What are the types of employment agreements we can offer? (e.g., fixed-term, indefinite, project-based)

We can support project-based, fixed-term, and indefinite employment agreements in China. However, we are unable to offer more than two back-to-back fixed-term employment agreements as Chinese law requires that an employment agreement following two back-to-back fixed-term employment agreements must be for an indefinite term.

Can we recognize seniority in China?

We may be able to recognize seniority by stating in the employment agreement that we will deem the supported employee’s start date as the date they commenced work with your company.

Can we include benefits in the employment agreements?

Yes, we can include benefits in generic terms in the employment agreement (e.g., supplemental medical insurance will be provided). Specific terms, however, should be provided separately.

Can we add variable compensation to the employment agreement? 

Yes, bonuses and variable compensation can be included according to the language you provide. For commissions and bonuses, we will typically use our Variable Compensation Agreement to outline the performance or metrics that your supported employee needs to meet to be eligible to receive payment. 

If we proceed with a Variable Compensation Agreement, we recommend that this be extended to your supported employee at a later date, after the employment agreement is signed, which will help expedite onboarding. In this scenario, we ask that you have a conversation with your supported employee as they may refuse to sign the employment agreement without having the Variable Compensation Agreement in their hand. We also need to receive your updated variable compensation plan at the end of each year or when it expires.