Work in China
China employment contract checklist for foreign employees
Employment contract checklist
Before signing, make sure the written contract answers six questions: who employs you, what work you will do, where you will do it, what you will be paid, what the employer will handle for your lawful work status, and what happens when the relationship changes or ends.
This checklist helps you identify missing or ambiguous terms. It does not decide whether a clause is legally valid or predict the outcome of a dispute.
01
Identify the employer, role and work location
The company brand, office host and legal employer can be different entities.
Confirm the contract states or clearly links to:
- legal employer name;
- registered or contact details sufficient to identify the entity;
- employee name and identity details;
- job title;
- material duties;
- reporting line if important;
- primary work location;
- other locations or travel expectations;
- start date and contract term.
The work location matters for more than commuting. It can interact with the work-authorisation route and local administration.
If the offer was made by a regional headquarters but a Chinese affiliate will employ you, ask which entity assumes payroll, work-permit and termination responsibilities.
Do not assume a contract is valid because all fields are present. If entity identity or authority is unclear, resolve that before signing.
02
Read salary, currency and payment terms literally
Do not stop at the annual or monthly headline.
Clarify:
- whether salary is stated gross or net;
- payment currency;
- payroll frequency and date;
- base salary versus bonus or commission;
- conditions for variable pay;
- expense reimbursement;
- lawful deductions;
- what happens if the start date moves because the work-authorisation process is not complete.
“Net” can be ambiguous if the contract does not explain who bears changes in tax or other deductions.
For bonuses, look for the actual trigger. “Discretionary,” “target,” “guaranteed” and “subject to company policy” are not interchangeable.
If part of the package is paid outside China, do not assume that removes Chinese tax or compliance questions. Use the tax guide for the cross-border analysis.
03
Check probation, hours, leave and benefits
Ask HR to identify which terms are contractual and which sit in a separate policy.
Review:
- probation wording;
- working-hours arrangement;
- rest days and leave;
- overtime or time-off policy where relevant;
- statutory and company benefits;
- public social-insurance treatment;
- private medical insurance;
- housing;
- school or dependant support;
- home leave;
- relocation.
Avoid treating an employer handbook as fixed if the contract allows unilateral policy changes. Ask which version applies and how changes are communicated.
For foreign employees in Shanghai, current municipal guidance recognises access to labour-dispute procedures for disputes involving matters such as working hours, social insurance and benefits. That does not tell you how an arbitrator would decide your clause.
If a benefit is material to accepting the job, put the important conditions in the written contract or an incorporated document you can keep.
04
Clarify work-permit and relocation support
“Visa support” is too vague for a relocation decision.
The contract or written employer plan should make clear:
- which entity sponsors the work authorisation;
- who prepares and submits employer-side work-permit filings;
- which applicant documents you must provide;
- who pays official or provider costs;
- whether the employer coordinates the work-related residence step;
- what happens if approval is delayed or refused;
- whether the employer supports dependants;
- which relocation items are included;
- which costs must be repaid if you leave early.
The employer cannot guarantee an authority decision. A clause that promises approval is not a substitute for a viable route.
If a relocation provider is involved, ask whether it acts for you, the employer or both, and which responsibilities remain with HR.
05
Read restrictive clauses before they matter
The clauses people skip are often the clauses that become important later.
Identify:
- confidential information definition;
- data-security obligations;
- ownership of work product and intellectual property;
- use of pre-existing IP;
- outside activities;
- non-solicitation;
- non-compete language;
- conflict-of-interest rules;
- return/deletion of company information;
- governing language and dispute provisions.
Do not rely on a general internet summary to decide whether a restrictive clause is enforceable. The wording, role and facts matter.
If a non-compete, IP assignment or cross-border data clause could materially affect your career or existing business interests, get advice on that clause before signing.
06
Check termination, final records and the dispute route
Read the end of the contract while the relationship is still good.
Clarify:
- notice wording;
- termination grounds described by the contract;
- final salary and variable-pay treatment;
- unused benefits where relevant;
- return of equipment and documents;
- work-permit / residence handoff;
- tax and social-insurance records;
- employer reference or separation documents;
- dispute forum and language.
For Shanghai, the city's current labour-dispute guide confirms that foreign employees can use the labour mediation/arbitration framework for covered employment disputes. Use that route for a real dispute instead of trying to solve the legal merits through a checklist.
Keep both language versions of the contract if more than one is signed and ask which version controls in case of inconsistency.
Before signing, turn every unresolved item into one of three states:
Accepted as written Clarification required Professional review required
That is a better contract check than trying to label the whole agreement “standard” or “safe.”
Sources checked for this guide: Shanghai labour-contract and labour-dispute guidance; national employment and contract-law framework; Shanghai work-permit/residence routes. Checked 14 August 2026.
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