As an employer expanding into China, understanding the key documents required for onboarding employees is essential for compliance with Chinese labor laws. This guide walks you through each document and the step-by-step onboarding process to ensure a smooth experience.
Onboarding Process: Step-by-Step Explanation
Step 1: Job Offer and Acceptance 📩
Trigger: After the interview process, you’ve decided to hire the employee.
Action: Prepare and send a formal job offer letter that outlines the terms of employment, including:
Job Title: [Position Title]
Compensation: ¥[Salary Amount] per month
Start Date: [Start Date]
Additional Benefits: Any allowances or bonuses
Working Hours: Standard work hours based on company policy and Chinese labor laws
Outcome: The employee reviews and accepts the offer, marking the start of the onboarding process.
Step 2: Employment Contract 📝
When It’s Used: After the offer letter is accepted.
Action: Draft and provide an employment contract that includes:
Job Duties: Clear outline of responsibilities
Compensation & Benefits: Salary, performance bonuses, housing allowance, etc.
Termination Clauses: Terms under which employment can be terminated
Probation Period: Typically 1-6 months
Non-Compete Clause: Where applicable, outlining any restrictions on the employee after leaving the company
Work Hours and Overtime Compensation: Standard work hours and overtime pay in compliance with labor laws
Outcome: The employee signs the contract, confirming their employment terms.
Step 3: Social Insurance and Housing Fund Registration 📄
Legal Requirement: Employers must register employees for social insurance and housing fund contributions.
Action: Enroll the employee in the mandatory social insurance programs, including:
Pension
Medical Insurance
Unemployment Insurance
Work-Related Injury Insurance
Maternity Insurance
Also, enroll them in the Housing Provident Fund, which is mandatory in China. Both employer and employee contribute to this fund.
Outcome: The employee is fully covered under China’s social security system.
Step 4: Tax Identification Number (TIN) Registration 💳
Purpose: To ensure accurate tax withholding from the employee’s salary.
Action: Register the employee with the local tax authority for a Tax Identification Number (TIN), which is used for income tax deductions.
Outcome: The employee’s TIN is recorded, and payroll taxes are calculated in compliance with Chinese tax laws.
Step 5: Personal Identification Documents 🔍
Purpose: To verify the employee’s identity and eligibility to work in China.
Action: Request a copy of the employee’s:
National ID (for Chinese nationals)
Passport and valid visa (for foreign nationals)
For foreign workers, ensure they have the proper work visa and residence permit to comply with Chinese immigration laws.
Outcome: Identity is verified, and the employee’s eligibility to work is confirmed.
Step 6: Employee Handbook Acknowledgment 📚
Purpose: To ensure the employee is familiar with company policies and workplace rules.
Action: Provide the employee with an Employee Handbook covering policies such as:
Code of Conduct
Work Hours and Overtime
Annual Leave, Sick Leave, and Maternity Leave
Anti-Discrimination and Harassment Policies
Confidentiality Guidelines
Ensure the handbook complies with Chinese labor regulations.
Outcome: The employee signs an acknowledgment form, confirming receipt and understanding of company policies.
Step 7: Health and Safety Training Acknowledgment 🚧
Purpose: To comply with China’s work safety regulations and ensure the employee understands required safety protocols.
Action: Provide health and safety training tailored to the employee’s role, especially if their job involves hazardous work or equipment.
Outcome: The employee signs an acknowledgment form, confirming they have received and understood the training.
Step 8: Emergency Contact Information Form 🚑
Purpose: To have contact details in case of an emergency involving the employee.
Action: Request the employee to provide Emergency Contact Information, including:
Name
Relationship
Phone Number
Outcome: The employee provides these details, ensuring you have a point of contact for emergencies.
Step 9: Bank Account Information Form 🏦
Purpose: To set up direct deposit for salary payments.
Action: Request the employee to provide their banking details, including:
Bank Name
Account Number
Branch and Bank Address
Outcome: The employee submits their banking information, and you set up direct deposit for timely salary payments.
Step 10: Non-Disclosure Agreement (NDA) 🔒
Purpose: To protect the company’s confidential information, trade secrets, and intellectual property.
Action: Have the employee sign an NDA to ensure that proprietary business information is kept confidential and not disclosed to unauthorized parties.
Outcome: The employee acknowledges their duty to protect the company’s confidential information.
Step 11: Work Visa (for Foreign Employees) 🌍
Purpose: To ensure foreign employees have the legal right to work in China.
Action: For non-Chinese employees, assist them in obtaining the required Z Visa (work visa) and subsequently a Residence Permit. Foreign employees must also complete a physical examination as part of the visa process.
Outcome: The employee receives their work visa and residence permit, allowing them to legally work in China.
Conclusion: How GlobainePEO Can Help with Onboarding in China 🌐
GlobainePEO provides comprehensive onboarding solutions, including managing employment contracts, payroll, benefits, and compliance with China’s labor laws. By partnering with GlobainePEO, you ensure a smooth onboarding process while focusing on your business expansion in China.