Let's talk about how to write a complete and effective employment contract!

　　How to Draft a Complete and Effective Employment Contract?

　　Companies typically sign employment contracts with newly hired employees, and in the event of future disputes between the company and the worker, the employment contract often serves as the basis for resolving those conflicts. Therefore, drafting a legally sound and effective employment contract is directly tied to a company’s legitimate interests. So, how can businesses ensure their employment contracts are both lawful and enforceable? Let’s find out together—stay tuned!

　　Legally Required Clauses in Employment Contracts: I.

　　Essential clauses are the provisions that must be included in a legally valid employment contract. If the essential clauses in an employment contract are incomplete or improperly formulated, the contract cannot be established—potentially leading to significant losses for the company. Therefore, understanding these mandatory clauses is crucial for businesses. But exactly what constitutes an essential clause in an employment contract?

　　According to the law, an employment contract must include the following clauses:

　　1. The name, address, legal representative, or principal person in charge of the employer.

　　2. The worker's name, address, resident identity card number, or other valid identification document number.

　　3. Term of the Employment Contract: Generally, when companies enter into employment contracts with workers, they must clearly specify the duration of employment in the contract—whether it’s for one, two, or three years—with start and end dates explicitly stated. If no specific term is agreed upon, the contract should be considered open-ended. In such cases, unless the company has a valid legal reason, it is prohibited from dismissing the employee.

　　4. Job Description and Workplace: When an employer signs a labor contract with an employee, the job responsibilities must be clearly outlined in the contract—such as specifying which position the company is hiring for and exactly what tasks the employee will be responsible for. Additionally, the job description should explicitly state the workplace. The location of the workplace is also crucial: it must be clearly defined in the labor contract. Employers are not permitted to unilaterally change the agreed-upon workplace specified in the contract; otherwise, they may face legal liability without the employee’s consent.

　　5. Working Hours, Breaks, and Leave: Employers are required to clearly specify working hours in the employment contract, ensuring they do not exceed the legal limits of no more than 8 hours per day or an average of 40 hours per week. Additionally, leave policies should also be explicitly outlined in the contract, such as when employees can take their annual leave and how maternity leave for female workers is structured.

　　6. Compensation for Labor: Compensation is crucial and a key concern for every worker. Imagine this: if a company fails to clearly outline the labor compensation that employees care about when signing their contracts, would workers feel secure staying with the company? Therefore, companies should explicitly state the agreed-upon labor compensation in the employment contract.

　　7. "Five Social Insurances and One Housing Fund": According to national regulations, employers are required to contribute social insurance for their employees, including pension insurance, unemployment insurance, medical insurance, work-related injury insurance, and maternity insurance.

　　Additionally, what we commonly refer to as the "Five Insurances and One Fund" includes the five insurance schemes mentioned earlier, along with the housing provident fund. The housing provident fund is also a mandatory contribution, so employers should pay special attention when drafting employment contracts.

　　8. Occupational Safety, Working Conditions, and Protection Against Workplace Hazards: Typically, occupational safety isn’t given as much priority as regular job duties, which is why most companies tend to overlook these provisions. However, for certain specialized industries—such as those involving toxic or hazardous materials, or environments with extreme heat and pressure—workers in high-risk occupations like machinery operation, offshore work, or aviation face significant dangers. For these sectors, such clauses are especially critical. To safeguard workers’ health and safety, the government has made them an essential component of employment contracts.

　　9. Other matters that laws and regulations stipulate must be included in employment contracts: This is what we commonly refer to as the "multi-clause provision," meaning that as the country implements labor laws in practice, new issues may arise, prompting the creation of fresh regulations.

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