China
Interim Provisions on the Protection of the Basic Rights and Interests of Certain Older Workers
Impact date: 1 July 2026 Pursuant to the ‘Interim Provisions on the Protection of the Basic Rights and Interests of Over-Age Workers’ (超龄劳动者基本权益保障暂行规定, the “Provisions”), jointly issued by five authorities including the Ministry of Human Resources and Social Security, China establishes a regulatory framework governing the rights and obligations of employers and individuals working beyond the statutory retirement age (SRA). The Provisions apply to employers in China engaging individuals who have exceeded the statutory retirement age and who remain subject to the employer’s management and perform remunerated work. Retired individuals who are re-employed may also be covered. Key highlights include:
- under the Provisions, employers must enter into written engagement agreements with over-SRA workers setting out key terms, including working hours, remuneration, rest and leave arrangements, occupational protection, and social insurance arrangements. Employers are required to pay wages in full and on time, and remuneration must not fall below the applicable minimum wage standard
- employers must arrange working hours and rest periods in accordance with statutory requirements, and should generally not arrange overtime work. Where overtime is required, it must comply with the relevant provisions of PRC labor laws. Employers must also assign appropriate roles based on workers’ physical condition and must not assign hazardous or unsafe work
- the Provisions require employers to ensure workplace safety and provide occupational health and safety training. In addition, employers must enroll over-SRA workers in work-related injury insurance, with premiums fully borne by the employer. Over-SRA workers are entitled to work-related injury recognition, labor capability assessment, and insurance benefits in accordance with applicable national rules
- with respect to social insurance, over-SRA workers who are already entitled to pension or medical insurance benefits continue to enjoy such benefits while working. Those who have not met statutory contribution thresholds may continue participating in pension and medical insurance schemes either individually or through arrangements with employers
- for dispute resolution, disputes relating to remuneration, working hours and rest, occupational safety, and work-related injury protection fall within the scope of labor dispute resolution procedures. Other disputes may be submitted directly to the courts. Over-SRA workers may also lodge complaints with labor authorities where statutory obligations are not fulfilled
Employer implications/action needed Employers should implement written engagement agreements with over-SRA workers, ensure compliance with PRC labor law requirements on wage payment and working hours, provide appropriate workplace assignments and safety training, and complete enrolment in work-related injury insurance.
Employer risk Failure to comply with statutory wage payment, working hour arrangements, occupational safety obligations, or work-related injury insurance requirements may result in administrative liability and increased exposure to disputes.
Local Guidelines for Unilateral Termination of Employment by Employers in Beijing
Impact date: 11 August 2026 On 11 August 2026, the Beijing Federation of Trade Unions, the Beijing Municipal Human Resources and Social Security Bureau, and several other government authorities jointly issued the Guidelines for Regulating Employers’ Unilateral Termination of Employment Contracts (Trial) (规范用人单位单方解除劳动合同工作指引（试行）, “Guidelines”). The Guidelines clarify the procedures and related obligations for employers when notifying the trade union of a proposed unilateral termination of an employment contract.
Specifically, where an employer intends to unilaterally terminate an employment contract, it must provide the trade union with written notice setting out the grounds for termination at least five working days in advance. If the trade union considers that the proposed termination violates applicable laws, regulations or the terms of the employment contract, it may, within five working days of receiving the written notice, put forward its opinions and recommendations. The employer is required to consider the trade union’s views and provide the trade union with a written response setting out the outcome of its review. Where the employer has not established a trade union, it must fulfil the relevant notification obligations by notifying the higher-level trade union.
Employer implications/action needed Although the relevant judicial interpretation permits an employer to rectify the trade union notification procedure before the employee initiates legal proceedings, it remains unclear how this remedial mechanism will be reconciled in practice with the new Guidelines’ requirement that the trade union be notified in advance of a unilateral termination. This issue will likely need to be clarified through future arbitration and court practice. For employers in Beijing, the prudent approach is to comply with the advance notification requirements set out in the Guidelines.
Significant Change to Local Rules on Sick Leave Pay in Shanghai
Impact date: 16 August 2026 The historical local regulation governing sick pay rates in Shanghai expired on 15 August 2026 and, as of the date of this update, no replacement regulation or extension has been issued by the local government. As a result, the Shanghai-specific sick pay regime, under which sick pay was calculated at between 40% to 100% of an employee’s salary depending on the employee’s continuous length of service with the employer, no longer appears to apply. Instead, the national-level rules will apply, which prescribe only a statutory minimum sick pay standard of 80% of the local minimum wage (currently RMB 2,740 × 80% in Shanghai).
Employer implications/action needed Employers should review their employee handbook and internal policies to identify any provisions that incorporate or mirror the historical Shanghai sick leave pay formulae. Where the handbook or relevant policy expressly adopts the now-expired local rules (which is common in practice), employers should continue to apply those provisions when administering sick leave unless and until they are validly amended, rather than directly applying the national minimum standard.
When revising sick leave pay policies, employers may consider adopting lower sick leave pay entitlements (provided they remain above the statutory minimum standard), or aligning sick leave pay with the statutory minimum standard, taking into account their business needs and workforce management considerations. Such changes may help employers better manage sickness-related employment costs and reduce incentives for potential abuse of sick leave arrangements.
Sick leave pay concerns employees’ immediate interests. Therefore, from a procedural perspective, any amendments to the employer’s internal rules and policies governing sick leave pay, particularly where it reduces the level of sick pay previously available to employees, should undergo the statutory “democratic and publication procedures” in accordance with Article 4 of the PRC Employment Contract Law (i.e. collective consultation with trade union or, where no trade union is established, all employees) to make them effective and binding on all employees.
Employer risk For employers whose employee handbook or relevant policies expressly adopt the historical Shanghai sick leave pay formulas, directly applying the national minimum standard without first amending the applicable handbook or policy and completing the statutory consultation procedures may expose the employer to claims for any shortfall in sick leave pay. Affected employees may also terminate their employment on the basis that the employer has failed to pay remuneration in full and on time, and claim statutory severance pay accordingly.
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Local Procedural and Documentation Requirements for Economic Redundancy in Shanghai
Impact date: 16 August 2026 – 15 August 2031 On 21 July 2026, the Shanghai Municipal Human Resources and Social Security Bureau issued the Notice on Issuing the Revised Notice on the Reporting of Workforce Reductions Implemented by Employers in Accordance with Law (《关于印发修订后的<关于用人单位依法实施裁减人员报告的通知>的通知》), which took effect on 16 August 2026 and will remain effective until 15 August 2031. The Notice further refines the procedural and documentation requirements applicable to employers implementing an economic redundancy pursuant to Article 41 of the PRC Employment Contract Law (i.e., the dismissal of 20 or more employees or at least 10% of the workforce, under one of the prescribed statutory circumstances).
Employer implications/action needed Employers in Shanghai should ensure that any economic redundancy is carried out in compliance with the procedural and documentation requirements set out in the revised Notice.
Employer risk Failure to comply with the applicable procedural requirements may result in the relevant termination being found unlawful should a dispute arise. As a result, the employee would be entitled to reinstatement or, if reinstatement is not possible or is not requested by the employee, statutory compensation equal to twice the statutory severance pay.
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