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The probation period is one of the most misunderstood parts of hiring in China. Many foreign employers arrive with the assumption — common in Western markets — that probation means “at-will” employment and that an employee can be dismissed freely before it ends. That assumption is wrong under Chinese labour law, and acting on it is one of the fastest ways to end up in a labour arbitration. Getting probation right matters from the first day you hire employees in China, and it is tightly regulated on three fronts: length, pay, and grounds for termination.
- Probation length is capped by law based on the employment contract term, up to a six-month maximum.
- Probation pay must be at least 80% of the agreed wage and never below the local minimum wage.
- An employer may only set one probation period with the same employee.
- Termination during probation still requires a valid statutory ground; it is not “at-will.”
- Compliant probation terms belong inside a written employment contract, not a separate side agreement.
What Is a Probation Period Under Chinese Law?
Under the PRC Labour Contract Law, a probation period is an optional initial phase of employment during which the employer and employee assess each other’s suitability. Critically, the probation period is part of the employment contract — it is not a separate arrangement, and an employer cannot legally take on a worker “on trial” without a signed written contract. The law sets hard ceilings on how long probation can last, ties those ceilings to the contract term, and limits employers to a single probation period per employee.
Maximum Probation Length by Contract Term
The permissible probation length is tied directly to the length of the employment contract itself:
| Employment Contract Term | Maximum Probation Period |
|---|---|
| 3 months or longer but less than 1 year | Up to 1 month |
| 1 year or longer but less than 3 years | Up to 2 months |
| 3 years or more, or open-ended | Up to 6 months |
For short contracts of less than three months, or for task-based employment, the law does not allow a probation period at all. A company that drafts a compliant contract in the first place — including the correct probation term — avoids the most common drafting defects that surface later in disputes. The rules here are part of the broader set of mandatory clauses in a China employment contract.
Probation Salary Rules
Probation is not an excuse to pay a token wage. Chinese law sets two floors that apply simultaneously:
- The probation wage must be at least 80% of the agreed post-probation wage.
- The probation wage must not fall below the statutory minimum wage for the city where the employee works — such as Guangzhou, Shenzhen, or Dongguan, where minimum wage levels are set and updated locally.
If the agreed post-probation wage is already close to the minimum wage, the 80% rule effectively yields to the minimum-wage floor. Employers who pay a flat low rate during probation, or who delay social insurance enrolment during this phase, expose themselves to wage-claim and compliance risk that can be far more expensive than the small amount they hoped to save.
Can You Terminate During Probation?
Yes, but only on lawful grounds. During probation, an employer may terminate an employee who is proven to fail the job’s recruitment requirements — but “failure” must be demonstrable and documented, not asserted. The employer should show that clear, objective hiring criteria were communicated, that performance fell short of those criteria, and that the shortfall was recorded.
An employer who simply decides an employee “isn’t working out” and lets them go without evidence can be found to have terminated unlawfully, triggering reinstatement or compensation obligations. The same discipline that applies to terminating an employee in China in general applies during probation — grounds and documentation still matter. A probation clause does not convert the relationship into at-will employment.
Common Mistakes Foreign Employers Make
- Treating probation as at-will employment and dismissing staff without documented grounds.
- Setting a probation term longer than the statutory maximum for the contract term.
- Paying below 80% of the agreed wage, or below the local minimum wage.
- Agreeing to a second probation period for the same employee, which the law prohibits.
- Using a standalone “probation agreement” instead of a proper written employment contract.
- Skipping social insurance registration during probation, which remains mandatory from the first day of employment.
Each of these is avoidable with a properly drafted contract and disciplined onboarding. For companies new to the market, working with a provider that understands China HR and payroll compliance from day one is the cheapest way to avoid a costly labour dispute later. Where headcount is handled through a third party, the rules on labour dispatch in China add a further layer that must be respected.
Frequently Asked Questions
No. The statutory maximums are mandatory. A probation clause that exceeds the permitted length is invalid, and the excess portion is treated as a normal employment term for which the full agreed wage is owed.
No. The minimum-wage floor cannot be waived by agreement. Probation pay must satisfy both the 80% rule and the applicable local minimum wage, whichever is higher.
Yes. Social insurance obligations begin on the first day of employment and are not suspended during probation. Failing to enrol from day one is a common compliance violation.
The termination may be ruled unlawful, exposing the employer to compensation or reinstatement. Employers should document objective hiring criteria and performance shortfalls before terminating during probation.
Disclaimer: This article is provided for general informational purposes only and does not constitute legal or HR advice. Employment rules and local minimum wage levels in China change periodically, and the correct treatment of probation periods depends on your specific contracts and locations. Consult a qualified professional before making employment decisions.
