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The article reports on issues that foreign employers should consider when drafting and signing employment contracts in China. The Employment Contract Law requires that an employment contract must have certain terms like the identity information of both parties and social insurance. A template can be utilised in any province without being challenged. A Chinese translation of the contract will be necessary because of the requirements of the arbitral tribunal or court in case a dispute arises.

The article discusses the regulatory developments in China as of mid-2013. It cites the confusion by employers in dealing with the amended Employment Contract Law due to the lack of implementing regulations. The Ministry of Human Resources and Social Security (MOHRSS) also failed to release the percentage of dispatch workers that a company is allowed to use.

The article reports that the Ministry of Labor focuses on improving the administration of labor justice in Great Britain. It mentions that the efforts include removal of employment contracts for justified cause, collective suspensions and business closures. It mentions that the National Labor Court of Appeals established in 2011, was formed to offer legal certainty to employers and workers.

The article reports that several employers have mentioned their uncertainty in structuring non-compete clauses despite the implementation of the Employment Contract Law in 2008 in China. Lawyer May Lu explained that several employers fail to take the necessary measures to protect information contained in the law and are not always aware of its strict requirements. She added that reasonable compensation is important in non-compete agreements. The key provisions of the law are provided.