Company's Leave Policy in China

Types of Leave

Ø        Public Holidays

Public Holidays are the holidays which are prescribed by country law to celebrate the holidays, pursuant to the prevailing national and/ or ethnic groups’ customs or commemoration requirements.

Ø        Annual Leave

The regulations on paid annual vacations stipulate that all employees of State organs, organizations, enterprises, institutions, people-run non-enterprise unit and sole proprietorships are entitled to take paid annual vacations after serving the employer exceeding one year.

Ø        Medical Leave

Due to illness or injury from work, the employee who needs to stop working to undergo a medical diagnosis, the employer is required to entitle the employee with medical treatment period, according to the number of years he/she has actually worked as well as service period for the employer.

Ø        Maternity Leave

Maternity leave refers to the benefits entitled to female employees before and after she gave birth. Normally it is from half-month before delivery to 2.5 months after delivery. The maternity leave can be extended to 4 months for late marriages and late childbirth. Therefore, female employee is entitled to no less than 90 days maternity leave.

Ø        Others

Some enterprise will provide other types leave as benefits for employees e.g. Marriage Leave in Shanghai

Introduction to Leave Benefits Pursuant to PRC Labor Law

Medical Leave

•     The medical treatment period is 3 months when the employee work in the company during the first year. The medical treatment period will be extended by 1 month for each year of work period by the employee. The longest period shall not exceed 24 months.
•   Due to illness or injury from work, the employee who stops working in order to take a medical diagnosis, shall not be terminated by the employer for such reason.
•  Due to illness or injury from work, when the employee is on medical leave for 6 months, the standard pay by the employer is as different proportions stipulated.

Maternity Leave

•       During the maternity leave period, employers should continue to pay female employee’s social contributions, but do not have to pay their salary. Female employees can apply for subsidy from any social insurance bureau in Shanghai.
•      Female employees who are pregnant over 7 months can apply for 2,5 months of pre-maternity leave. If their application has been approved, they should be paid 80% of the salary stated in their contract. Moreover, during this period, the employer cannot arrange overtime work for female employees.
•      Female employees who still find it difficult to work after the maternity period can apply for six and a half months breast-feeding leave; when their leave is approved by the employer. If their application has been approved, they should be paid 80% of the salary stated in their contract.
•       During the period of maternity leave, the employer shall not terminate the labor contract.

Control Point of Implementing Leave Application Procedures

Ø        When the employee applies for leaves, he/she is required to fill in the leave application form and submits it for the department head‘s approval.

Ø        Normally, the procedure of approval could be conducted in 2 steps. The department head shall decide whether or not he/she is eligible to take the leave based on the work load situation. When the application has been approved by department head, the leave application form shall be submitted to HR department for final approval. HR department’s decision is determined by the employee’s qualification. If their application has been approved by HR, the employee shall enjoy the leave.

Ø        The employee must ensure prior-to-leave work arrangement after his/her leave application is approved.

Ø        The employee should inform his/her department head, the contact method (in case of urgent matters) before going for the leave.

Case Study

Lily was pregnant on 20th May 2011. The expected date of childbirth is 31st January 2012. Lily went to the hospital for prenatal examination. Lily provided the certificate of health examination according to the company leave policy, when she applied for the maternity leave. According to the relevant law policies, the prenatal examination shall be paid as normal attendance.

Lily applied for the maternity leave on 24th Jan. 2012. On 1st Feb. 2012, she gave birth to a baby. As Lily is a late-marriage and late-childbirth case, so she can apply for 120 days maternity leave. When the maternity leave ended, she shall provide the related hospital certificate to apply for the additional maternity leave.

Related Links

• How the New Social Insurance Law Impacts Foreign Enterprises and Foreign Employees