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Victoria

Event Recap - Hiring in China and How to Avoid Potential Pitfalls

07 February 2017

ACBC Victoria welcomed Shanghai-based Mr Delain Gunewardena, Account Executive, International Sales Department from FESCO Adecco and Ms Jo Gao, President and Senior Partner from Chinainlaw Partners law firm to our roundtable to provide insight into navigating the various hiring models in China and Chinese labour laws.

The roundtable event provided an engaging platform to learn more about hiring in China and how to avoid potential pitfalls.

Delain began by providing an overview of FESCO Adecco, a joint venture formed between the Adecco Group and the Beijing State Government in order to meet the temporary staffing needs of the 2008 Beijing Olympics.

He moved on to outline the various hiring models used in China, stressing the importance of understanding the correct hiring principles, as HR terms in China are different to those used in Australia. The workforce management models include outsourcing service, dispatch service, payrolling service and direct hire.

Delain then covered issues such as recruitment and retention, emphasising the potential difficulty of attracting and retaining high quality industry professionals in China with younger talent easily lured away by more financially rewarding positions.

The common pitfalls identified by Delain were:

  • Hiring staff in China as suppliers or agents
  • Hiring staff without a contract
  • Underestimating upfront time commitment of hiring process
  • Underestimating the difficulty in finding the right talent
  • Protecting your trade secrets

Following a brief Q&A session, Jo from Chinainlaw Partners gave her presentation on Chinese labour contracts and security, providing great detail on the technicalities of labour law in China.

Jo began by outlining who can hire employees, covering the various types of companies, namely representative offices, wholly owned foreign enterprises, joint ventures and assignment companies. Other key areas underlined by Jo included who can hire employees, when and how to sign a contract, welfare, terminating a contract, compensation and China’s lawsuit procedure. Jo stressed the importance of the handbook (or employment agreement) and being able to prove mutual consent, legitimate reasons or ‘incapability’ when terminating a contract.

Jo concluded by providing some tips to foreign employees and following her presentation, discussion and Q&A among the speakers and attendees continued.

We kindly thank Delain and Jo for their high-level expertise from on-the-ground in China. We also extend our thanks to those who attended and participated in discussion, offering their experiences, insights and questions, which contributed greatly to the highly engaging session.