Supply chain disruptions, economic challenges and post-COVID reservations are pushing companies to rethink their China ops.
While China remains a key node in the global supply chain, firms are increasingly cautious about maintaining large, permanent workforces.
Yet, as many have discovered these past few years, you can’t just up and leave China. Relocating to, say, Southeast Asia is often impractical and expensive.
This dilemma has led many to seek flexible staffing solutions that maintain their presence while reducing risks. Hence, we’ve seen a surge in inquiries about part-time hiring as a potential answer.
On paper, it’s appealing:
- Keep your foot in the door in China
- Avoid long-term commitments
- Potentially save on costs
Sounds perfect, right? Well, not so fast…
Part-time hiring in China, while appealing, comes with its own set of complexities.
How Does China Define Part-Time Work?
Part-time employment only gained official recognition in Chinese labour law in 2008.
Despite this, strict limits apply to part-time work in China:
- Max 4 hours per day
- Max 24 hours per week
Important: Workers can claim full-time status if these limits are exceeded.
China’s approach differs significantly from other countries. For instance, the U.K. has no specific hour threshold defining full or part-time status, while the U.S. sets the part-time maximum at 30 hours per week.
Employers should set realistic expectations for part-time workers in China, keeping in mind these strict time limits.
We strongly advise tracking hours meticulously. Proper documentation is crucial, as without it, workers might claim full-time status during disputes, potentially leading to legal issues.
Do Part-Time Employees Need a Contract?
While oral contracts are legally acceptable for part-time employment in China, having a written contract is strongly recommended.
And don’t simply modify a full-time contract by reducing hours. Instead, create a tailor-made contract that clearly outlines:
- Duration of employment
- Job responsibilities
- Compensation details
Unlike full-time positions, part-time roles in China do not have a probation period. Instead, employers can terminate part-time workers at any time without cause. However, part-time employees can also leave their position at any time.
REMEMBER: Relying heavily on part-time employees may pose a risk due to the ease with which either party can end the working relationship..
Social Insurance and Liability for Part-Time Workers in China
Social Insurance
Social insurance in China is a comprehensive system that provides various benefits to employees. For part-time workers:
- Only work-related injury insurance is mandatory for part-time employees
- The other components of social insurance (pension, medical, unemployment, maternity) are not mandatory for part-time workers
- However, while not mandatory, some employers may choose to offer additional benefits to part-time employees as a way to attract and retain talent
Employer Liability Insurance
This insurance protects your business against claims from employees for work-related injuries or illnesses. While not mandatory, it’s highly recommended:
- Covers claims for personal injury or accidents during employment
- Essential protection against potential legal claims
- Applies to part-time workers, freelancers, and even clients who might injure themselves in your facility
CRUCIAL: Without this insurance, you're exposed to potentially significant financial risks if anyone is injured on your premises.
Managing Part-Time Employees in China from Abroad
Part-time employees can be valuable assets, but managing them effectively, especially from another country, requires careful consideration.
Focus:
- Part-time staff often juggle multiple jobs or responsibilities
- Your work will not be their sole focus.
Availability:
The strict hourly limits on part-time work in China further complicate management.
If you need to contact your part-time employee outside their regular working hours (which is likely due to time zone differences), any work-related communication could count towards billable hours.
This situation risks pushing the employee over the part-time threshold, potentially exposing you to full-time status claims.
Moreover, if an urgent matter arises and the employee has already worked their four hours that day, you’ll be in a difficult position. You’ll either have to wait until the next day or risk exceeding the legal part-time work limits.
Full-Time Vs. Part-time
As a roundup, here are the key differences between full-time and part-time employment in China:
| Aspect | Full-Time Employees | Part-Time Employees |
|---|---|---|
| Working Hours | Typically 40 hours per week | No more than 4 hours daily, 24 hours weekly |
| Contract | Written contract required | Oral agreement allowed, but written contract recommended |
| Probation Period | Allowed | Not allowed |
| Payment Cycle | Generally monthly | Must not exceed 15 days |
| Payment Basis | Monthly salary | Hourly rate (must meet local minimum wage requirements) |
| Social Insurance | Employer must contribute to several insurance funds | Employer only required to cover work-related injury insurance |
| Termination | Typically requires notice and justification | Can be terminated at any time without notice or justification |
| Severance Pay | Required in many cases | Not required |
| Multiple Jobs | Generally not allowed | Allowed to have multiple part-time jobs |
| Annual Leave | Typically provided | Not typically provided |
Simplifying Part-Time Staffing with Kinyu’s Streamline Model
While part-time staffing offers flexibility, navigating China’s complex labour laws is often tricky. The China Desk – Streamline Model provides a hassle-free alternative:
Key Benefits:
- Access to Kinyu’s internal supply chain managers
- Flexible engagement: 5-10 hours per week
- Direct supplier representation
- Full compliance management handled by Kinyu
- Priority management aligned with your needs
Our Streamline Model gives you the advantages of part-time staff without the legal complexities. Kinyu’s full-time employees work part-time for you, ensuring seamless operations and regulatory compliance.
To discover more about The China Desk – Streamline Model and how it can enhance your business operations, download our case study or schedule a call with our team.
