Probation Period Should Be Included In Chinese Labor Contracts

China's Labor and Social Security Department has issued a reminder in local media to new college graduates that their probation period should be included in labor contracts with employers as part of their employment term and the trial use period must not be more than six months.

Specifically, the Tianjin Municipal labor and Social Security Department has said that the probationary period is for the employer and the employee to mutually understand each other and make a mutual decision. According to relevant laws, a probationary period shall be set between an employer and its employee, but the period should be included in the formal labor contract.

According to China's new Labor Contract Law which is going to take effect on January 1, 2008, the probationary period must not be more than 1 month if the labor contract term is less than one year, and the probation period should not be over two months when the contract period is less than three years. The probation period for a labor contract whose term is more than three years should be less than six months.

In addition, the employer should only set one probation term with the employees, and during the probation period, the employer must offer social insurance for employees.