Categories: Uncategorized | By Peter Pang

China is an excellent source for employee recruitment, whether it be to staff up your local wholly foreign-owned entity (“WFOE”) or to recruit employees for the foreign enterprise’s domestic operations outside of China. With nearly 4 million college graduates every year across a wide spectrum of disciplines, China has become a human resource capital for hardworking and entrepreneurial talents.

With a population of over 500 million working talents between the ages of 21 and 55, the Chinese government has increasingly begun to focus on, and codify, employment practices into long and winding laws and regulations that govern not only the hiring and firing of employees, but also the benefits that each employee is eligible to receive as part of his working package.

Navigating Chinese Labor Law

At IPO Pang, we fully recognize that many of these benefits and regulations impose additional burdens on the employer, but at the same time, we also believe they provide a platform from which a foreign enterprise employer will be able to discipline, incentivize, and terminate a problem employee. Implementing the new regulations in favor of the foreign enterprise employer is what we do – we only represent employers and not employees.

One of the most frequently asked questions from a foreign enterprise is that of executive compensation to be paid a key employee, and the agreements that need to be in place in order to maximize the employer’s peace of mind and confidence while minimizing employee tax (which translates to lower total financial commitment by the employer). Having an attractive compensation package to a top executive is a vital tool to attract and retain top talent, and thanks to our local knowledge, we can advise on compensation norms and how to negotiate, as well as draft employment and benefit agreements, and company policies so as to be not only legally compliant but competitive in an increasingly competitive market for top talents.

China’s laws regarding employment are subject to frequent change as the government regularly develops and rolls out new policies concerning employment, discrimination, benefit standards, termination rights, and labor union rights. One of the key services IPO Pang provides is to keep its clients abreast of these developments and to isolate problematic provisions that can distract and impact the local wholly foreign-owned enterprise’s productivity. Often a particular problem requires the local employment bureau to provide guidance. Our team of lawyers and specialists draws on years of experience in working with local labor bureaus to advise foreign enterprise relating the best course of action given the current standards of enforcement and practices.

See our articles with additional information:

Labor Law in China

China: No Labor Pains for Foreign Companies

Assistance to Foreign Enterprises in China From Recruitment to Retirement

IPO Pang can assist foreign enterprises with their labor needs all the way from recruitment to retirement of its employees, and can provide a seamless integrated professional service to deal effectively with virtually all employment related problems and issues. Because we have experience with many industries, and because many employment issues are industry-specific, we distinguish ourselves from the competition by being able to offer sophisticated advice and solutions to highly sensitive and often combative situations.

We also provide skilled attention to the drafting, implementation and termination of employee benefits programs and compare such programs with the norms for WFOEs in China. Some of our services include negotiating, drafting and translating (English/Chinese) all employment-related documents, such as employment agreements, stock option plans, phantom stock option plans, employment termination, separation and release agreements, resignation agreements and related documentation, confidentiality agreements, secrecy agreements, and intellectual property right and invention assignments, non-compete agreements, and overseas assignment agreements.

At IPO Pang, we believe employees are the foreign enterprise’s most valuable asset, as well as its greatest vulnerability. Skillful management of labor issues ensures that the interests of employee and employer alike are adequately protected.

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