China Employer Audit Costs Fees

Complying with Chinese laws is the sine qua non for avoiding trouble in China. See China’s New Company Tracking System: Comply, Comply, Comply. Foreign companies that realize this have, among other things, been striving too clean up their employment practices to prevent employee conflagrations that can in turn lead to problems with the Chinese government.

The other day, one of our China employment lawyers cc’ed me on an email sent to a potential client, setting out what we need to be able to give a cost estimate for a China employer audit. I give you that email as I believe it could prove very helpful to any foreign company in China concerned about complying with China’s complicated and localized employment laws. In particular, just the number of documents that foreign companies with employees should have illustrates how complicated it is just being an employer in China and how many avenues there are for things to go wrong.

Thanks for reaching out to us.
For us to get a better understanding of your China employment situation and to better estimate costings for a China Employer Audit, it would be great if we could first ask you a few questions as well as take a quick look at your existing China employment documents.

In a comprehensive document-based China Employer Audit, we will want to review the executed copy of every document signed by an employee, including each individual employment contract, along with any employment-related templates or forms used in the employer’s China office. We usually request all written employment documents used in the employer’s China office, which usually includes any of the following:

  • Employment contracts
  • Employee handbook
  • Documents containing job descriptions, including any postings on internal or external websites
  • Offer letters
  • Company policies, such as travel expense policy, employee vacation/leave policy, overtime policy, rewards policy, discipline policy, and dismissal policy
  • Non-compete agreements
  • Intellectual property protection and/or confidentiality agreements
  • Education or training reimbursement agreements
  • Bonus plans or policies
  • Termination forms/agreements
  • Other employment-related agreements (including company policies) presented or signed by any company representative, or signed by any employee
  • Any documents filed with the local labor authorities

It would also be good if you could send us a copy of your Chinese company’s business license and also an organizational chart of your China office, including a list of all Chinese and non-Chinese employees. Once I get a better sense of your existing China employment documents, I can provide you with a fee estimate for the China Employer Audit.

I look forward to hearing from you.

Print:
EmailTweetLikeLinkedIn
Photo of Dan Harris Dan Harris

Dan is a founder of Harris Bricken, an international law firm with lawyers in Los Angeles, Portland, San Francisco, Seattle, China and Spain.

He primarily represents companies doing business in emerging market countries, having spent years building and maintaining a global, professional network. 

Dan is a founder of Harris Bricken, an international law firm with lawyers in Los Angeles, Portland, San Francisco, Seattle, China and Spain.

He primarily represents companies doing business in emerging market countries, having spent years building and maintaining a global, professional network.  His work has been as varied as securing the release of two improperly held helicopters in Papua New Guinea, setting up a legal framework to move slag from Canada to Poland’s interior, overseeing hundreds of litigation and arbitration matters in Korea, helping someone avoid terrorism charges in Japan, and seizing fish product in China to collect on a debt.

He was named as one of only three Washington State Amazing Lawyers in International Law, is AV rated by Martindale-Hubbell Law Directory (its highest rating), is rated 10.0 by AVVO.com (also its highest rating), and is a recognized SuperLawyer.

Dan is a frequent writer and public speaker on doing business in Asia and constantly travels between the United States and Asia. He most commonly speaks on China law issues and is the lead writer of the award winning China Law Blog. Forbes Magazine, Fortune Magazine, the Wall Street Journal, Investors Business Daily, Business Week, The National Law Journal, The Washington Post, The ABA Journal, The Economist, Newsweek, NPR, The New York Times and Inside Counsel have all interviewed Dan regarding various aspects of his international law practice.

Dan is licensed in Washington, Illinois, and Alaska.

In tandem with the international law team at his firm, Dan focuses on setting up/registering companies overseas (via WFOEs, Rep Offices or Joint Ventures), drafting international contracts (NDAs, OEM Agreements, licensing, distribution, etc.), protecting IP (trademarks, trade secrets, copyrights and patents), and overseeing M&A transactions.