New Hires in China? Here’s What You Need to Know About Probation 

Congratulations! You’ve hired a staff member in China. They look perfect on paper, their interview was stellar, and their references check out. But let’s face it – you never truly know until they’re in the role. 

Luckily, China has clear probation rules that can help protect your business interests while you get to know your new hire. Here’s what you need to know: 

What Exactly is a Probation Period in China? 

Think of it as a mutual trial period, but one that needs careful preparation. It’s not just about seeing if someone’s a good fit – it’s a legally protected period where both sides have specific rights and obligations. 

And yes, you can terminate during this time, but you’ll need solid evidence of poor performance or misconduct. 

Before Your New Hire Starts, You Must: 

  • Create detailed, measurable KPIs – vague goals won’t protect you legally 
  • Write a crystal-clear job description listing all responsibilities 
  • Prepare a proper training schedule 
  • Document everything in Chinese and English 

Employer Tip: Have your new hire sign off on these performance expectations as part of their contract. This single step could save you countless headaches if things go wrong. 

How Long is the Probation Period? 

It depends on your contract length – anywhere from 1 to 6 months. 

Contract LengthMax Probation Time
Under 3 monthsNo probation allowed
3-12 months1 month
1-3 years2 months
3+ years or open-ended6 months

Want maximum flexibility? Consider a three-year contract – it gives you the longest possible probation period of six months. But here’s the trade-off: longer contracts mean more compensation if things go wrong after probation ends. 

You’ll need to weigh up the benefits of a longer evaluation period against the potential costs of early termination later. Many companies find the extended probation worth the risk, but it’s not a one-size-fits-all solution.

How Much Do I Need to Pay During Probation? 

During probation, you can pay 80% of the agreed final salary, but watch out – it must still be above: 

  1. The local minimum wage 
  2. The lowest salary for similar positions in your company 

Real World Example: 

Let’s say you’ve agreed to a final salary of 15,000 Chinese yuan per month: 

  • 80% would be 12,000 yuan 
  • But if your company’s lowest salary for that position is 13,000 yuan 
  • Then 13,000 yuan is your minimum probation salary  

Can I Fire Someone During Probation?

If things aren’t working out, you might think probation gives you an easy exit strategy. Not quite. While termination during probation is simpler than during regular employment, you’re not off the hook completely. 

Here’s the deal: 

You’ll need legitimate reasons to terminate – vague “not a good fit” explanations won’t cut it.

CategoryValid Reasons
Performance IssuesCan’t meet basic job requirements (despite training)  
Remains incompetent after training or role adjustment  
Causes serious financial loss to company 
DishonestyLied on their application or CV
Committed fraud when signing the contract
Working another job that harms your business
Serious MisconductBreaking major company rules  
Criminal behaviour
Serious violations of company policies
Health Issues Unable to work after illness or injury (following legal procedures) 

Warning: Document everything! Each of these reasons needs solid evidence to stand up in a labour dispute. 

Create a clear paper trail of training provided, feedback given, and any warnings issued. 

The employee can leave too: 

  • They only need to give three days’ notice 
  • They can walk if you’re not meeting the agreed terms 
  • No compensation is needed from their side 

Employer Tip: Set clear, measurable KPIs from day one. It makes any necessary termination much smoother and protects you legally. 

Can I Use Another Probation Period After Promotion? 

You get exactly ONE probation period per employee, full stop. It doesn’t matter if: 

  • They’re promoted to a completely different role 
  • They transfer to another department 
  • Your company merges with another 
  • They take on entirely new responsibilities 

Employer Tip: Make that first probation period count. Once it’s done, it’s done. Consider using internal temporary assignments or project-based roles to test employees’ capabilities before permanent promotions. 

Simplify Probation Periods with The China Desk 

Let The China Desk by Kinyu take care of your probation period headaches. We’ll: 

  • Set up legally-compliant contracts 
  • Create clear KPIs and evaluation systems 
  • Handle all documentation in Chinese and English 
  • Manage performance reviews 

Whether you’re hiring your first employee or growing your team in China, we’ll help you stay compliant and protected. 

Get in touch today to learn how we can optimise your China hiring! 

Benjamin King

CEO, Kinyu

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