From 1 July 2025, Shanghai raised its monthly minimum wage from RMB 2,690 (£288) to RMB 2,740 (£294), a relatively conservative increase of less than 2%. The city’s hourly minimum wage also climbed from RMB 24 (£2.57) to RMB 25 (£2.68). While Shanghai retains the highest minimum wage in the country, the small increment marks its lowest annual increase in over a decade — signalling a broader strategic shift in China’s approach to wage setting.

The restrained increase comes at a time when many Chinese cities are weighing the need to support workers against mounting pressure on businesses. For low-income workers in the city, the additional RMB 50 (£5.36) a month may be welcome but is unlikely to keep pace with rising costs for essentials like rent, transport and food. Meanwhile, employers — particularly in the private sector and among SMEs — have been wary of sharper increases that could hit hiring and operating margins.

Shanghai’s move follows a pattern seen in other economically advanced parts of China, such as Beijing, Shenzhen and Guangdong, where minimum wage growth has slowed in recent years. Beijing now has the country’s highest hourly minimum wage at RMB 26.4 (£2.83), while Shenzhen and Guangdong follow closely behind Shanghai with monthly minimum wages of RMB 2,520 (£270) and RMB 2,500 (£267) respectively. Coastal cities continue to lead the pack, but the difference with other regions is narrowing as inland provinces roll out more substantial hikes.

China allows each of its 31 provincial-level regions to set their own wage levels, leading to wide disparities. While most now have minimum monthly wages above RMB 2,000 (£214), some less developed provinces such as Hunan and Liaoning still sit closer to RMB 1,700 (£182). Regional authorities are required by law to review wages at least every two to three years, but increases are not guaranteed. Shanghai skipped adjustments altogether in both 2022 and 2024, reflecting the uncertain post-Covid economic environment and the government’s cautious fiscal outlook.

The wider context for these adjustments is China’s drive towards “common prosperity”, a national policy ambition aimed at reducing inequality and spreading the benefits of growth more evenly. While minimum wage rises are just one part of this broader agenda, they remain a critical lever for supporting working-class incomes and boosting domestic consumption.

Still, policymakers are walking a tightrope. Labour-intensive industries such as manufacturing, retail and logistics remain sensitive to wage increases, particularly in regions where businesses already face thin margins. Some firms may respond by relocating operations to lower-cost inland areas, or by investing in automation. Others may reduce hiring or move workers to informal, lower-paid roles not protected by minimum wage regulations.

There is also a generational and demographic dimension. Migrant workers and young people are disproportionately represented in low-wage and part-time employment, and thus stand to benefit from wage increases, but they are also most at risk if businesses trim staff to offset higher costs.

Shanghai’s modest wage rise this year suggests a preference for gradualism. The increase was likely designed to signal continued government support for workers, without destabilising local businesses or contributing to inflation. Analysts expect other cities to follow similar trajectories: small, measured increases tied closely to local economic indicators such as productivity growth, employment rates and cost-of-living data.

With China’s economy facing slower growth, soft domestic demand and ongoing global trade pressures, wage-setting will remain a key balancing act for local and national authorities. The 2025 update may be modest on paper, but it offers insight into how China is managing its transition from high-growth industrial powerhouse to a more service-led, consumption-driven economy.

For now, Shanghai leads the country in both pay and prudence. The rest of China is watching closely.

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Drawing on the combined insights of experts from the China-Britain Business Council (CBBC) and Yingke London, this guide explores the key considerations for hiring in China, from choosing the right city and recruitment channels to navigating contracts, compliance and employment law.

Location: Where and How to Hire

When it comes to recruitment in China, geography is everything. Each region offers a distinct ecosystem of talent, industry focus, and cost. Tier-1 cities such as Beijing and Shanghai are obvious choices, offering access to top-tier professionals, international schools, and extensive infrastructure – but at a premium. Beijing serves as the political and R&D hub, which is particularly attractive for sectors like biotech and AI, while Shanghai thrives in finance, trade, and international business, boasting a bilingual workforce and global outlook.

Venture south, and cities like Guangzhou and Shenzhen (part of the Greater Bay Area) lead the way in manufacturing and tech innovation. Shenzhen, in particular, has earned the  reputation as China’s Silicon Valley, brimming with specialists in AI and hardware. “Shenzhen has a large pool of tech talent as its booming tech industry – from AI to hardware – draws them in,” notes Anne Zheng, CBBC’s Service Manager.

Tier-2 cities such as Chengdu and Hangzhou offer a different value proposition such as lower living costs, robust digital economies, and increasing numbers of young, educated professionals. As CBBC HR Director Ariana Zhang points out, “Cities in China are tiered. Tier one like Beijing and Shanghai are well known, but tier two such as Chengdu and Hangzhou also attract foreign firms, each with unique perks.”

Choosing the right city also informs your recruitment strategy. Online job portals such as 51job, Zhaopin, and Liepin are widely used for mid-level roles and offer cost-effective reach. However, foreign firms without a local business licence may find these platforms tricky to navigate independently. “Posting job ads on portals like 51job is cost-effective, but foreign firms without a local license need a facilitator like CBBC to navigate regulations,” says Ariana Zhang.

For senior or specialist hires, international or local executive search firms (e.g., Korn Ferry, Michael Page) are popular, though they typically charge 20-30% of the successful candidate’s first-year salary. Meanwhile, WeChat remains a useful tool for employer branding, and internal referrals can be effective once your team reaches scale.

CBBC often supports British companies through the full interview process – from screening CVs and testing English fluency to hosting in-person interviews and running background checks. Ariana Zhang shares one method: “We ask candidates to do a short English presentation to confirm their skills. A local partner like CBBC helps verify details that are hard to assess remotely.”

Contracts and Compliance: Getting Enrolment Right

Once you’ve found the right people, it is essential to formalise employment relationships in line with Chinese labour law. Written contracts must be issued within one month of employment starting. Most new hires begin on fixed-term contracts (typically 1-3 years), with probation periods determined by contract length. After two renewals or 10 years of service, open-ended contracts become mandatory – a development that can significantly impact dismissal flexibility.

“The labour law tends to protect the individual’s interest more, making it difficult for employers to cancel open-ended contracts,” reminds Sandra Xiang, a legal expert at Yingke London.

Alternative models, such as labour dispatch contracts, can be used for temporary roles or for foreign representative offices, but come with their own restrictions and are best suited for short-term staffing.

Onboarding, too, should not be overlooked. An effective staff handbook which is tailored to Chinese norms and translated accordingly, helps avoid confusion around entitlements such as sick leave, overtime, and public holidays. GDPR and data protection training must also be factored in. “Some policies differ in China – like public holidays, sick leave, and overtime pay. A clear handbook avoids misunderstandings,” says Anne Zheng.

Understanding Employment Models: EOR vs. Entity Setup

For companies looking to build a long-term presence in China, establishing a legal entity allows for full control over hiring and operations. However, this comes with administrative overheads and compliance responsibilities. From anti-discrimination clauses in job adverts to mandatory social insurance contributions, the legal landscape is rigorous. As Sandra Xiang explains, “Job postings must avoid discrimination. For instance, a company previously rejected a qualified female candidate, which led to fines and a public apology.”

Alternatively, an Employer of Record (EOR) model offers a nimble route into the market. In this arrangement, a third-party provider officially employs your staff while you manage their day-to-day work. It is a helpful interim solution for firms not ready to establish a local entity. “EOR providers handle compliance, but firms must clarify it’s a service relationship – not employment – to avoid joint liability,” Sandra notes.

Planning for Success

Hiring in China is not just about ticking boxes – it is about understanding the cultural, legal, and economic dynamics that shape the workforce. Tier-1 cities offer deep talent pools but come at a cost, while Tier-2 cities present rising opportunities for cost-effective growth. Using the right job platforms and working with local partners makes the process smoother and more effective. Above all, compliance – from contracts to onboarding policies – is non-negotiable.

As Anne Zheng summarises: “Understanding China’s unique hiring practices is crucial. Local support, like CBBC’s Launchpad, simplifies the process.”

To explore tailored support for hiring in China, contact the CBBC team at enquiries@cbbc.org

About the Authors

Anne Zheng is Service Manager at CBBC and leads the Launchpad programme, helping British companies establish operations in China.
Ariana Zhang is CBBC’s HR Director and an expert on recruitment and employment strategies in China.
Sandra Xiang is a legal advisor at Yingke London specialising in Chinese labour and employment law.

The post How to Hire and Build a Team in China appeared first on Focus - China Britain Business Council.

China’s labour framework and the underlying HR complications impact foreign investments in the local economy. Finding and hiring staff in China is a delicate and complex process, especially for foreign SMEs, which are less likely to look at putting in place a legal or HR in-house team of counsels, especially in the start-up phase.

Can you hire staff in China from overseas?

Foreign entities located overseas are not allowed to directly hire employees in China, so UK companies indeed need to establish a representative office or a subsidiary in China. The most popular option for foreign companies is a wholly foreign-owned enterprise (WFOE). It’s worth noting that whenever entity incorporation seems like a step too far for an initial presence in China, UK companies can engage a so-called “employer of records,” i.e., a licensed provider that will hire employees under its name in exchange for a fee calculated on their salary’s total company cost.

Best practices for recruitment in China

Global headhunters have a strong presence in the Chinese market but are usually only engaged for middle to senior and high-level management positions given their databases and the fees involved (usually 20% of the candidate’s yearly gross). Companies usually dedicate in-house recruiters to managing online HR platforms (Job.cn, Zhaopin.com, 51job, etc.), where candidates and job-seekers directly upload their CVs and apply for job postings. Recently, social media channels and apps (especially WeChat official accounts) have created a direct link between employers and candidates, especially for companies in the consumer, luxury and fashion industries, or those that are well known in their sector. 

What you need to know about Chinese employment contracts 

Firstly, companies should note that written employment contracts must be in China’s official language: Mandarin. According to the provisions of Article 19 of China’s Labor Law, these are the terms to be included in employment contracts:

• Duration and type
• Description of duties with related protection and conditions
• Remuneration and benefits
• Discipline and conditions for termination
• Liabilities for breach of the employment contract.

Paying compulsory provident funds 

China’s wages are coupled with compulsory provident funds (five main categories), a government-run housing fund for rent and mortgage benefits, and individual income tax declaration liabilities, representing an additional burden on the employer’s monthly declarations. Social contributions for work-related injuries, pensions, maternity leave, unemployment, and medical insurance provided by the state are also capped depending on the previous year’s average salary published every summer by each municipality.

The hidden costs of hiring procedures

Training and induction programmes are usually expected by candidates, especially the youngest generation, who have more detailed expectations for their work commitments. Employers wishing to implement non-compete clauses should budget for the related remuneration that becomes a must when these are put into use. The minimum wage connected to non-competes is usually 30% of the employee’s monthly salary but candidates are free to negotiate that amount up to their liking and can’t be forced into similar obligations.

China’s evolving working culture 

Since the appearance of unicorn tech companies and internet giants, China has been noted for a culture of unpaid overtime that clashes with official regulations; under official Chinese law, employees can work a maximum 44-hour workweek and any work beyond that requires extra pay for overtime. There is a high turnover rate in the job market; candidates that change jobs after three to five years of work experience are seen as having a relatively reasonable job hopping rate but it can be much more frequent. It is worth noting that GenZers and young talents are more likely to frequently switch roles, but employers can combat this by providing a positive working culture and good advancement opportunities.

How do commissions and bonuses in China differ from the UK?

The majority of Chinese labour contracts are usually based on 12-month arrays with a clause for discretionary bonuses typically set in the months in the proximity of Lunar New Year festivities (January-February). Multinationals keep 13 months’ wages with performance bonuses and commission schemes on top, even though local regulations don’t prescribe fixed arrangements on this matter. The main difference is that 13th-month bonuses and the like are considered part of the employee’s salary and represent a fixed commitment from employers, whereas bonuses and commissions are discretionary.

Hurdles to recruitment by foreign companies

Foreign-invested enterprises should have two systems in place for recruitment: 1) background checks, including prior records of labour arbitration cases with other employers, and 2) mental health check-ups due to the fast pace of life and work in China’s major cities. Close attention should also be paid to candidates’ interpersonal relationships while handling tasks under pressure and their ability to integrate with existing teams as some companies may encounter highly educated Chinese returnees who are fluent in English but tend to feel easily disappointed with their careers versus their investment in studies abroad. As a general principle, the potential negative impact on the overall staff by candidates who have not been thoroughly committed and engaged outweighs issues arising from employees not skilled or trained for the set of tasks they’ll need to look after.

The regional divide in HR issues

In addition to the differences in the social insurance provident funds mentioned above, welfare policies such as sick leave, maternity leave and marriage leave differ from city to city. The overall process and regulations for terminating labour relations with employees also follow different precautionary measures and practices according to China’s local courts and arbitration committees, and companies should pay attention to these divides. Finally, foreign enterprises should implement internal SOPs for non-resident workers to apply for household registration and residence permit points in the municipality where they operate, as these create additional requirements for the payment of social security and the issuance of corresponding documents during the application process.

Letting go: The challenges of firing

The process of labour relationship terminations should be based on performance appraisals and individual business cases. HR teams will need to prepare different supporting documents for different cases, but severance pay should be put forward based on China’s Labor Law and its clauses on unilateral and mutually agreed termination. The usual set of causes ranges from dissatisfactory performance during probation, irregular or false attendance records, objective major changes in the company’s business outlook, and major disciplinary violations. National laws and regulations do provide for special labour protection and treatment for female employees during pregnancy and workers who have experienced labour-related injuries. In most cases, companies can avoid lawsuits and arbitration through severance and compensation packages, helping them to convey an employee exit without any repercussions on their main operation and enterprise credit.

This article is part of a series on exporting to China. See all the articles in the series below.

Part 1: How to conduct market research
Part 2: Protecting your trade mark
Part 3: How to choose the correct route to enter the China market
Part 4: The dos and don’ts of choosing a distributor
Part 5: How to find and hire staff in China

Call +44 (0)20 7802 2000 or email enquiries@cbbc.org now to find out how CBBC’s Launchpad service gets your company boots on the ground in China quickly and cost effectively.

The post Finding and hiring staff in China appeared first on Focus - China Britain Business Council.

So, what is the minimum wage in China in 2023? Currently, Shanghai has the highest monthly minimum wage among China’s 31 provinces (RMB 2,690/£303 per month) and Beijing has the highest hourly minimum wage (RMB 26.4/£2.97 per hour). Sixteen regions – Beijing, Tianjin, Hebei, Shanghai, Jiangsu, Zhejiang, Anhui, Fujian, Shandong, Henan, Hubei, Guangdong, Chongqing, Sichuan, and Shaanxi – have surpassed the RMB 2,000 (£225) mark in their monthly minimum wage standards. At the lowest end of the wage spectrum, Liaoning has the lowest monthly minimum wage level in China at RMB 1,420 (£160)

How does China determine minimum wages?

Minimum wage standards are determined by provincial governments, taking into consideration factors such as the minimum living costs of local employees and their dependents, the consumer price index of urban residents, social insurance premiums, and the local employment situation.

It should be noted that the minimum wage excludes things like overtime pay, allowances for night shifts or special working environments, and subsidies for meals, transportation and housing.

In most regions, China’s minimum wage standards do include the social insurance premiums and housing fund contributions paid by employees. In fact, it is possible for an employee’s take-home pay to be lower than the corresponding minimum wage standard. Only a few regions, such as Shanghai, clearly stipulate that their local minimum wage standards exclude social insurance premiums and housing fund contributions.

Local governments in China are generally required to update their minimum wages every few years but have the flexibility to adjust wages according to local conditions.

Most provinces set different classes of minimum wage levels for different areas depending on the given region’s level of development and cost of living. For example, a higher minimum wage class is established for the provincial capital and the most developed cities in the province, whereas smaller cities and rural areas fall under a lower wage class.

How do minimum wages impact labour costs in China?

As China’s economy moves up the value chain and makes the transition to innovation and services, most workers employed by foreign-invested enterprises already earn above the minimum wage. For example, workers in Shanghai made an average of RMB 10,338 (£1,164) per month through 2020 – nearly four times the local minimum wage.

Employer social insurance and housing fund obligations add around an additional 37% to employers’ labour costs on top of the employees’ gross salary.

For foreign investors, rising wages are an unavoidable feature of doing business in China. Yet when other factors like productivity, infrastructure, transportation costs and access to a massive domestic market are considered, China may still emerge as the more cost-efficient option compared to countries with lower statutory labour costs.

When comparing locations for foreign investment into China, minimum wages are a helpful barometer to gauge labour costs across different regions. From there, identifying industry-specific wage levels, availability of talent and access to regional incentives offer a more nuanced view of the labour costs within a given region.

For a full breakdown of minimum wages in China by province and city, see this article by China Briefing

A version of this article was first published by China Briefing, which is produced by Dezan Shira & Associates. 

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On May 9, 2019, the State Council issued guidelines encouraging local governments to start pilot childcare leave programmes within their jurisdictions. The policy was designed to provide more support for home-based childcare services, rather than expensive daycares.

In the period following, multiple regions began exploring the implementation of childcare leave, including the provinces of Guangdong, Fujian and Ningxia. At that time, however, employers were only encouraged to grant employees childcare leave until a child reached a certain age, and were not obliged to do so.

Then, China announced the three-child policy in May 2021 and updated its Population and Family Planning Law in August 2021. The Population and Family Planning Law says that the state supports the establishment of childcare leave where conditions permit. In the following months, this suggestion was translated into concrete local policies, as more and more provinces amended their population and family planning regulations and stipulated that both parents who lawfully have a child are entitled to a certain amount of paid childcare leave per year until their child reaches a certain age.

How long is childcare leave in China?

Childcare leave is managed by local governments. Therefore, each province has different regulations. As of December 2021, 20 provinces have amended their population and family planning regulations, of which 18 have set out the exact length of childcare leave.

Beijing and Shanghai both stipulate that each couple can enjoy five days’ childcare leave each year until their child reaches three years. Beijing further stated that the total amount of childcare leave a couple can take each year should be no more than 10 working days.

Some provinces offer longer childcare leave. Heilongjiang, Hebei, Jiangxi, Sichuan, Guizhou, Zhejiang, Tianjin, Ningxia, Henan, Hubei, and Guangdong all offer 10 days of childcare leave each year for couples with children under the age of three. Shanxi, Qinghai, and Gansu provinces give 15 days of childcare leave each year to couples with children under the age of three.

In other provinces, the revised family planning regulations have not yet been adopted, but some have published revised drafts to solicit public opinions. For example, Shaanxi plans for each parent to have no less than 30 days of childcare leave each year until their child reaches three years. Hainan plans to set up two options for childcare leave: employers are encouraged to give 10 days’ childcare leave to each parent per year until their child reaches three years, or to give one hour of childcare leave to either parent every day until the child reaches three years.

How is childcare leave in China implemented?

Childcare leave has been established, but details on how it will be implemented are yet to be clarified in most provinces.

Beijing and Shanghai have made it clear that annual childcare leave is not calculated by calendar years but in ‘anniversaries.’ For example, if a child was born on 19 December 2021, then 18 December 2022 will be the ‘anniversary’ marking the end of the year in which each parent is entitled to five days of childcare leave.

In Shanghai, childcare leave days are calculated according to the number of children an employee has. If the employee has two children both under three years old, then they will be entitled to 10 days of childcare leave for the year. Childcare leave can be taken over consecutively or on separate days and also stipulates that normal wages should be paid in full during childcare leave.

Companies operating in provinces where childcare leave has been established are advised to keep a close eye on further policy developments and to start considering amendments to their employee handbook to adapt to this new form of statutory leave.

A version of this article was first published by China Briefing, which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in China, Hong Kong, Vietnam, Singapore, India, and Russia. Readers may write to info@dezshira.com for more support.

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As the coronavirus outbreak continues, enterprises in China are experiencing enormous challenges in the management of employee relations. The nationwide implementation of epidemic prevention and control measures has exerted varying degrees of pressure on enterprises, affecting their production, operation and employment arrangements. Some employees cannot return to work, and others are not able to work to capacity. As the epidemic continues, some enterprises may suffer from a partial or complete labour surplus.

In response to these problems, state and local governments have issued a series of policies to encourage enterprises affected by the epidemic to adopt flexible employment arrangements (such as salary adjustment, work shift rearrangement, work hour reduction, and rest day rearrangement), with an aim to avoid or minimise layoffs.

If an enterprise still experiences serious difficulty after adopting flexible employment arrangements, it may have to find a way to deal with the redundancy, to minimize cost of labour. There are mainly two types of plans available: (1) suspend the enterprise’s operation while retaining the employment relationship with employees until operations are resumed, and (2) terminate the employment relationship with some or all employees. In this article, we describe each plan’s conditions, requirements, and practical points.

I. Suspending operations

The current laws and regulations do not provide a clear process or premise for the suspension of operations. Enterprises affected by the epidemic can consider suspending operations as the situation demands. There are, however, certain issues to watch for:

1.              There must be a proper reason for suspension, such as lack of need for production due to decreasing orders or an inability to operate due to traffic restrictions.

2.              An enterprise deciding to suspend operations must explain to employees, in writing, the reason for and length of the suspension, as well as tasks to be fulfilled and compensation standard during the suspension period. The enterprise must also hear the employees’ opinions and answer their questions.

3.              Compensation. For a suspension that is within one pay period, the enterprise must pay the rates stipulated in the employment contract. If the suspension lasts longer, the enterprise may pay based on the amount of work done according to a new rate agreed by both parties (but it cannot be lower than the local minimum rate). For employees without work, the enterprise should pay a living subsidy in accordance with local standards. In Shanghai, the subsidy must not be less than Shanghai’s minimum wage. In Jiangsu and Zhejiang, it should be no less than 80 percent of the local minimum wage.

4.              Though the law does not explicitly require enterprises to send any report to the labour and social security department in advance of a suspension, it is recommended that an enterprise communicate with its local labour and social security department in advance and operate under their guidance.

II. Planning a layoff

If the enterprise still suffers from a labour surplus and experiences a business crisis after taking the above-mentioned measures, a layoff may be inevitable. Under the law, an enterprise can consider the following plans to terminate some or all of its employees:

1.  Termination by mutual agreement

According to Article 36 of the PRC Labor Contract Law, an employment contract may be terminated in writing by the employer and employee’s mutual agreement. The agreement to terminate should contain the date of termination, amount of compensation, settled wages and expenses, and the employer’s disclaimers. An employer is advised to retain all written communications, records, and fully executed mutual termination agreements with its employees.

2.  Termination based on a major change in circumstance

Under the PRC Labor Contract Law, Article 40, Section 3, where there is a major change in circumstance rendering performance of an employment contract impossible, and the two parties fail to agree on an amendment, the employer may unilaterally terminate the contract. In the current epidemic, it is believed that if the epidemic has sufficient impact on an enterprise that it constitutes a major change in circumstance as recognised by common judicial practice, the employer can consider terminating its employees.

However, different local adjudication bodies adopt different standards in assessing what constitutes “a major change in circumstance rendering performance impossible.” Thus, employers must carefully assess whether the epidemic truly presents a serious obstacle to the performance of their employment contracts.

Two types of employees cannot be terminated based on a major change in circumstance: (1) employees that meet the requirements in Article 42 of the PRC Labor Contract Law (for example, female employees undergoing pregnancy, confinement or lactation), and (2) carriers, suspected carriers, and persons having been in close proximity to carriers of the novel coronavirus who are either quarantined or placed under medical observation, as well as employees who cannot work due to quarantine or other emergency measures implemented by the government (collectively referred to as “employees that are not terminable due to the epidemic.”)

3.   Mass Layoff

Under the PRC Labor Contract Law, Article 41, a qualified enterprise requiring a termination of (1) twenty or more employees, or (2) few than twenty but no less than 10 percent of the employer’s workers, may implement a mass layoff. But even with a mass layoff, the enterprise cannot terminate an employee whose termination is forbidden by law (including employees that are not terminable due to the epidemic (as defined above) and employees specified in Article 42 of the PRC Labor Contract Law).

An enterprise planning a mass layoff should first assess whether it meets all legal requirements for such a layoff. But since no uniform standard for determining whether an enterprise conforms to the four situations authorising a mass layoff is seen in today’s legal practice, a decision for mass layoff must be carefully evaluated on a case-by-case basis. In addition, an enterprise must satisfy the procedural requirements for a mass layoff, including giving the labour union or all its employees a 30-day advance notice to explain the situation, hearing the labour union or employees’ opinions, and reporting to the local human resource and social security department after seeking labour union and employees’ opinions.

4.  Ending employment due to dissolution

Article 44 of the PRC Labor Contract Law permits ending an employment contract when an employer decides to dissolve the company. An enterprise needing to close and dissolve as a result of the epidemic may end its contracts with the employees.

III.  Conclusion

Enterprises can reduce the cost of labour and stabilise employee relations by making full use of one or more flexible employment arrangement measures permitted and encouraged by the government. If, after taking these measures, an enterprise still needs to reduce the size of its workforce, it should formulate and implement appropriate redundancy plans to comply with the law and minimise labour disputes.

This article was written by Tracy Liu and Larry Lian of Jingtian Law firm

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