China allows several types of employment contracts, but the rules differ significantly from those in France. Here is a clear and up-to-date (2025) summary:
1. CDI (open-term contract) — 无固定期限合同
This is the most protective type of contract for employees.
When is an open-term contract mandatory?
An employer must offer an open-term contract when:
- The employee has already worked 10 years for the company, or
- The employee is reaching the third contract after two fixed-term contracts (i.e., after two CDDs), or
- The employer fails to sign a written contract within the first month of employment (the contract becomes a de facto open-term contract).
Key point:
An open-term contract is not a lifetime contract, but it becomes very difficult to terminate, as dismissal must strictly follow legally permitted grounds.
2. CDD (fixed-term contract) — 有固定期限合同
This is the most common type of contract in China.
Key features:
- The duration can be freely determined (usually 1 to 3 years).
- It can be renewed, but only twice — after that, the employer must offer a CDI.
- The contract ends automatically at the scheduled expiry date, with no severance unless an exception applies (e.g., protected employee).
Why widely used?
Because it provides more flexibility in a system where dismissal is heavily regulated.
3. Project-based or task-based contract — 以完成一定工作任务为期限
The contract ends when a specific project or task is completed.
Examples:
- construction site work
- implementation of an IT system
- defined R&D phase
This option is legal but requires a clear, measurable objective.
4. Common requirements for all contracts
Employment contracts in China must be in writing and must include at least:
- identity of both parties
- job role / work location
- contract duration
- salary
- working hours and rest periods
- social insurance contributions
- company rules and policies
The contract must be signed within the first month.
Otherwise:
- the employer must pay double salary as a penalty,
- and the employee automatically becomes permanent (CDI) after one year.
5. Maximum probation period
The probation period depends on the contract duration:
| Contract duration | Maximum probation period |
| < 1 year | 1 month |
| 1–3 years | 2 months |
| > 3 years / CDI | 6 months |
Certain low-wage roles cannot have a probation period.
6. No “false freelance” arrangements
Hiring someone as an “independent consultant” while exercising employer control is illegal.
If the relationship reflects subordination, it must be treated as employment.
For any information, please contact our team to info@opkofinance.com.
