Doing business in China consists of several stages. In addition to the official registration of the company, setting up activities, finding an office, you need a working staff.
According to the legislation of the People’s Republic of China, companies with foreign capital can independently hire local residents or invite foreign specialists.
Representative offices of foreign companies are not a legal entity, and, by law, can not directly hire Chinese staff in China, the number of foreign employees is also limited.
The hiring of local employees in foreign representative offices is carried out by authorized firms, in accordance with the legislation of the People’s Republic of China. Among the well-known representatives-Ciecco, FESCO, ChinaStar – are large state-owned companies whose tasks include the execution of a contract with an employee, the calculation of salary payments and social contributions, as well as the protection of the interests of the employee. At the same time, the above-mentioned companies are usually used to formalize labor relations with employees, and the selection of employees of the representative office can be carried out independently, as well as companies with foreign capital.
Given the specifics of the Chinese state, there are some nuances that you need to know when searching for employees.
Foreign investors need to understand that the search for a competent employee is complicated due to a number of factors:
In China, the use of some Internet resources is restricted due to censorship, and many worldwide employee search sites are not available here;
In some industries, there is a personnel shortage, so the cost of employees in the market can be overstated;
Only a company with a valid license can get access to Chinese Internet resources for personnel search;
Ignorance of the Chinese language, communication difficulties do not allow you to fully assess the employee’s abilities, conduct an interview, and correctly conclude a contract.
Features of the Chinese staff
1. China has a large percentage of middle-and high-skilled professionals: a well-developed education system allows local residents to work in large foreign firms and gain work experience while traveling abroad.
2. In matters of performing their duties, the Chinese are highly efficient and competent in the field in which they work.
3. It should also be remembered that Chinese workers are highly specialized, which means that it can be very difficult to find a specialist who is competent in several industries at once.
This means that finding a regional sales director can be easier than finding a marketer with sales experience.
What should I do? And how to hire an employee in China?
Lang Yeon Consulting company carries out personnel selection in China for firms with foreign capital and representative offices of foreign companies, conducts personnel testing, prepares employment contracts, and provides information support on Chinese labor law issues.
Advantages of recruitment by Lang Yeon Consulting
Search for specialized personnel to work in a particular industry
Information support and advice on the provisions of the Labor Code
Preparation of employment contracts for a probationary and permanent period, in accordance with the legislation of the People’s Republic of China
Interview and test candidates for knowledge of English or Russian. Assessment of professional qualifications. This point is important, especially if the specialist will participate in negotiations with clients or represent the company in other provinces of China.
Advice on the number of wages and social contributions for ordinary employees, specialists, middle and senior managers for each individual province of the People’s Republic of China
Cooperation in the field of HR in China is carried out according to a certain scheme:
Execution of an agreement on the beginning of cooperation on personnel search between a foreign company and Lang Yeon Consulting
Selection of at least five candidates, organization of personal meetings or Skype interviews with them
Approval of remuneration and terms of the employment contract for a probationary and permanent period
Conclusion of an employment contract
Payment for Lang Yeon Consulting services
After signing an employment contract with an employee in China, a foreign company must:
pay the necessary taxes;
make contributions to state funds: the pension fund, the mandatory health insurance fund, the pension fund, and other social bodies that protect the rights and interests of employees.
The amount of deductions depends on the city in which the company is located or the employee is located. It should be borne in mind that when an employee works remotely, the company will not be able to make social contributions for him in his city, this problem will be solved by our company. Thus, a system of work of sales representatives can be built in those cities of the People’s Republic of China where your company is not actually present in China.
In addition to finding qualified employees and entering into an employment contract, our company’s responsibilities include:
registration of the work card and registration in the Office of Labor Resources of the People’s Republic of China;
calculation of basic contributions, for example, a contribution to a pension fund, registration of a medical certificate. insurance, etc.
personnel evaluation and team building;
maintaining personnel records on an ongoing basis.
Cooperation with Lang Yeon Consulting will help your company find highly qualified employees in China, conclude an employment contract with them on a favorable basis, and protect the rights of the employer, according to the Labor Code of the People’s Republic of China. Please contact our managers, experienced employees of the HR department will advise you.