Chinese regulations provide for a standard working hours system consisting of five eight-hour work days and two rest days (usually Saturday and Sunday) per week. As Guangzhou employment lawyer and Guangzhou labor dispute lawyer, we have entensive experience in providing employment law service to foreign invested companies in China.
Under the standard working hours system, employees that work over 40 hours per week are entitled to the following compensation:
• Overtime on work days – 150% of normal wages
• Overtime on rest days – compensatory leave or 200% of normal wages
• Overtime on statutory holidays – 300% of normal wages
Before having employees work overtime, employers must consult with the employees and the labor union (if any). Overtime hours generally should not
exceed one hour per day, or three hours per day under special circumstances, and no more than 36 hours per month. However, Chinese law also provides for certain alternative working hours systems.
Upon government approval of an employer’s application, an employer may institute the Comprehensive Working Hours System or the Flexible Working Hours System with regard to employees in certain industries, such as seasonal workers. Under the Comprehensive Working Hours System, employers may require employees to work longer hours during a certain period so long as the average hours worked in that period do not exceed the limit on total hours for that period. If the limit is exceeded, then overtime compensation must be paid. Under the Flexible Working Hours System, an approved employer may require certain staff, such as highranking managerial staff and sales staff, for examples, to work in excess of 40 hours per week without paying overtime compensation. Local rules must be checked in regard to alternative working hours systems.