When workers start out in new roles in new organizations, there’s always an adjustment period for both the employer and the employees. Employers need to learn more about the specific talents and capacities of the people they’ve just hired, and employees need to learn what’s expected of them so they can perform their work tasks effectively. Both parties also have to figure out for certain if the employment relationship is going to work out positively. This is the rationale behind the idea of the probation period in China.

In this guide, we’ll examine the characteristics of probation periods, their legal repercussions, and how they’re best navigated by workers and employers alike.

Definition of a Probation Period in China

While the socialist Chinese government has created strong protections for worker’s rights, it also needs to represent the interests of employers and balance these together. Probation periods in China are a result of this balance. These are limited periods of time in which employees can be paid less than their contractually agreed salaries, can be terminated with less notice than usual, and can resign with minimal notice. Probation periods give employers time to test employees out to see if they’re truly fit for their jobs. Employees can find out what their working conditions and expectations for their jobs truly are and decide if they want to stay in their positions. 

It’s important to note that the People’s Republic of China has ratified the International Labor Organization’s Convention 158. This convention states, among other conditions, that employees shouldn’t be subject to probation periods longer than six months, nor should they face any negative consequences for dismissal during these periods.

Lengths of Probationary Periods in China

For both employees and employers, it’s crucial to understand how long probation periods may legally last in China. As in many other countries, the lengths of probationary periods in China are linked to the types and duration of employment contracts as follows:

Probation Periods for Project-based Contracts

In China, project-based contracts are legal, and they expire when an agreed amount of work is completed. Probationary periods are not allowed for project-based contracts, regardless of their durations.

Probation Periods for Fixed-term Contracts

As the name suggests, fixed-term contracts are concluded for set time periods and are legal and common in China. Probationary periods can be used with fixed-term contracts and are limited to a maximum duration of six months.

The specific lengths of probation periods for these contracts must follow these stipulations:

Fixed-Term Contract Duration Maximum Probation Period
3 months to 1 year 1 month
1 year to 3 years 2 months
More than 3 years 6 months

Probation Periods for Permanent Contracts

Also known as open-ended contracts, permanent contracts can include probationary periods that also have a maximum duration of six months as well.

Legal Considerations of Probation Periods in China

Probation periods are considered periods when employees are learning their roles and responsibilities at work and are not yet able to work at full capacity. They’re also times when both employers and employees can decide not to continue with their agreed-upon contracts.

However, probationary periods have to follow specific rules that help to balance the rights of the worker with the needs of the employer, as laid out in the Labor Law of the People’s Republic of China. These legalities include the following:

Duration

Probation periods in China may be of any length as long as they don’t exceed the legal maximums for each contract type and duration. Probation can be extended with the consent of the employee but only so the total length doesn’t exceed the maximum time allowed. However, workers cannot be placed on probation twice by the same employer.

Pay and Working Conditions

Employees may not be paid less than the minimum wage paid for the same job within an enterprise. They also cannot be paid less than the minimum wage in the city or region where they work. Workers also cannot be paid less than 80% of the wages agreed in their contracts during probation. Employers have the discretion to pay workers lower wages during this time as their productivity is not yet at a maximum.

Social Insurance

Employers are obligated to make contributions to Social Insurance on behalf of the probationary employees. This includes deducting the employees’ contributions (roughly 10% but varying by location) and employer contributions (roughly 21-28% of wages).

Termination and Notice

During probationary periods, Chinese workers have the right to resign and terminate their contracts by giving the employer three days’ notice. 

The rules are much stricter for employers, however. Employers must provide three days’ notice to terminate workers unless they have grounds to terminate them for gross misconduct. Regardless of the reason for termination, however, the employer must offer a fair justification. Terminations must be based on work performance and not on personal reasons. The employer must be able to prove that the employee did not meet the requirements for the job set out during recruitment, or violated the rules of the employer.

Benefits of Probation Periods in China

Probation periods in China offer protections and benefits to both employees and employers, including the following:

  • For Employees

Ability to test out jobs and terminate contracts without giving notice or facing negative consequences.

Legally set durations and pay restrictions to protect new workers from employer exploitation.

  • For Employers

Able to pay new workers lower wages during periods of less-than-full productivity.

Option to terminate employees who don’t live up to expectations or prove their qualifications with minimal notice.

Allow time to introduce workers to their tasks, internal systems, and company culture.

Frequently Asked Questions

No, these periods are optional and up to the discretion of the employer. They must, however, be agreed upon before the start of work and written into employment contracts to be legally valid. 

During a probation period, employees must normally give their employers three days’ notice unless the employer has not paid their wages on time or has committed a breach of contract. In these cases, employees may resign without giving notice.