A China EOR to expand your business

East Asia is home to China, officially the People’s Republic of China. It is the most populous country in the world with a population of over 1.4 billion. China borders 14 countries, spans five time zones, and is the second-largest country in the world after Russia. It is the third or fourth-largest country in the world, with a territory of around 9.6 million square kilometers (3,700,000 square miles). In the country, there are two Special Administrative Regions, four municipalities, five autonomous regions, and 23 provinces (Hong Kong and Macau). Shanghai is the largest city, whereas Beijing is the nation’s capital.

In the prosperous Yellow River region of the North China Plain, one of the world’s first civilizations, China, emerged. China was one of the most powerful economies in the world from the first through the eighteenth century. Since the semi-legendary Xia dynasty in the 21st century BCE, China’s political system has been based on dynasties, or absolute hereditary monarchy. 

Since then, China has expanded, split, and reunited several times. In the third century BCE, the Qin united central China and established the first Chinese empire. Some of the most advanced technologies of the time, such as papermaking and the compass, as well as improvements in agriculture and medicine, were developed during the Han dynasty (206 BCE to 220 CE).

Gunpowder and movable type were added to the Four Great Inventions during the Tang and Northern Song dynasties (618–1127). Tang culture spread across Asia as the new Silk Road drew traders from as far away as Mesopotamia and the Horn of Africa.

In the nineteenth century, the Qing dynasty—ultimate China’s dynasty and the basis of modern China—suffered enormous losses at the hands of the Western empire.

An Employer of Record China: Some nuances

A Chinese subsidiary must be established using the traditional method. However, with the help of our service, you may begin business activities in China right away, saving both time and money. You will retain complete operational control over their work, while INS Global will be in charge of recruiting people on your behalf. They would thus be our local payroll staff, fully compliant, and working on your behalf.

Leave categories

Unpaid time off

Measurement of paid time off is based on the length of work:

If you’ve been employed less than a year, you have no right to quit.

Employees with one to ten years of service are eligible for five days of paid leave.

10 days of unpaid time off after 10–20 years of employment

15 days of paid leave are yours after 20 years of service.

Holidays in public

There are seven national holidays, with additional days off in certain nations.

Unwell days

The amount of pay for sick days varies with service length:

Six months of sick time:

fewer than two years at the job: 60 % of the typical hourly wage

70% of daily earnings after 2-4 years of employment

4–6 years of professional experience 80 percent of the typical hourly wage

With 6 to 8 years of experience, the hourly wage is 90% higher.

You are eligible for 100% of your daily wage after eight years of service.

More than six months’ worth of sick time:

40% of the daily wage for labor completed in less than a year.

50% of daily earnings after 1 to 3 years of employment

60 percent of your daily wage will be paid to you after three years of employment.

All workers are needed to have a medical card.

Parental leave

An employee who is a woman is entitled to 98 days of maternity leave, plus an additional 15 days if the delivery is difficult or there are multiple births. In certain locations, women who get pregnant beyond the age of 23 may be entitled to additional maternity leave.

The Social Security Bureau where the person is registered determines the amount of maternity leave compensation based on the average monthly earnings for the previous 12 months. Social Welfare would pay this amount or three times the minimum wage, whichever is greater. Some nations, like Beijing and China, supplement maternity pay with additional salary.

father’s leave

Fathers have a right to 10 days of paid paternity leave when they request it. In certain places, there are options for additional paternity leave.

maternity leave

Nursing moms have a daily hour off for babies under the age of 12 months.

Others depart

Every city has its own set of regulations, which might vary from three to ten days. Ten days of marital leave are available to workers in Beijing and Shanghai.

Bereavement Leave: It might last one to three days and varies by city.

Severance and termination in China notice

If an employer unilaterally fires an employee for one of the following reasons, they are required to provide the worker with 30 days’ written notice or one month’s salary in lieu of notice. The employee is unable to resume the original employment (or any other work) allocated to them after the statutory medical treatment time has passed due to a sickness or non-work-related injury. The individual is incapable of performing the obligations of their work and is unable even after receiving training or switching jobs.

 The objective conditions under which the employment contract was signed have significantly changed, making it difficult to fulfill the terms of the agreement, and after consultation, neither the employer nor the employee are able to come to an agreement on changing the terms of the agreement. 

Except in the situations mentioned above, the employer is not required under national laws and regulations to provide advance notice or money in place of notice when terminating an employee. Although certain regional laws (such as those in Beijing) demand prior notice or payment in place of notice when terminating an employee’s employment.

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