Probationary periods serve as a crucial phase in the employment journey, allowing employers to assess the suitability of employees before confirming their permanent employment status. Therefore, I will delve into the regulations governing probationary periods in China, focusing on aspects such as duration, salary, social insurance, and termination of employment contracts during this period.
Let’s start with the duration of probationary periods. In China, the length of the probationary period is determined by the employer, taking into consideration the duration of the employment contract. According to labor laws, there are specific guidelines we should follow:
If an employment contract lasts for three months but less than one year, the probationary period should not exceed one month. For employment contracts spanning one year or more but less than three years, the probationary period should not exceed two months. In the case of fixed-term contracts exceeding three years, the probationary period should not exceed six months.
However, there are exceptions to these guidelines. Contracts with a specific work task-based duration or contracts with a duration of less than three months should not include a probationary period.
Now, let’s discuss the matter of salary during the probationary period. It is essential to ensure fairness in determining the salary for employees in this phase. The law stipulates that the salary during the probationary period should not be lower than either 80% of the minimum wage set by the employer for the corresponding position or the wage specified in the employment contract. Furthermore, the salary should never fall below the minimum wage standards set by the local authorities in the employer’s location.
Moving on, we need to address social insurance during the probationary period. It is the employer’s responsibility to apply for social insurance registration on behalf of the employee within 30 days of their commencement of work. Failure to complete this registration will be deemed illegal and the employee has the right to terminate the contract with immediate notice.
Lastly, let’s consider the termination of employment contracts during the probationary period. According to Article 21 of the Labor Contract Law, employers are generally prohibited from terminating employment contracts during the probationary period, except in specific circumstances outlined in Article 39 and Article 40, Paragraph 1, Items 1 and 2 of the same law. In such cases, employers must provide valid reasons for terminating the contract during the probationary period.