’t be able to access any of your pay stubs, attendance records, contracts, social insurance documents, or chat logs again. When filing for labor arbitration, you’ll still need these materials to prove your wage amount and whether you worked overtime. What you save are documents related to your own employment; do not take any company source code, client lists, or technical documents with you.

Cost

No expense required. It takes about half an hour to save all these documents. The tricky part is remembering to do it before you leave.

Benefit

After returning your computer and account, you lose access to all these records. While arbitration proceedings may lean slightly in favor of the employer, you still need your own evidence to prove your wage level and overtime hours.

Note

Only documents related to your own employment should be saved. Do not take any company source code, client lists, or technical documentation with you; those are separate matters, as explained in Section 11.

When you sign a contract, the employer must truthfully describe any occupational hazards associated with the job, how to protect yourself, and what benefits you’re entitled to — there can be no concealment or deception. If such information is omitted, you have the right to refuse the job, and the employer cannot fire you for that reason. The employer must also arrange and pay for three occupational health examinations: before starting work, during employment, and upon leaving the job. If the pre‑termination examination is not performed, the employer cannot terminate or end your contract.

Cost

No cost involved. When signing the contract, read every clause under “Disclosure of Occupational Disease Hazards” carefully. Make sure to keep a copy of each health examination report for yourself. The main difficulty lies in having to ask questions and request documents in person.

Benefit

According to the Law on the Prevention and Control of Occupational Diseases, when drafting a labor contract the employer must disclose four key points: what occupational hazards the job may bring, what health consequences might arise, how to protect yourself, and what benefits you’ll receive. The statutory wording is “the employer shall truthfully inform the worker and include this information in the contract, without any concealment or deception.” Should the employer later assign you tasks not mentioned in the contract that involve occupational hazards, it must again provide full disclosure and negotiate any contract amendments. Failure to comply gives you the right to refuse such work, and the employer may not terminate the contract on that basis. The three required health examinations must be paid for by the employer, and you must receive a written confirmation of this expense. Workers who have not undergone the pre‑employment examination may not be assigned to hazardous duties; likewise, those with specific medical contraindications must not be placed in jobs they cannot safely perform. If any work‑related health damage is detected, the worker must be transferred to a suitable position. Importantly, “an employer may not terminate or end a labor contract with a worker who has not undergone a pre‑termination occupational health examination.” Upon leaving the job, you have the right to obtain a free, certified copy of your occupational health records; the employer must provide this promptly. These records are essential for any subsequent occupational disease diagnosis, and they must be secured before you leave. Claims related to occupational disease are treated as work‑related injuries; details can be found starting at item 12.

Note

During an interview, asking just three questions can help you gauge whether a company is legitimate: whether the job involves occupational hazards, whether these are mentioned in the contract, and who pays for the pre‑employment health check. If the interviewer cannot answer or suggests “just start working first,” proceed with caution. The requirement for a pre‑termination health examination is a crucial safeguard — without it, the employer cannot end your contract. This examination also serves as key evidence for any future occupational disease claim; the same applies to the health records copy you must obtain before leaving. Claims for occupational disease are handled as work‑related injuries, and the corresponding benefits are outlined from item 12 onward.

Pneumoconiosis, noise-induced hearing loss, and chemical eye burns are all listed as statutory occupational diseases. Once lung tissue or hearing is damaged, there is no treatment capable of restoring it. You have the right to know exactly what hazards exist at your workplace and to demand that your employer supply protective equipment and facilities. You may refuse any job that fails to provide these safeguards. Any attempt by your employer to cut your pay or terminate your contract in retaliation for exercising these rights is legally invalid.

Cost

No monetary cost. The real challenge is consistently wearing respirators, earplugs, and safety goggles, as well as refusing to perform tasks lacking adequate protection — this may lead coworkers to label you as “too picky.”

Benefit

As of August 1, 2025, the official list of occupational diseases comprises 12 main categories containing 135 distinct conditions, including four open-ended clauses. Pneumoconiosis ranks first among them, covering silicosis, coal worker’s pneumoconiosis, graphite pneumoconiosis, carbon black pneumoconiosis, asbestosis, talc pneumoconiosis, cement pneumoconiosis, mica pneumoconiosis, potter’s pneumoconiosis, aluminum pneumoconiosis, welder’s pneumoconiosis, and foundry worker’s pneumoconiosis, plus one additional open clause. Noise-induced hearing loss and blast-induced hearing loss fall under occupational ear, nose, throat, and oral diseases; chemical eye burns and photic keratitis are listed under occupational eye diseases. All these injuries are permanent — once damaged, lungs and hearing cannot be repaired. Four fundamental rights are legally guaranteed: first, the right to be informed about all occupational hazards present, their potential consequences, and required protective measures; second, the right to demand provision of compliant protective equipment and improved working conditions; third, the right to report, criticize, or file complaints against any violations of occupational health laws or practices endangering health; fourth, the right to refuse any directive ordering work without proper protective measures. Furthermore, any employer action — such as wage cuts, benefit reductions, or contract termination — taken solely because a worker exercised these lawful rights is legally void nationwide.

Note

Ensure you use respirators specifically rated for particulate filtration; ordinary gauze masks or disposable surgical masks offer no protection against dust. If your employer does not supply earplugs for noisy environments, purchasing them yourself is advisable, as hearing loss cannot be reversed. The belief that “working just two years to save money is safe” does not apply to pneumoconiosis — silicosis can manifest years after exposure ends and may worsen over time, making off-duty health checks essential (see Rule 9 of this section, which mandates three free occupational health examinations paid for by employers). The updated list also includes two new categories: occupational musculoskeletal disorders, specifically carpal tunnel syndrome affecting manufacturing workers performing repetitive wrist motions; and occupational mental and behavioral disorders, specifically post-traumatic stress disorder affecting police officers, medical personnel, and emergency responders involved in crisis response. Immediate first-aid measures for chemical splashes onto skin are detailed in item 13, clause 21.

Injuries that happen at work are considered work‑related injuries. Being hit while commuting — provided you bear no significant fault — also qualifies as a work‑injury. Without a formal work‑injury determination, however, you won’t receive medical coverage, wage replacement during recovery, or disability benefits. Employers must file the application within 30 days; if they fail to do so, you, your family, or a labor union may file it within one year.

Cost

There is no cost — just a trip to the social insurance authority. You’ll need three documents: a work‑injury determination application form, proof of employment, and a medical diagnosis certificate.

Benefit

Without a work‑injury determination, all related benefits disappear: medical care, wage continuation while you recover, and disability payments. If an employer misses the 30‑day deadline, it must pay all required benefits out of its own funds.

Note

The one‑year deadline is absolute — after that you can’t apply. The burden of proof rests with the employer: if it denies that an injury is work‑related, it must provide evidence to the contrary. Still, you should keep your own records — photos from the scene, coworkers’ contact info, medical records, and attendance logs. Article 16 lists three situations where injuries are not considered work‑related: intentional criminal acts, intoxication or drug use, and self‑inflicted harm or suicide. Article 15 also defines “deemed work‑injuries”: death from a sudden illness at work or within 48 hours after unsuccessful emergency treatment.

Hurrying to the office when you suddenly feel unwell won’t earn you any extra compensation. To be classified as a workplace injury, the incident must occur during working hours and at the workplace; if it happens on the way to work before you even arrive, it doesn’t qualify. Cases where medical treatment is delayed past 48 hours also don’t count. Those few extra minutes spent trying to meet the criteria can actually lower your chances of survival.

Cost

No cost at all.

Benefit

This rule states that a worker must suffer a sudden illness during working hours at their workplace, and then die within 48 hours despite medical efforts, to be deemed a workplace injury. Delaying medical care just to meet these conditions means sacrificing your own chance of survival for compensation that you might not even receive.

Note

Both conditions must be met: the illness must occur during working hours and at the workplace. It does not apply if the illness strikes on the way to work before reaching the office. If a worker falls ill at work, is taken home or to hospital, and dies within 48 hours despite treatment, this rule may still apply. What matters most is where the person was at the moment of illness, not where they ultimately die. Some short videos wrongly claim that “staying at work guarantees compensation”; in reality, those crucial first few minutes after falling ill — when prompt medical care is sought — are what truly determine the outcome. Additionally, the 48‑hour limit is strict: any case where treatment is delayed beyond this period does not qualify.

Even if your employer does not enroll you in workers’ compensation insurance, you are still entitled to all related benefits. Those benefits must then be paid in full by the employer, using the same coverage items and payment standards as if insurance had been purchased. Failure to enroll is penalized: the employer must retroactively pay premiums plus a daily late fee of 0.05%, and may face fines equal to 1–3 times the unpaid amount. The claim “the company can’t compensate you because it didn’t buy insurance” is simply untrue.

Cost

There’s no direct cost to you. However, if the employer refuses to comply, you’ll need to pursue arbitration or even litigation, which can take several months. The difficulty lies in having to stay actively involved throughout this lengthy process.

Benefit

Statutory rules clearly state that when an employer neglects to enroll an employee in workers’ compensation insurance, any resulting workplace injuries must be compensated by that employer itself, using identical coverage items and payment amounts mandated by law. In other words, the employer bears the entire financial burden without exception.

Note

“The company can’t pay compensation because it didn’t purchase workers’ compensation insurance” is one of the most common false statements encountered in such cases. While non‑enrollment brings penalties for the employer, it does not reduce your right to receive full compensation.

Once injuries have stabilized, a work capacity assessment can be done, and the resulting disability grade translates directly into compensation. One-time disability benefits are calculated based on the individual’s own salary: Grade 5 equals 18 months’ salary, Grade 6 equals 16 months’, Grade 7 equals 13 months’, Grade 8 equals 11 months’, Grade 9 equals 9 months’, and Grade 10 equals 7 months’. Before the assessment results are finalized, do not sign any “one-time settlement” agreements.

Cost

There is no monetary cost. However, completing the work capacity assessment process takes some time.

Benefit

One-time disability benefits are paid out as a lump sum, calculated based on the individual’s own salary and their disability grade. For Grade 5, this equals 18 months’ salary; for Grade 6, 16 months’; for Grade 7, 13 months’; for Grade 8, 11 months’; for Grade 9, 9 months’; and for Grade 10, 7 months’.

Note

Workers with Grades 5 and 6 retain their employment status and continue to receive disability allowances each month from their employer. For those with Grades 7 through 10, upon contract expiration or voluntary termination, two additional payments apply: a one-time work injury medical allowance paid by the fund, and a one-time disability employment allowance paid by the employer; exact amounts are set by provincial regulations. Before the assessment results are finalized, do not sign any “one-time settlement” agreements.

There are three distinct payments related to work-related deaths — don’t focus on just one of them. The funeral allowance equals six months of the average monthly wage of local workers from the previous year. The survivor’s pension is paid monthly based on the deceased worker’s wage: 40% goes to the spouse, while other eligible dependents each receive 30% of that wage. The one-time death benefit is a fixed amount nationwide: it equals 20 times the per capita disposable income of urban residents across China in the prior year.

Cost

No cost involved; only a set of administrative procedures are required.

Benefit

Three separate payments are provided for work-related deaths. First, the funeral allowance equals six months of the average monthly wage of workers in the relevant regional insurance pool. Second, the survivor’s pension is paid monthly at rates set relative to the deceased worker’s wage: 40% for the spouse, 30% for each other eligible dependent. Third, the one-time death benefit is a single nationwide amount equal to 20 times the per capita disposable income of urban residents in China from the previous year, with no regional variations. For deaths occurring in 2026, this benefit totals roughly 1.13 million yuan (1,130,040 yuan), calculated as 56,502 yuan — the prior year’s per capita disposable income for urban residents — multiplied by 20.

Note

The one-time death benefit is standardized nationwide, and its exact amount updates each year based on data released by China’s National Bureau of Statistics. When negotiating compensation, claims citing “lower local standards in our region” are not valid.

Employees who experience workplace bullying have a roughly 60% higher risk of developing heart disease or having a stroke, and this risk rises with the severity of the bullying. After several years, they are also about twice as likely to entertain suicidal thoughts compared to their peers. Being constantly insulted and mistreated is far from a minor inconvenience that can simply be “tolerated.”

Cost

There’s no monetary cost. However, it does take time to record details such as dates, witnesses, exact quotes from the abuser, and to keep original screenshots and emails. Legal proceedings like arbitration or lawsuits can last several months. Changing jobs is the most costly option; you must weigh these factors yourself.

Benefit

From a health perspective: three Swedish and Danish cohorts comprising 79,201 working adults aged 18–65 were studied over an average of 12.4 years. At baseline, none had cardiovascular disease; 9% reported having experienced workplace bullying in the previous year. Those who endured bullying faced a 59% higher risk of developing cardiovascular disease (coronary heart disease or cerebrovascular disease; HR 1.59, 95% CI 1.28–1.98). Individuals subjected to workplace violence faced a 25% higher risk (HR 1.25, 95% CI 1.12–1.40); both risks increased with the frequency of abuse. A Norwegian nationwide survey of 1,846 workers, followed over three rounds of testing spaced two to three years apart, found that bullied individuals were roughly twice as likely to develop suicidal thoughts (OR 2.05, 95% CI 1.08–3.89). Conversely, people with prior suicidal thoughts did not later become more prone to bullying. From a legal standpoint: China currently lacks specific legislation addressing “workplace bullying”; actions must be evaluated against existing laws. Employers found guilty of insults, corporal punishment, physical assault, unlawful searches, or unlawful detention of workers face administrative penalties and must compensate for any harm; criminal acts incur further legal consequences. If an employer uses violence or threats to compel work, employees may terminate their contracts immediately without notice and are entitled to financial compensation. Employers must also implement measures to prevent and curb sexual harassment by leveraging authority or hierarchical relationships; victims may seek civil redress from harassers. Labor arbitration cases are resolved within 45 days of acceptance, with a possible extension of 15 days for complex cases.

Note

This grade is assigned because the health data derive from observational studies rather than randomized controlled trials, and “bullying” was self-reported by participants. This guidance does not advocate quitting a job at the first sign of mistreatment; the personal cost of changing jobs must be considered. Four practical steps can be taken: first, begin documenting incidents immediately; refer to Section 8, Item 41 for guidance on recording audio evidence. Second, submit written complaints through official internal channels and retain proof of such submissions. Third, if physical assault, unlawful confinement, or public humiliation occurs, contact law enforcement. Fourth, if forced to leave due to unpaid wages or lack of social insurance contributions, follow Section 7 (“Do not voluntarily resign”) and Section 8 (“Preserve evidence prior to leaving”) of this chapter. For details on calculating compensation, see Section 4 (“Calculate your entitlements after layoffs”). Mere neglect, exclusion, or minor mistreatment rarely violate any specific statutes; in such cases, internal complaints, job transfers, or changing employers are the primary remedies. Arbitration proceedings may take up to 60 days, while civil lawsuits typically require at least six months; legal fees must be borne by the plaintiff. If the situation becomes unbearable, call 12356 as outlined in Section 1, Item 25.

Whether you were dismissed, the contract expired, or you resigned, the employer must give you a termination certificate when you leave and transfer your personnel file and social insurance within 15 days. The certificate must state contract term, separation date, position, and how many years you worked there. You need it for unemployment registration. If the employer refuses, labor authorities order correction and must compensate any loss they caused.

Cost

No cost. Ask in person before you go, or send a written message and keep proof you asked. The hard part is asking when relations are bad. If the employer stalls, complaints or arbitration can take weeks to months.

Benefit

The Labor Contract Law requires the employer to issue a certificate when the contract is terminated or ended. The rule does not depend on who initiated it — non-renewal, resignation, or dismissal all count. The employer must also complete personnel file and social insurance transfer within 15 days. The implementing regulations require four items on the certificate: contract term, date of termination or end, job position, and years of service at the unit. The Unemployment Insurance Regulations require laid-off workers to take the employer’s certificate to the social insurance agency promptly for unemployment registration. Unemployment benefits start from the date of unemployment registration. If the employer does not issue a written certificate, the labor administration orders correction. If you suffer loss, the employer must pay damages. The law also provides that a new employer who hires someone still bound to a former employer and causes loss to the former employer bears joint and several liability. The termination certificate is written proof that you and the former employer have ended the relationship (nationwide).

Note

The law does not tie issuing the certificate to completing handover; economic compensation is paid after handover is done. If the employer drags its feet, send one more written demand. If still no certificate, call 12333 or complain to labor inspection at the human resources bureau. Complaints are free; after a case is opened, investigation must finish within 60 working days, extendable 30 days for complex cases. To claim damages from the employer, use labor arbitration — also free — within one year. After acceptance, arbitration closes within 45 days, extendable 15 days. You must prove the loss yourself, for example delayed unemployment registration or a new employer refusing you for lack of proof. If you disagree with the award, go to court; ordinary first-instance procedure starts at six months. Labor dispute court fees are 10 yuan per case; attorney fees are not litigation costs and you pay yourself. The four required items do not include reason for leaving. If the certificate says “voluntary resignation for personal reasons” and that is false, object on the spot — see this section item 7 (do not sign voluntary resignation). How to claim unemployment insurance: Section 7, item 1.

One-time compensation from ending an employment relationship is tax-free up to three times the local prior-year average employee wage. Amounts above that are taxed on their own, not added to your annual comprehensive income. If the employer lumped the whole payment into monthly wages and withheld tax that way, ask the employer first, then call 12366 for the tax bureau.

Cost

No cost. Look up the local prior-year average employee wage, then spend a few minutes checking how the employer withheld tax. The individual income tax app shows line-by-line filing for each payment.

Benefit

A Ministry of Finance and State Taxation Administration circular states that one-time compensation income from terminating a labor relationship with an employer — including economic compensation, living allowances, and other subsidies — is exempt from individual income tax within three times the local prior-year average employee wage. The portion above three times is not merged into annual comprehensive income; it is taxed separately under the comprehensive income rate table. That table taxes annual amounts up to 36,000 yuan at 3%, 36,000 to 144,000 yuan at 10%, and higher brackets up to 45%. Example: if the local prior-year average employee wage is 100,000 yuan, three times is 300,000 yuan. On 360,000 yuan compensation, only the 60,000 yuan excess is taxed — 3,480 yuan. If the full 360,000 yuan were taxed under that table, tax would be 58,080 yuan. Effective 1 January 2019; no end date stated (nationwide).

Note

The same circular sets an end date for the annual one-time bonus policy, later extended to 31 December 2027. The termination-compensation rule has no end date and does not follow the bonus extension. The circular names economic compensation, living allowances, and other subsidies; it does not separately name payment in lieu of notice or damages for unlawful termination. If unsure whether those count, call 12366 locally. Which figure counts as “local prior-year average employee wage” is determined by the local tax bureau. How compensation is calculated: this section item 4 (calculate N when laid off), item 5 (no 30-day notice), item 6 (damages for unlawful termination). One-time subsidies for early retirement or internal retirement use a different formula and are not covered here.

When relocating between cities for employment, both your pension and employee medical insurance accounts can follow you, allowing cumulative contribution years to stack without restarting. Before reaching statutory retirement age, you cannot cancel your pension insurance to cash out funds. If medical insurance contributions lapse for more than 3 months, you may face a waiting period of up to 6 months before medical expenses can be reimbursed in the new location, so avoid extended gaps between jobs.

Cost

Zero monetary cost. After enrolling and contributing in the new location, submit a transfer application through your new employer or independently, either online or at a public administrative service desk. Pension transfers take several dozen working days end-to-end, while medical insurance transfers require approximately 15 working days.

Benefit

The Social Insurance Law stipulates that when workers relocate across pooling regions for employment, their basic pension insurance accounts follow them, and contribution years accumulate cumulatively. The same rule applies to employee basic medical insurance: coverage accounts transfer and contribution durations accumulate continuously. At retirement, pensions are calculated segmented by jurisdiction and disbursed through a unified payout channel. Interprovincial pension transfers follow State Council interim procedures: prior to reaching statutory pension entitlement age, pension relations cannot be terminated or refunded, and personal accounts cannot be withdrawn early. The entire principal and accrued interest of the employee's personal account are transferred. For the employer pooling portion, funds equal to 12% of the employee's actual wage base for each year after 1998 are transferred to the incoming jurisdiction. Pension disbursements are calculated based on historical wage bases, cumulative contribution years, and local average wages at the final disbursement jurisdiction. Procedurally, once enrolled and contributing in the new city, submit an application to the receiving social insurance agency. The receiving office audits within 15 working days; upon receipt of the acceptance notice, the transferring office executes the transfer within 15 working days; and the receiving office finalizes enrollment within 15 working days of fund arrival. Under State Council "Inter-Provincial Government Services" guidelines, interprovincial transfers are processed entirely through the receiving city's portal without requiring in-person visits to your former city. For employee medical insurance, former coverage must be paused before the new account is activated to initiate transfer. Applications can be submitted online via the National Healthcare Security Administration service platform (fuwu.nhsa.gov.cn) or at local service windows. Outgoing transfer completes within 10 working days, incoming enrollment within 5 working days, and personal account balances transfer in full. If the contribution gap before transfer is within 3 months, retroactive payment waives any waiting period, allowing immediate reimbursement in the month of contribution as well as retroactive reimbursement for the gap period. If the contribution gap exceeds 3 months, local waiting periods apply, capped in principle at 6 months (nationwide).

Note

If moving across provincial borders to a non-registered household (hukou) province when a male worker reaches age 50 or a female worker reaches age 40, original pension relations remain anchored at the previous location; the new locality opens a temporary contribution account recording all unit and personal payments. The statutory priority rule determining final retirement payout location is as follows: if anchored in the household registration province, benefits are drawn at the household locality; if residing elsewhere and cumulative contributions at the active account exceed 10 years, benefits are drawn locally; if under 10 years, relations roll back to the most recent jurisdiction where contributions exceeded 10 years; if no locality reaches 10 years, all funds aggregate to the household registration province. Pension benefit formulas use the local average wage of the final payout jurisdiction. Intraprovincial intercity transfer guidelines are established by individual provincial governments. Individuals already receiving monthly pensions cannot transfer accounts. For calculating contribution gaps and eligibility prerequisites, see Chapter 7, Rule 18 (lapsed social security). For flexible employment self-contributions, see Chapter 31, Rule 11.

If an employer fails to sign a written employment contract after one month of work, they must pay you double monthly wages starting from the second month, up to a maximum of 11 additional months. If a full year passes without a written contract, you are legally deemed to have an open-ended (permanent) employment contract. If the company presents a contract to sign, do not deliberately refuse to sign, as intentional employee obstruction forfeits double wages.

Cost

Zero financial outlay. Preserve evidence of active employment: payroll bank deposits, attendance clock-ins, corporate badges, and work-related chat records. If the employer refuses, file for labor arbitration (free of charge, mandated to conclude within 45 days, extendable by 15 days). Appeals proceed to court; first-instance regular civil procedure takes at least 6 months with personal legal fees. The difficulty is asserting legal claims while remaining employed at the company.

Benefit

The Labor Contract Law mandates that employers execute written labor contracts upon establishing employment relationships; if not signed on the first day, contracts must be executed within one month of employment commencement. Where an employer fails to execute a written contract after more than one month but less than one year, it must pay the employee twice their monthly wage. Implementing regulations clarify the exact calculation period: starting on the day following the completion of the first month and ending on the day preceding retroactive contract execution. Where one year has elapsed without a written contract, double wages are payable up to the day before the one-year mark (capped at 11 months of double wages); from the one-year mark onward, an open-ended employment contract is legally deemed established, and the employer must retroactively execute the contract immediately. Under Supreme People's Court judicial interpretations effective September 2025, double wages are calculated monthly (or by actual working days for partial months); employers are exempt from double wages only if they prove non-execution was caused by force majeure or the employee's intentional refusal/gross negligence. If an employee refuses to sign upon written notice during the first month, the employer may terminate employment in writing with zero severance, paying only accrued wages for days worked. Once an open-ended contract is legally established, subsequent claims for double wages are not supported.

Note

Statutory limitations: under Beijing judicial standards, claims for double wage differentials are subject to a 1-year arbitration statute of limitations, calculated backward by days from the date of application; delaying claims reduces recoverable months. Apply for arbitration promptly while employed or upon departure. If retroactively executing a contract, backdating the effective date to your first day generally extinguishes double-wage claims unless you prove signature under duress. Employer compliance requirements for hiring within the first month are detailed in Chapter 12, Rule 16.

If an employer fails to pay social insurance or pays under an illegally reduced wage base, you can lodge a labor complaint mandating back-payments plus daily late fees. You can also terminate your labor contract in writing and demand statutory severance (N). Your resignation notice must explicitly cite the employer's failure to pay statutory social security; resigning for "personal reasons" forfeits all severance. Agreements where employees "voluntarily waive social insurance" are legally null and void.

Cost

Zero financial fee. Audit contribution history via municipal social security apps and save official statement PDFs. To compel back-payments, file an administrative complaint via the 12333 hotline or local labor inspection offices. To claim statutory severance, initiate labor arbitration (free of charge, 45-day statutory timeline). The difficulty is securing subsequent employment income before resigning.

Benefit

The Social Insurance Law mandates that employers register, declare, and pay full social insurance contributions on time, prohibiting delays, reductions, or exemptions absent statutory force majeure. If an employer infringes social security rights, employees can demand administrative enforcement from social insurance administrative authorities or collection agencies. Unpaid contributions trigger mandatory cure orders, plus daily late surcharges of 0.05% (5/10,000) from the date of default; failure to rectify within statutory deadlines incurs fines between 1 and 3 times the overdue amount. Labor security inspection bureaus are mandated to conclude investigations within 60 working days (extendable by 30 days for complex matters). Under Article 38 of the Labor Contract Law, if an employer fails to pay social insurance premiums according to law, the employee may terminate the labor contract immediately, and the employer must pay statutory economic compensation (severance). Conversely, resigning with 30 days' advance notice for personal reasons entitles you to zero severance; the written notice must explicitly cite statutory non-compliance. Supreme People's Court judicial interpretations effective September 2025 affirm: agreements between employers and employees waiving social security contributions, or unilateral employee waiver pledges, are legally null and void. Lawsuits demanding statutory severance based on employer social security delinquency shall be supported. If an employer fails to establish social insurance and the social insurance agency cannot process retroactive contributions, causing loss of insurance benefits, employees can sue the employer for consequential damages in labor arbitration.

Note

To compel historical back-payments, utilize administrative labor inspection complaints rather than arbitration: judicial consensus holds that direct orders for social security back-payments fall under administrative jurisdiction. Act within statutory enforcement deadlines: labor violations not reported within 2 years are barred from investigation, though ongoing contribution arrears calculate the 2-year window from the date defaults terminate. Underreporting contribution wage bases triggers varying judicial standards: Beijing courts recognize non-compliance only where zero accounts were established in the preceding year or entire statutory insurance tiers were omitted; consult local arbitration tribunals. If an employer previously paid cash allowances in lieu of insurance and subsequently completes retroactive social security payments, it can claw back cash allowances. Workplace injuries occurring without statutory work injury insurance are covered in Chapter 19, Rule 13. Bridging social security lapses is covered in Chapter 7, Rule 18.

Contract clauses stating that "resigning early requires paying penalties" are legally void with only two statutory exceptions: where the employer funded specialized technical training under a service commitment, or under a valid non-compete agreement. Even under specialized training agreements, penalties cannot exceed the actual training expenses and must be amortized against completed service years.

Cost

Zero financial outlay. Review your employment contract, specialized training covenants, and non-compete agreements against statutory provisions. If the employer unlawfully docks wages to offset purported liquidated damages, file for labor arbitration (free of charge, 45-day statutory timeline).

Benefit

The Labor Contract Law strictly provides that apart from specialized technical training service periods and non-compete restrictions, employers are legally prohibited from stipulating liquidated damages against employees. Under the first exception, where an employer provides specialized funds for professional technical training, it may agree on a service term commitment. If the employee breaches the commitment by leaving early, liquidated damages cannot exceed the total training expenses incurred by the employer, and actual damages cannot exceed the pro-rata portion amortized over the unserved remainder of the agreed service term (e.g. on 30,000 RMB training with a 3-year term, resigning after 2 years caps damages at 10,000 RMB). Training expenses must be substantiated by official payment vouchers, invoices, and direct travel receipts. Furthermore, if the employee terminates the contract due to employer fault (such as unpaid wages or non-payment of social insurance), the employee is not liable for service-period liquidated damages. The second exception is non-compete covenants (see Chapter 11, Rule 12). Clauses exempting employers from statutory responsibilities or depriving employees of basic statutory rights are legally null and void.

Note

Inability to levy contractual liquidated damages does not mean an employee is immune from tort liability: leaving without 30 days' advance written notice or leaking trade secrets that causes verifiable direct economic losses makes the employee liable for compensatory damages, but the employer bears the evidentiary burden of proving actual losses. Where an employer provided extraordinary benefits like municipal household registration (Hukou) tied to a service period and the employee departs early, courts may award compensatory damages based on actual employer loss, fault, and fulfilled service duration, even while striking down punitive liquidated damages clauses. If an employee is terminated for gross misconduct or criminal acts, service-period liquidated damages remain payable. Recovering illegally docked wages is covered in Chapter 7, Rule 2. Benefit is categorized as Moderate.

Modifying job roles or compensation constitutes an amendment to the employment contract, requiring mutual agreement in writing. However, if you remain silent and work under the modified role or reduced salary for over one month, courts legally treat your conduct as tacit acceptance and will reject subsequent claims that the modification was invalid. Object in writing immediately upon notice.

Cost

Zero financial cost. Immediately upon receiving demotion or salary cut notices, dispatch a formal written objection via company email or WeChat, preserving screenshots. The difficulty is withstanding face-to-face workplace friction while remaining on the job. If the employer terminates you or unlawfully docks wages, initiate labor arbitration (free of charge, 45-day statutory timeline).

Benefit

Under the Labor Contract Law, employment contracts can only be modified if employer and employee reach consensus through negotiation, and amendments must be executed in written form. However, Supreme People's Court judicial interpretations establish a critical exception: where parties orally agree to modify a labor contract and the employee actually performs under the modified terms for more than one month, the modification is legally binding. Courts will not support an employee's subsequent claim that the change was invalid due to lack of written form, provided the modified terms do not violate mandatory laws or public order. Judicial standards issued by Beijing High Court clarify employer management discretion: where contracts do not specify a precise job role, employers may reasonably adjust positions based on legitimate operational needs, evaluated against four criteria: operational necessity, legitimate corporate purpose, employee competency match, and preservation of salary/benefits. Where contracts explicitly define the position without unilateral reassignment clauses, unilateral demotion constitutes contractual breach, requiring back-pay of wage differentials benchmarked against the original role. Broad work location stipulations such as "Nationwide" or "Beijing Municipality" are deemed ambiguous, benchmarking statutory location to where the employee actually reported to work; employers cannot alter work locations without justifiable cause. If an employer fails to pay agreed wages in full and on time, employees can terminate the contract and claim statutory severance.

Note

Graded Evidence Grade B because "tacit acceptance after one month" is derived from Judicial Interpretation Article 43 and regional judicial guidelines rather than express statutory wording. After submitting a written objection, continue reporting to work while explicitly stating that attendance is under protest; completely refusing to report to work risks dismissal for job abandonment. If the demotion is subsequently adjudicated unlawful, dismissal constitutes illegal termination subject to double statutory severance (2N, Chapter 19, Rule 6); if the transfer is deemed reasonable, severance is forfeited. If major objective conditions change and parties fail to agree on modifications, employers may terminate contracts with 30 days' advance notice or 1 month's salary in lieu of notice (N+1, Chapter 19, Rule 5). Recovering docked wages is covered in Chapter 7, Rule 2. Benefit is categorized as Moderate.

As a dispatched agency worker, your employment contract is signed with the labor dispatch agency, but the host company where you work daily shares statutory legal duties. Your wages must be calculated under the identical compensation and incentive structure as direct permanent employees in matching roles. If you suffer damages or injury at the host company, both companies are jointly and severally liable—you can pursue either or both for 100% of compensation. Between client assignments, the agency must pay you monthly statutory minimum wage.

Cost

Zero financial cost. Check your employment contract to verify which corporate entity is stamped as your legal employer. The dispatch agency is legally obligated to disclose the terms of the commercial dispatch agreement. If disputes arise, file for labor arbitration (free of charge, 45-day statutory timeline).

Benefit

The Labor Contract Law provides that the labor dispatch agency is your statutory employer, mandated to execute fixed-term employment contracts of at least 2 years and pay monthly wages; during unassigned gaps between assignments, the agency must pay monthly wages based on local statutory minimum wage benchmarks. The dispatch agency must disclose dispatch agreements and cannot withhold compensation paid by the host company; neither firm may charge recruitment fees. Dispatched employees enjoy the statutory right to equal pay for equal work: host companies must apply identical remuneration distribution methods for identical positions, or benchmark against local prevailing wages for comparable roles if no direct internal positions exist. Host companies must pay overtime, performance bonuses, and provide role-related welfare benefits without discrimination, adjusting wages normally during continuous assignments. Statutory dispatch is strictly restricted to temporary, auxiliary, or substitutable positions (temporary positions cannot exceed 6 months), and dispatched personnel cannot exceed 10% of total host enterprise workforce. Where host enterprises inflict harm on dispatched workers, the dispatch agency and host enterprise bear joint and several tort liability, meaning you can demand full compensation from either firm and name both as co-respondents in labor arbitration. If an occupational injury occurs at the host entity, the dispatch agency must file for work injury recognition and bear insurance liabilities, with the host company assisting investigations.

Note

"Equal pay for equal work" mandates applying the identical allocation formulas rather than guaranteeing identical net pay regardless of tenure. If a host company returns you and the dispatch agency proposes new assignments with reduced terms, you may decline and the agency cannot terminate your contract on that basis. Statutory severance upon lawful contract termination is calculated as detailed in Chapter 19, Rule 4. If injured on duty at a host company, demand that the agency file for statutory work injury recognition, or file independently if they refuse (Chapter 19, Rule 11). Recovering unpaid wages is covered in Chapter 7, Rule 2. Benefit is categorized as Moderate.