Answer: During the probation period, the employer assesses your work abilities, and you evaluate whether the employer aligns with your career development goals. Despite uncertainties, this period is integral to the duration of your employment relationship, and you remain protected by employment laws covering aspects such as minimum wage, employer contribution of social insurance, rest and vacation rights, and other worker entitlements.
During the probation period, the wage paid by the employer to the employee shall not be less than 80% of the formal wage stipulated in the employment contract and shall not be less than the minimum wage standard.1Article 20 of the Employment Contract LawFor example, if your employment contract stipulates that your wage is RMB 5,000, your probation wage shall not be less than RMB 4,000, otherwise the employer is obligated to make up the difference.
If the employer is not satisfied with the probationary employee and wants to dismiss the employee, it must also meet the legal requirement that the employee “does not meet the hiring requirements”,2Article 39 of the Employment Contract Lawrather than what many people think, that employers can dismiss probationary employees at will. In addition, if an host employer is not satisfied with a probationary dispatched new employee under labor dispatch, the employee can be returned to the labor dispatch employer.
The length of the probation period shall not exceed the length prescribed by law. Please refer to How long of a probation period can an employer provide for a newly recruited employee? If the agreement on probation period violates the legal provisions, for example, the length of time exceeds the scope permitted by law or the probation period agreement is illegal, the probation period shall be considered as the formal contract period. The employer’s termination of the employee’s contract during this so-called ¡°probation period¡± is likely to constitute an illegal dismissal.
Sometimes, the two parties may have agreed on a probation period when the employee joined the company, but later extended the probation period. If the employee does not agree, the extension is invalid. If the employee approves the extension, the period beyond the statutory allowable limit is considered part of the formal contract period. Regarding the extended probation within the statutory allowable period, courts around the country hold two perspectives: one deeming it legal and the other considering it illegal, each carrying corresponding legal consequences. For details, please refer to Our company is not satisfied with the performance of a newly recruited employee during the probation period and has extended his probation period. Is this legal?
During the probation period, in addition to adhering to professional ethics, employees are obligated to provide three days’ notice to the employer if they decide to resign, for example, due to dissatisfaction with the working environment.3Article 37 of the Employment Contract LawOtherwise, you may bear the liability of compensating the employer for the loss caused by your urgent resignation. Please refer to Should an employee compensate the employer for the losses caused by their fault?
This article is a part of our new book“Employment Law in China: A Practical Guide. A book about “What should I do” with case laws.”Stay tuned, and the book will soon be published as an electronic books!
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.
Email: wangdong@royalaw.com
- 1Article 20 of the Employment Contract Law
- 2Article 39 of the Employment Contract Law
- 3Article 37 of the Employment Contract Law