China remains one of the world’s most important hiring markets, offering access to vast talent pools across manufacturing, engineering, technology, R&D, operations, finance, and regional headquarters roles. However, China also has one of the most rigid and strictly enforced employment law frameworks globally. For global companies expanding into China, the probation period is often misunderstood and frequently misapplied.
The probation period in China is explicitly regulated under the PRC Labour Contract Law. It is not a flexible trial phase and does not allow employers to terminate freely. Probation is tightly linked to contract duration, employee protections apply from day one, and termination during probation is heavily scrutinized by labour arbitration committees and courts. Poor handling of probation commonly leads to illegal termination rulings, mandatory reinstatement, back pay liabilities, and administrative penalties.
This 2026 guide explains how the probation period works in China, employee rights during probation, termination rules, statutory duration limits, and how using an Employer of Record (EOR) in China helps global companies hire compliantly without setting up a local entity.
What Is a Probation Period Under Chinese Labour Law?
In China, the probation period is not merely a contractual concept. It is explicitly defined and regulated under the Labour Contract Law, with strict statutory rules governing when probation is allowed, how long it may last, and how termination can occur.
Probation exists to allow employers to assess employee suitability, but it does not suspend labour protections. Instead, it is a highly regulated early employment stage, designed to prevent abuse by employers.
Legal Nature of Probation in China
Under PRC Labour Contract Law:
- Probation must be expressly stated in the written labour contract
- Probation duration is strictly linked to contract length
- Employees are fully protected under labour law from day one
- Termination during probation is allowed only under limited legal grounds
Probation provides limited assessment flexibility, not unrestricted termination rights.
Is Probation Mandatory Under Chinese Labour Laws?
Probation is not mandatory in China. Employers may choose to:
- Include a probation period, or
- Hire employees without probation
However:
- If probation is included, it must comply with statutory rules
- If probation terms violate the law, they are invalid
- Employers cannot impose probation more than once for the same employee
For global employers, incorrect probation clauses are among the most common compliance failures in China.
Typical Probation Period Duration in China
Chinese labour law imposes non-negotiable limits on probation duration based on the length of the employment contract.
Standard Probation Length Under PRC Labour Contract Law
Probation duration is capped as follows:
- Contract term less than 1 year → maximum 1 month probation
- Contract term 1 to 3 years → maximum 2 months probation
- Contract term 3 years or open-ended → maximum 6 months probation
Key restrictions:
- Probation is allowed only once per employment relationship
- Probation cannot be extended beyond statutory limits
- Contracts shorter than 3 months cannot include probation
Any probation clause exceeding these limits is legally invalid.
Salary and Benefits During Probation
During probation:
- Salary must be at least 80% of the agreed post-probation salary
- Salary must not fall below the local minimum wage
- Social insurance contributions are mandatory
- Other statutory benefits apply as usual
Improper salary reduction during probation is a frequent labour dispute trigger.
Employee Rights During the Probation Period in China
A common misconception is that probationary employees have fewer rights. In China, this is incorrect. Employee protections apply fully and immediately.
Statutory Rights That Apply During Probation
Employees on probation are entitled to:
- Minimum wage protection
- Social insurance contributions (pension, medical, unemployment, work injury, maternity)
- Statutory working hours and overtime rules
- Paid public holidays
- Safe working conditions
- Protection against unlawful termination
Labour authorities actively enforce these rights.
Probation and Labour Contract Validity
Even during probation:
- The labour contract is fully enforceable
- Employees may initiate labour arbitration
- Employers bear the burden of proof in disputes
Chinese labour law strongly favors employee protection.
Termination During the Probation Period in China
Termination during probation is legally possible, but far more restricted than most employers expect.
Can Employers Terminate During Probation in China?
Yes, but only if the employer can prove that:
- The employee fails to meet recruitment conditions, and
- Those conditions were clearly defined and communicated in advance
Subjective dissatisfaction or “poor fit” is not sufficient.
Notice and Procedural Requirements
Even during probation:
- Employers must provide lawful grounds for termination
- Written explanation is strongly recommended
- Improper termination often results in reinstatement or compensation
Chinese labour arbitration bodies strictly examine employer evidence.
Common Employer Mistakes That Lead to Illegal Termination
Frequent errors include:
- No clear recruitment standards
- Vague job descriptions
- Terminating for performance issues without evidence
- Improper probation duration or salary treatment
These mistakes regularly result in adverse arbitration rulings.
Managing Performance During the Probation Period in China
Because termination thresholds are high, probation must function as a structured performance evaluation period, not an informal trial.
Using Probation as a Performance Evaluation Period
Best-practice employers:
- Define recruitment and performance standards in writing
- Align evaluation criteria with job descriptions
- Provide feedback during probation
- Maintain clear performance documentation
Documentation is essential to defend any probation-related termination.
Confirming or Ending Employment After Probation
At the end of probation:
- Employment continues automatically if not terminated
- Employers should confirm completion of probation in writing
- Post-probation termination requires stricter legal grounds
Failure to act during probation significantly limits termination flexibility.
Probation Risks for Global Companies Hiring in China
China’s labour law framework presents significant challenges for international employers unfamiliar with local enforcement realities.
Why International Employers Struggle With Chinese Probation Rules
Common challenges include:
- Misunderstanding statutory probation limits
- Applying non-China HR practices
- Lack of Chinese-language documentation
- Insufficient evidence for termination
- Underestimating arbitration risks
Chinese labour arbitration committees strongly favor employees.
How Employer of Record (EOR) Models Reduce Probation Risk in China
An Employer of Record model allows global companies to hire employees in China while transferring employment compliance responsibilities to a local expert.
Using an EOR in China enables companies to:
- Hire without setting up a local entity
- Use PRC-compliant labour contracts
- Structure lawful probation clauses
- Manage social insurance correctly
- Implement compliant termination processes
EOR services significantly reduce legal, financial, and operational risk.
How Asanify Helps Manage Probation Periods in China
Asanify provides end-to-end Employer of Record services in China, supporting global companies across hiring, probation, and compliance.
With Asanify, companies can:
- Hire in China without entity registration
- Use legally vetted, China-compliant labour contracts
- Define compliant probation and recruitment standards
- Manage payroll and social insurance
- Track performance documentation
- Execute lawful probation terminations
- Stay aligned with PRC labour law updates
Asanify enables confident, compliant hiring in China.
Conclusion
Probation in China is a highly regulated employment phase governed by strict statutory rules. It is not a low-risk trial period. Employers must carefully align probation duration, salary treatment, and termination grounds with the Labour Contract Law. Clear documentation and lawful processes are essential. Partnering with an EOR like Asanify allows global companies to hire in China safely and compliantly.
Frequently Asked Questions
What is the probation period in China under labour law?
It is a legally regulated trial period governed by the PRC Labour Contract Law.
How long is a probation period in China?
It ranges from one to six months depending on contract length.
Can an employee be terminated during probation in China?
Yes, but only if the employee fails to meet clearly defined recruitment conditions.
Do probationary employees have rights in China?
Yes. Full labour protections apply from day one.
Is probation mandatory in China?
No. Probation is optional but must comply with strict statutory rules if used.
Can salary be reduced during probation in China?
Yes, but it must be at least 80% of the agreed salary and not below minimum wage.
How does an Employer of Record manage probation in China?
An EOR ensures compliant contracts, probation structuring, social insurance, and lawful termination.
Why should global companies use EOR services in China?
To avoid entity setup, reduce arbitration risk, and ensure full compliance with Chinese labour law.
Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant or Labour Law expert for specific guidance.