Doing business in China consists of several stages. In addition to company registration, setting up the whole business process, finding an office, you will also need staff.
According to the Chinese legislation, companies with foreign capital can independently hire local residents or invite foreign specialists.
Representative offices of foreign companies are not legal entities, and according to the law, cannot directly hire Chinese personnel, the number of foreign employees is also limited.
Employment of local workers in foreign representative offices is carried out by authorized firms, in accordance with the laws of China. Among the well-known companiesareCiecco, FESCO, China Star – large state-owned corporations, responsible for signing contracts with the employees, calculating salary and payments to social funds, as well as protecting the interests of the employees. As a rule, the above mentioned companies are used to formalize employment relations with employees, and the representative office can find employees independently, as well as companies with foreign capital.
Foreign investors need to understand that the search for a competent employee is complicated by a number of factors:
| In China, the use of the Internet is limited, many global HRweb-sites are not available; | Only a company with a valid license can access to Chinese online personnel recruitment resources; |
| In some industries there is a shortage of human resources, so these specialists in the market can be overestimated; | Lack of knowledge of Chinese, communication difficulties do not allow to fully assess the abilities of the employee, conduct interviews, prepare a labor contract. |
Features of the Chinese personnel
1. In China, a large percentage of specialists are of medium and high qualification: a well-developed educational system allows locals to work in large foreign firms and gain work experience while working abroad.
2. In the performance of their duties, the Chinese are highly skilled and competent in the field in which they work.
3. It is also important to bear in mind that Chinese employees are highly specialized, it can be very difficult to find a specialist who is competent in several fields.
This means that it is easier to find a regional sales director than to find a marketing director with experience in sales.
Well, what to do? And how can I hire an employee in China?
UGL Corporation recruits personnel in China for firms with foreign capital and representative offices of foreign companies, conducts personnel testing, prepares labor contracts, and provides information support on the Chinese labor code.
Advantages of recruitment by UGL Corporation
1. Recruitment for highly specialized personnel working in a particular industry;
2. Interview and testing of candidates for knowledge of English or another foreign language. Professional qualification assessment. This point is important, especially if the specialist will take part in negotiations with clients or represent the company in other Chinese provinces;
3. Preparing an employment contract for a probation period and official employment contract in accordance with the Chinese law;
4. Providing information and advice connected with the labor law;
5. Advising on the amount of wages and payments to social funds for ordinary employees, middle and senior managers in each province of China.
Cooperation in the field of HR in China is carried out as following:
1. Entering into an agreement for personnel recruitmentbetween a foreign company and UGL Corporation.
2. Selection of at least five candidates, conducting meetings in person or Skype interviews with them.
3. Recommendationfor the sum of wages and terms of the employment contract for a trial and official period.
4. Making an offer and preparing an employment contract.
5. Payment for UGL Corporation services
After signing an employment contract with an employee in China, the foreign company is obliged:
1. Pay the salary in time;
2. Pay necessary taxes;
3. Make payments to social funds: pension fund, obligatory medical insurance fund and other social funds protecting the rights and interests of the employees. The amount of deductions depends on the city where the company or the employee is located. It should be taken into account that if an employee works remotely, the company will not be able to make social payments for him in his city, our company will help to solve this problem. Thus, a system of work of sales representatives can be built up in those cities of China, where your company doesn’thave anybranches.
In addition to the search for qualified employees and signing of an employment contract, the duties of our company are:
1. Preparing a work card and registration with the PRC’s Human Resources Department;
2. Calculation of basic social payments, such as payments to the pension fund, assisting with medical insurance, foreign passports and others.
3. Personnelassessmentandteambuilding
4. HR management.
Cooperation with UGL Corporation will help your company to find highly qualified employees in China, conclude an employment contract with them on a favorable basis and protect the rights of the employer and an employee, according to the Labour Code of the People’s Republic of China. Contact our managers and experienced HR department managers will provide a free consultation to you.
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