How to create offer letters for employees in China [2024]

So you’ve decided to expand hiring into the People’s Republic of China (PRC) and have selected the best candidate as your potential employee. One of the things you have to do before starting the onboarding process is to send that applicant a job offer letter.

Crafting a compelling and legally compliant offer letter is a crucial step in the employee recruitment process. If composed correctly, it can help initiate an employment relationship by drawing in talent, ensuring a smooth hiring process, and even protecting you should a legal dispute arise. However, the offer letter needs to take into account both your company policies as well as Chinese employment laws, which can be tricky.

Read on to learn more about drafting effective, compliant offer letters to hire full-time employees in China.

China job offer letter checklist

Note: A job offer letter is not a substitute for a written employment contract, which is mandatory per Chinese law. For foreign companies hiring Chinese employees, all contracts should be supplied in English (or your local language) as well as Standard Chinese.

• Position (job title), job description, start date, and probationary period.
  Include the official job title and description of the employee’s duties, as well as the start date for their new job. Mention what job type this is—non-fixed term or indefinite contracts are the most common type of contract in China for full-time employees. Outline if there is a trial period to ensure that the employee is suitable for the role. In China, the maximum probationary period for a non-fixed term contract is six months for non-managerial positions and 12 months for managerial positions. Note that, even during probation periods, your employees cannot be terminated at will due to China’s strict worker protection laws—there must be a reason for the termination and they must get sufficient notice.
• Definition of workplace. Specify whether the Chinese employee is expected to commute to an on-site location or if they’ll be able to perform their duties remotely.
• Compensation & Benefits.
• Salary. In addition to the amount of the employee’s annual salary in people's renminbi (RMB), indicate when they’ll be paid their monthly salary. Typically, workers in China receive monthly paychecks on the last working day of each month or several days to several weeks into the month for the previous month of work.
• Other remuneration, if applicable. Chinese employees can be offered equity incentive plans. However, note that Chinese employees are only allowed to hold shares of overseas parent companies if that company is public. 
• Benefits. Specific details about the employee benefits won’t be expected until you draw up an employment contract, but it’s helpful to include some general information about company benefits in the initial job offer letter. The following are statutory benefits for full-time employees in China:
  
• Social security contributions, which include pension, unemployment insurance, medical insurance, and workers’ compensation
• Housing fund contributions. Both employer and employee contribute to the housing fund.
• Maternity and paternity leave. Female employees should get a minimum of 98 days of paid maternity leave, whereas paternity leave typically does not exceed 15 days. Some Chinese cities mandate that women over a certain age should get approximately 30 days of additional leave after giving birth for “late maternity leave.”
• Paid time off/vacation, which ranges between 0 and 15 days depending on the length of the employee’s service. For those under one year of employment, there’s no requirement to supply paid time off but giving first-year employees time off can make you a more competitive employer.
• Public holidays off. In China, there are seven public holidays, which include New Year’s Day, the Spring Festival (Chinese New Year), the Qingming Festival, Labor Day, the Dragon Boat Festival, the Mid-Autumn Festival, and National Day. 
• Working hours. State the new hire’s expected working hours and the company’s overtime policies. China is on a typical five-day work week. Employees shouldn’t work for more than 8 hours per day or 44 hours per week. China has overtime limits of 36 hours per month unless an emergency warrants temporarily longer working hours. For regular workdays, the minimum overtime payment is 150% of the standard hourly rate. Overtime for rest days should be paid out at 200% and 300% for statutory holidays.