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Employer of Record in China

Employer of Record in China

Employer of record in China (EOR) refers to hiring and registering workers for your business, without having to incorporate a local company, but respecting the labor law in China. Our company formation agents in China are at your disposal with support in this endeavor, but also with useful information regarding the employer of record in China.

 Quick Facts  
 What is an employee of record?   Employee leasing or hiring local workers for companies in China 

 Advantages  

Allows companies to hire employees in China, without setting up a separate legal entity. 

Legislation   

 Employment Law in China

 Type of contract provided    full-time or part-time, project-based
 Trial period  

 6 months for indefinite-term contracts signed in China

 Fast onboarding (YES/NO)  

 YES

 Payroll required (YES/NO)

 YES

 Prices for EORs in China  

Percentage-based or fixed pricing 

 Chinese labor law compliance  

 100%. Our local agents can tell you more about this type of service.

HR administration     Covered by our team
 Content of a work contract in China  

– position in the firm,

– job description,

– date of employment,

– type of contract,

– working hours,

– remuneration, etc.

Is overtime paid in China?   

Yes, but under specific conditions 

 Other benefits 

– maternity leave,

– health insurance,

– unemployment and retirement benefits, etc.

 Why choose EOR in China? 

– a faster way to expand a business,

– hiring well-prepared staff,

– cost-effective

 Services offered by our Chinese agents  

 – company formation support,

– dealing with employment contracts,

– collaborating with relevant authorities in China

What does an employee of record mean in China?

The employee of record in China involves a simple process of hiring workers and even an alternative for those who do not have to open an entity for their business. Thus, EOR services in China can also mean employee leasing. Here is other information in this regard:

  • In China, employees must work under an employment contract in full-time or part-time positions, depending on the project.
  • There is a trial period of one month for contracts of up to one year and 6 months for contracts for an indefinite period.
  • Employer of record in China also involves payroll services, and outsourcing Chinese HR administration. This way you can run the operations in China with your China-based workers.
  • The employer of record in China supplier acts as the legal employer for tax and labor aspects.


So, using the services of an employer of record in China provider lets enterprises and business owners engage legally with foreign workforce without breaking the Chinese Employment Law.

We advise you to contact our specialists in company formation in China if you want more information in this regard. If you want to open a company in China and benefit from our dedicated services, feel free to get in touch with us at any time.

You can read the infographic we prepared on EOR in China:

What are the working hours in China?

As in most countries, China observes a schedule of 5 working days per week, with 8 hours per day. Moreover, overtime should not exceed 36 hours per month, except in special or urgent cases. It is important to specify in this case that all these aspects are included in the employment contract when hiring EOR in China.

How is sick leave calculated in China?

In China, sick leave is calculated according to working years in the company and is paid with 80% of the salary. On the other hand, those who get injured or fall ill at work have the right to one year of sick leave, with full payment for treatment. Here are other details in this regard:

  • People who work for less than a year in the company do not have the right to annual leave.
  • 5 paid sick leaves are offered for those who have been with the company between 1 and 10 years.
  • People with between 10 and 20 years of experience in the company are entitled to 10 days of paid leave.

Why use EOR in China?

Employer of record in China is a service with many advantages. As a representative of a foreign entity, you can hire local staff without opening a company in China, which will deal with a wide range of operations for your business overseas. You can thus understand the direction of business in China, legislation and regulations, as well as employment policies. On the other hand, the costs are advantageous if you use the employer of record in China because you don’t have to open a company in this country and you don’t have to budget for the administration of a business.

EOR in China is helpful to business owners interested in the market in this country and thus they can benefit from experienced workers, but without running into the complexities of labor law.

Is EOR a cost-effective solution?

Employer of record in China is seen and appreciated as a cost-effective solution for international entrepreneurs. Those who want to enter the Chinese market can consider such services because they will benefit from experienced staff at affordable costs. There is no need for the physical presence of a foreign company in China, therefore, those who choose this form of business can also opt for EOR in China.

Is EOR in China flexible?

Yes, one of the reasons why foreign entrepreneurs choose EOR in China is the flexibility offered by the chosen services. Those who do not have a legal entity in China and want to hire a team to offer post-sale support, quality control, or other types of operations can choose EOR in China. Also, employer of record in China is a good solution for those who want to register a branch in China and even start their operations until it is incorporated. In addition, it is good to know that EOR is flexible from another point of view. For example, it can act as an outsourced HR department as soon as the foreign company opens its business in China. EOR in China is a good option for those who want to close their establishment here but want to keep departments and/or indispensable staff.

China, one of the biggest economic powers in the world

If China is your next business destination, you should know that China is the second largest economy in the world, after the United States of America. For instance, the GPD of China grew by approximately 4.5% only in Q1 of 2023. Here are other interesting figures:

  • According to the latest statistics, the GDP in China in Q1 of 2023 reached USD 4,145.5 billion.
  • The same data showed an economic growth of approximately 5.2% in China in 2023.
  • The total retail sales in China in Q1 of 2023 reached around USD 1,671.6 billion.

If you want more information about the employer of record in China, we are at your disposal. On the other hand, as soon as you decide to set up a WFOE in China, you can also opt for other services. For example, our accountants in China are at your disposal with a series of services designed to support your business from this point of view.

We invite you to contact our team of local company formation agents in China if you want more information about the employer of record in China. You can benefit from personalized offers for company incorporation in China.