China’s legal framework for employee protections continues to evolve, providing workers with important rights and setting clear obligations for employers. Although there isn’t a single comprehensive law covering all aspects of worker protection in China, several key statutes together establish the standards that govern fair and safe treatment in the workplace.
In this section, we offer a practical overview of the main employee protections in China under local labour laws. We explain how these laws apply in areas like whistleblowing, data privacy, temporary agency work, anti-discrimination, harassment, and pay equity — helping employers understand their responsibilities and employees know their rights.
Whistleblowers play an important role in society by calling out wrongdoing at work. Because of this, many countries have introduced laws to facilitate whistleblowing and protect whistleblowers from retaliation. Read on to learn what you need to know about whistleblowing in China.
China currently has no single national-level whistleblowing law similar to legislation in the EU or the US. Instead, whistleblowing in China is governed by a patchwork of regulations and industry-specific rules. One nationally enforceable regulation is the 2016 Provisions on Protecting and Rewarding Whistleblowers, which offers legal protection and rewards for individuals reporting duty-related crimes committed by state functionaries.
In general, Chinese law still prioritises external reporting to procuratorates or public security agencies, especially for suspected crimes. However, internal compliance systems are becoming more common for managing less serious misconduct. In addition, the 2019 State Council Guiding Opinions require governments and government-related institutions to set up internal reporting systems. Separate regulations apply to centrally administered state-owned enterprises.
There are also a number of sector- or industry-specific rules that employers may need to be aware of. For example, specific regulations exist for companies operating in:
Employers in all countries must process the personal data of their employees as part of the employment process — and they have a responsibility to keep that data safe and secure. Read on to learn what you need to know about data privacy in China as an employer.
The three main pillars of data privacy in China are:
China’s Civil Code also strengthens protections for individuals’ privacy and personal data protection in China. Together, these laws impose certain obligations on employers when it comes to safeguarding and lawfully processing their employees’ data.
Employers in China should ensure they have a valid legal basis for processing employee data, which might include consent, performance of a contract, or legal obligations. Employers should also only collect data that is necessary and relevant to their purposes, and inform employees about what data is collected, why it’s collected, how it will be used, and how long it will be stored.
To comply with the various data privacy laws in China, employers should also:
There are also special rules that apply to employee monitoring tools in China. For example, tools like facial recognition, voiceprint, location tracking, and other biometric identifiers are explicitly defined as ‘sensitive personal information’ under the PIPL. While these surveillance techniques are permitted, they require separate, freely given consent and clear signage whenever used in public/office areas.
Employers can engage temporary labour through work agencies when they need additional staff on a short-term basis. As in other countries, there are specific provisions in Chinese labour law to protect temporary agency workers and ensure they receive equal treatment with other types of employees.
Temporary agency work in China is highly regulated, and there are restrictions on the use of temporary agency workers that employers need to be aware of. First, only certain positions are eligible to be filled by temporary agency workers. Temporary agency workers must also not make up more than 10% of an organisation’s total headcount.
Staffing agencies in China must also have a Staffing Agency License and are responsible for ensuring their worker management is compliant. Companies that engage workers through unlicensed providers could be held jointly and severally liable for employment law claims. The agency and the client must sign a staffing services agreement, including detailed provisions about the work to be performed.
Temporary agency workers in China are entitled to pay and working conditions that are equivalent to those they would be entitled to as permanent employees of the hiring company. They are also entitled to take part in collective bargaining with other workers. Conditions for ending a temporary agency worker’s assignment are closely regulated, and unlawful termination can result in fines and penalties.
Employees in China have the right to be free from discrimination at work as well as in other spheres. This right is protected by various laws, which employers must abide by. Read on to learn what you need to know about anti-discrimination laws and protections against harassment as an employer in China.
Employees in the People’s Republic of China (PRC) are protected from various forms of discrimination through varied labour laws, including:
Unlike many other countries, China does not have one consolidated anti-discrimination law that includes a list of protected characteristics. However, the laws mentioned above identify certain traits that must not be used as the basis for unfair treatment. These include:
It’s worth noting that sexual orientation is not expressly listed as a protected characteristic in Chinese labour law. However, China’s Supreme Court has indicated that all traits that are not related to job duties but used to justify unfair treatment may be treated as protected — which would include sexual orientation.
Harassment in China has mainly been addressed through legislation related to sexual harassment. Specifically, this is regulated by the PRC Protection of Women’s Rights and Interests Law, which specifically prohibits sexual harassment against women using speech, text, images, physical behaviours, and other means.
As of 2021, Article 1010 of China’s Civil Code also provides a broader definition of sexual harassment, making it clear that men can also be victims. Under these laws, employers in China have a responsibility to prevent sexual harassment of any kind from occurring in the workplace. To do this, they should:
Employees in China have the right to equal pay for equal work, regardless of their gender. This is explicitly laid out in various pieces of key employment legislation. Read on to learn what you need to know about pay equity laws in China.
The right to equal pay for equal work in China is protected by the following legislation:
China has also ratified both the Equal Remuneration Convention (C100) and the Discrimination (Employment and Occupation) Convention (C111), showing its broader commitment to equal pay.
If an employee feels they have experienced pay discrimination in China, they can file a labour arbitration claim or bring a civil lawsuit to recover the salary difference. Depending on the circumstances, the employer may be ordered to pay compensation for underpayment plus potential penalties. However, enforcement may be limited due to difficulty providing proof of discrimination.
Understanding what you can and can’t do as an employer is one of the biggest challenges of hiring in China. Get it wrong, and you could face legal action and damage to your reputation.
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