Our China employment lawyers constantly hear misinformation about China employment contracts and double wage claims. In this post, I will try to set the record straight. China’s employment laws require full-time employees be employed pursuant to a written employment contract. But what happens with employees without a written employment contract? As with pretty much everything
The China lawyers at my law firm are big fans in using China distributors to market and sell products in China. Our thinking on this goes as follows: 1. We have seen too many Western companies spend too much time and money trying to sell their products into China. 2. We have seen too many
Contracting in China: The Old and the New It used to be common for OEM manufacturing in China to be done on a purchase order basis, with no underlying contract. Much service work done by foreigners for Chinese clients was based on an exchange of emails. Today, however, to be able to bring a plausible
As we pointed out in SaaS in China: Build a compliant Go-to-Market Plan by Looking Beyond the Regulations and again in Foreign SaaS in China: Get Off of My Cloud, the PRC does not permit foreign entities to make direct sales of SaaS products from servers located within China. For foreign software companies, this is a major
Under Chinese law a foreigner who comes to China to complete a “short-term work task” and stays no more than 90 days, must get a work visa (a Z visa). A “short-term work task” is defined as one of the following: Tasks such as those involving technology, scientific research, management and guidance at the place
China Contract Formalities Contracts with Chinese companies often generate a unique set of legal and procedural intricacies. China’s legal landscape differs significantly from that of American, European, or Australian jurisdictions, primarily due to its distinct regulatory frameworks and business culture. These differences require a China-centric approach to both the drafting of China contracts and to
January 19, 2015 marks the date of the death of the VIE investment structure in China. On this day, China’s State Council issued a discussion draft of legislation setting out the plan for overhauling China’s Chinese foreign investment legal regime. The new system is set out in the PRC Investment Law Discussion Draft (the “Draft”),
Media reports state that online gambling in China soared during the recent World Cup. The punters put their money into online gambling on the World Cup, with revenue at China’s government run lottery site increasing by over 80% during this period. The general ban on gambling in China is subject to one exception. The Chinese
Many of our clients that went to China years ago to have their products made there are now interested in selling those same products within China. One way to do that is to form a WFOE for selling the products, but oftentimes the cost and the hassle of doing that is not worth it, especially
China’s labor law provides for a 44-hour work week, but its regulations provide for a 40 hour work week and most municipalities enforce the 40-hour work week, but recognize that this workweek may not be practical for certain employees. A “flexible” working hours system is thus permitted for “senior management” as an exception to this
