HR Policies in China

HR policies in China are divided in accordance with national laws and local laws. This format has made the implementation of HR policies complicated and thus, varies between firms. In recent years, Chinese labor laws have undergone certain changes in accordance with the laws of developed countries like USA and UK. The transition of Chinese economy from a closed one to a market economy has been the reason for this shift in labor laws. HR policies in China for general HR issues like Recruitment, Termination is as follows:

Recruitment policies in China
Types of employees recruited by companies/firms in China include on a broad category of Locals, Non Resident Chinese seeking jobs in China, foreign nationals trying to establish themselves in China.

Recruiting Locals Various firms, particularly outsourcing, joint ventures or Multi Nationals prefer local population because of the lower cost to company even for high ranking management positions.

Recruiting Non Resident Chinese Non Resident Chinese are often preferred by companies because of a mixed combination of local knowledge and foreign expertise.

Recruiting foreign nationals Foreign companies setting up branches in China seek foreign nationals in the beginning. More precisely people from Hong Kong and Taiwan are preferred.


HR Termination Policies

Although laid down very briefly in both national and local legislations, termination policies have been a

complicated issue in China. However, in recent years implementation of these laws has been more rigorous owing to a rise in labor rights consciousness. The laws for termination include the following primary guidelines:

1) A 30 days notice citing the cause of termination has to be given.
2) The causes for termination will include: incompetence, violation of company rules or criminal offence, bankrupting the employer and redundancy.
3) The following reasons are not applicable for termination: Pregnancy/nursing, disabilities, injuries, illness.

HR policies in China are undergoing gradual positive up gradation.

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