Labor Law and Employment

China labor and employment laws have become increasingly complex and pro-employee. This has driven up the cost of doing business, but at the same time, has also allowed for the development of a new generation of sophisticated employees that are more innovative, capable, hardworking, able to handle high end tasks, and politically sensitive and astute relative to employee rights and entitlements. This new attitude towards work has brought with it a renewed focus on working hours, employee benefits, employment rights, termination rights, freedom of expression, privacy issues, family leave issues, vacation allowances, assignment of inventions, working environment and conditions, and numerous other labor and employment related rights and obligations. It is also important to have in mind that Chinese regulations can be quite unique and differ from other countries’ rules.

“Employee terminations in China can be quite unlike terminating an employee in other countries and can often lead to a somewhat torturous and lengthy process that can turn very ugly very quickly.”

To help understand the specificities of Chinese law on all these matters, IPO Pang advises numerous multinationals on proper handling of employee terminations, proper procedures during the handover of confidential company materials, non-compete clauses, and dealing with use and preservation of company trade secrets. Where there is a contested matter, we have extensive experience in appearing before the Labor Board and advocating on behalf of the employer client. We have years of experience negotiating and drafting employment agreements and documents for employees at all levels in English and Chinese, as well as the following matters – all in conformity with Chinese Labor laws:

  • Employee assignment agreements: Employees can be asked to assign the intellectual property they create while under the employment of the company. Our team drafts such clauses to frame the transfer of rights.
  • Non-disclosure agreements: Doing business suggests the establishment of new relationships and sensitive information sharing. IPO Pang can draft NDAs to strongly protect all the confidential information exchanged between two parties.
  • Non-compete agreements: We believe it is important to limit employees from competing with the firm’s business by performing similar work for another employer after termination of employment. Our team drafts non-compete agreements valid for a specific period of time and within a certain geographical area.
  • Employee handbooks and Manuals: Having an employee handbook that compiles all the policies and working conditions expected from the employee and provided by the employer; as well as manuals on specific matters; leads to a better working atmosphere. IPO Pang has helped settle well-written handbooks and manuals to prevent our clients from litigations related to workplace actions and expectations.
  • Employee code of conduct: An employee code of conduct, ideally couple with an employee handbook, can efficiently protect the brand and reputation of a business and informs employees of behavior expectations. Having one helps maintain a standard of conduct inside the company. IPO Pang knows how to make it a strong legal tool used to denounce employee infractions accordingly to Chinese’s laws.

IPO Pang is not limited to the areas mentioned above and can give advice on various other matters such as ethical compliance or employee benefit policies.

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