Question 1

Kann ich über mein Unternehmen Mitarbeiter im Ausland beschäftigen/entsenden?

Accepted Answer

Nein, Sie müssen ein Unternehmen vor Ort nutzen, um das Arbeitsrecht des jeweiligen Landes einzuhalten.

Question 2

Muss ich eine lokale Niederlassung im Ausland gründen, um Personal zu beschäftigen/zu entsenden?

Accepted Answer

Ausländische Unternehmen können entweder in jedem Land eine lokale Niederlassung gründen oder die Dienste einer lokalen PEO (Professional Employment Organization) in Anspruch nehmen, um das Personal direkt vor Ort einzustellen.

Question 3

Was ist ein Employer of Record?

Accepted Answer

Der Employer of Record ist eine juristische Person, die für das in einem bestimmten Land beschäftigte Personal verantwortlich ist. In der Praxis kann ein ausländisches Unternehmen entweder eine Tochtergesellschaft gründen, um als Arbeitgeber für seine im Ausland beschäftigten Mitarbeiter zu fungieren, oder eine PEO beauftragen, als Arbeitgeber einzuspringen.

Question 4

Wofür haftet der Employer of Record?

Accepted Answer

Die Verantwortlichkeiten können von Land zu Land unterschiedlich sein und umfassen alle Aufgaben der Personalverwaltung: Arbeitsvertragsangelegenheiten, Lohnbuchhaltung, Einhaltung der Steuergesetze, Verwaltung der Sozialversicherung, Kostenabrechnung, Einstellung, Kündigung etc.

Question 5

Wie schnell ist es möglich, ins Ausland zu expandieren?

Accepted Answer

In der Regel dauert es einen Monat, bis Mitarbeiter im Ausland beschäftigt können, sofern Sie sich für eine PEO bzw. einen Employer of Record entscheiden. Die Gründung einer neuen Tochtergesellschaft, die als Arbeitgeber fungiert, nimmt zwischen 4 und 12 Monaten in Anspruch.

Question 6

What does a PEO service cost in China (2023)?

Accepted Answer

A high-quality PEO services provider will take care of every necessary HR function from payroll to contract management and tax compliance assurance, all for a single monthly fee based on the salary of your co-employed workers.

Question 7

Is an Employer of Record a legal option in China?

Accepted Answer

Yes, EORs give you a safe, legal way to hire or transfer employees in China, either long-term or while you take the time to set up a company structure.

Question 8

How are Chinese salaries and payroll organized?

Accepted Answer

Salaries and payroll in China are typically paid monthly, with many companies offering a 13^th-month bonus. Employers are then responsible for deducting payroll taxes and employee social insurance contributions on behalf of their workers.

Question 9

How expensive is recruitment in China in 2023?

Accepted Answer

Recruiting and employing new workers in China means not only paying their salary, but also providing for indirect costs such as social insurance contributions, plus any bonuses or incentives.

Question 10

Can a Chinese Employer of Record employ personnel on my behalf everywhere in China?

Accepted Answer

Yes, while labor regulations differ across the various cities and provinces in China, an EOR can take care of employment requirements wherever you need workers to operate.

Question 11

How easy is it to modify the requirements of employment contracts in China?

Accepted Answer

All changes to employment contracts in China need to be agreed upon with the employee. Trying to change contracts unilaterally can lead to severe fines, with companies also typically being ordered to pay for damages.

Question 12

What are the necessary employer responsibilities I should be aware of in China?

Accepted Answer

Employers in China are responsible for many things, including providing a safe working environment, managing payroll deductions, and ensuring that worker contracts meet the national minimum standards.

Question 13

Do I need to pay taxes or social contributions for my employees in China?

Accepted Answer

Yes, in addition to paying taxes, companies must take care of both employee and employer contributions to China’s social insurance system which includes 6 different payments (called the “5+1” system). The exact amounts for these contributions vary depending on the city or administrative district.

Question 14

How many staff members can I employ internationally via a PEO partner?

Accepted Answer

Some PEO companies may set minimums or maximums on the number of staff you can employ through their services. However, with INS Global you can manage as many or as few workers as you need for your expansion strategy.

Question 15

What does it cost to fire an employee in China?

Accepted Answer

Severance pay is not mandatory in China for dismissal with just cause. Standard severance pay for other forms or dismissal amounts to the equivalent of one month’s salary for each year of service.

In cases where employees successfully claim unfair dismissal, companies may be severely fined and/ or made to pay additional compensation.

Question 16

Do workers in China require a physical workspace?

Accepted Answer

Both remote work and “work from home” are available options for employees in China. While companies must have a physical address, employees can work in whatever way is most suitable (with the agreement of their employer).

Question 17

Can INS Global help me to recruit new employees in China?

Accepted Answer

Absolutely, our recruitment experts are well-versed in local benchmarks and best practices, with access to professional recruitment resources and networks both online and offline.

Recruitment platforms in China are not usually expensive but may require a small fee from employers.

A professional recruitment agency or provider in China will typically charge a recruitment fee based on a percentage of the new hire’s monthly gross salary.

Question 18

In China, how many public holidays do employees get? Are they paid?

Accepted Answer

There are 7 official paid public holidays in China. Some of these are based on the lunar calendar so change every year. In addition, holidays in China may be adapted to incorporate weekends (called “golden weeks). However, in these cases, employees are expected to make up for extra days by working on surrounding weekends.

Question 19

What dangers exist for a worker in China?

Accepted Answer

Despite improvements in recent years, workers‘ rights in China vary. While workers are nominally very protected by employment law, foreign employees may find it difficult to traverse the legal system. Work visas are also tied to a single employer and role, increasing the complexity for non-native employees to transition to new positions.

Question 20

Which dangers exist for an employer in China?

Accepted Answer

Employers in China must navigate complicated legal and national requirements to maintain compliance. Meeting all employer responsibilities in China is time-consuming and difficult, and companies are constantly at risk of changes to regulations that come abruptly, often with little to no warning. Failure to assure legal compliance can mean serious fines or penalties, or even criminal charges.

Question 21

Can a 2023 PEO in China employ both Chinese citizens and foreigners?

Accepted Answer

Yes, options exist to simplify employment functions for both Chinese citizens and foreigners.

PEO & Employer of Record in China

Global Personal einstellen. Lokal bezahlen. Schnell expandieren.