The short answer: yes — it is a legal obligation from day one. Unlike most US states, where many roles can start on a verbal agreement or a simple offer letter, China's Labor Contract Law makes a written contract mandatory, not optional.
Legal basis
- Article 10 of the Labor Contract Law: an employment relationship requires a written contract, to be concluded within one month of the start of work.
- Article 82: if the employer fails to sign a written contract for more than one month but less than one year, it must pay the employee double wages for each month.
- Article 14(3): if no written contract is signed for a full year, the relationship is deemed an open-ended contract.
Key points
- Within one month: the written contract must be signed — this is the latest deadline.
- One month to one year without a contract: the company bears double-wage liability — the price of being late.
- A full year without a contract: the law deems it an open-ended contract, giving the employee stronger protection and making unilateral termination harder.
Practical tips
- Have the employee personally sign and keep the original to avoid "proxy signature" disputes.
- E-contracts must meet the reliable e-signature requirements of the E-Signature Law.
For foreign employers, contract management is a compliance baseline, not paperwork. From signing and terms to archiving, any gap can turn into double-wage exposure. Need a compliant contract and employment setup? Contact CRBPO.
About CRBPO
Founded in 2003, CRBPO (中瑞岳华) is a professional HR service provider with 20+ years in the China market, offering executive search, RPO recruitment, staffing & dispatch, global EOR, tax & accounting, and monthly HR subscription — across 30+ cities — to help foreign companies run compliant, efficient operations in China.
Follow us: WeChat Official Account "中瑞岳华科技服务" | LinkedIn; Hotline: 400-658-9852; Email: service@crbpo.com.