From hiring to firing

Since the PRC Employment Contract Law (中华人民共和国劳动合同法), issued by the Standing Committee of the National People's Congress, came into force on January 1 2008, employment-related issues have attracted increasing attention in the Chinese and international media. The strike at Honda's facilities in Guangdong and the suicides at Foxconn highlighted the increasing tension in labour relations in China. The authorities are striving to maintain social stability by tackling income inequality and strengthening social security, bringing further reform to Chinese labour laws and regulations. The wave of unrest and continuing legal reforms create new challenges for all companies operating in China, especially foreign companies. It is time for employers to re-examine every step of the employment process and how it is handled, from hiring to firing, to avoid costly mistakes.