Answer: According to the termination time of employment relations and the types of work arrangements, China’s Employment Contract Law and judicial decisions stipulate or list the following six types of employment contracts:
The first is permanent employment contracts, in which no expiry time is provided for, are normally full-time contracts. Full-time employees typically work 40 hours per week (five days and eight hours per day), while casual employees work less than 24 hours per week.
The second is fixed-term employment contracts, which are contracts with termination period. This is the most commonly used way to recruit new employees in China. Starting from 2008, if a fixed-term employment contract is terminated, the employer shall pay economic compensation according to the post-2008 length of service of the employee. Fixed-term employment relationship is typically full-time.
The third is labor dispatch, that is, an employment relationship in which the dispatch employer (human resources company) dispatches the employee to the host employer (that is, the employer that actually uses the employee’s service) to engage in temporary, auxiliary, and substitutive work. The characteristic of this kind of employment relationship is that the employment relationship (with the dispatch employer) is separated from the actual labor use relationship (with the host employer). Labor dispatch can only apply to employees on full-time basis and in the form of a fixed-term employment contract. [Article 30 of the Regulations on the Implementation of the Employment Contract Law.]
The fourth type of employment contract is called the contract that ends at completion of a task (hereafter refers to Assignment Contracts). Assignment Contracts have uncertain termination dates, but they are similar to fixed-term employment contracts in essence, because they come to an end when the task is completed.
The fifth is the system of irregular work hours and the system of general work hours. They apply when the standard work hours cannot be implemented because of the nature of the work, natural conditions, or seasonal conditions. The general work hours and irregular work hours are both the kind of quasi-full-time work hours, that is, the total work hours of employees are similar to full-time work hours, but only the special arrangement of busy and idle is made.
The sixth is the casual employment contract. This is a flexible way of employment contract with work hours of not more than 4 hours a day, or not more than 24 hours a week. The two parties may have an oral contract and terminate the employment relationship at any time.
The above types of employment relations are not strictly distinguished according to one specific indicator. For example, if we strictly distinguish according to the workhour system, there will only be the standard work hours, casual and irregular work hours and general work hours; Permanent employment contracts, fixed-term contracts, labor dispatch, and Assignment Contracts may be classified into the standard work hours rather than separate categories. The purpose of our classification here is to facilitate the legal analysis and explanation of related employment rights and obligations and “what should I do” in the practice of employment law.
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Mr. Dong Wang has been in practice for over 20 years, specializing in business law, including employment law, commercial law, company law, and intellectual property law. Mr. Wang has earned respect and trust from his clients due to his professionalism, fidielty, and kindness.
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