The Labor Contract Law (《中华人民共和国劳动合同法》), effective since 1 January 2008 and amended in 2012, sets strict rules for written contracts:

- A written labour contract must be signed within one month of employment; failure to do so triggers double-wage liability.
- Fixed-term, open-ended and project-based contracts are all permitted; two consecutive fixed-term contracts generally lead to an open-ended contract on renewal.
- Termination requires statutory grounds; economic compensation (usually N, i.e. one month's wage per year of service) applies in most employer-initiated terminations.
- Probation periods, non-compete and training-service clauses are strictly limited.

Contract management is a standard audit point. CSER Solutions helps factories review contract templates, renewal procedures and personnel files to stay compliant with both Chinese law and brand codes of conduct.