Q&A on Over Age Employees in China
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What is an over age employee in China?
Answer: In China, an over age employee refers to the employee who has reached the statutory retirement age.
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Hiring over age employees is subject to the Labour Contract Law of the PRC or not?
Answer: Hiring over age employees who has reached the statutory retirement age is not subject to the Labour Contract Law of the PRC. It is subject to the Interim Provisions on the Protection of Basic Rights and Interests of Over Age Employees.
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Does a written contract must be signed when hiring an over age employee?
Answer: Although hiring over age employees is not subject to the Labour Contract Law of the PRC, the employee still must sign a written contract with the over age employee, stipulating contract term, job contents, working hours, rest and vacation, labour remuneration, social insurance, labour protection, working conditions, occupational hazard protection and other matters.
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Does the employer must buy work-related injury insurance for the over age employee?
Answer: Yes, the employer must buy work-related injury insurance for the over age employee.
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Can the dispute on labour remuneration between the employer and employee be filed to the court directly for a lawsuit?
Answer: No. According to the Interim Provisions on the Protection of Basic Rights and Interests of Over Age Employees, dispute on labour remuneration, rest and vacation, labour safety and health, or work-related injury protection between the employer and employee must be taken to labour dispute arbitration first. Filing a lawsuit with the court directly is not allowed.
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How to calculate overtime pay for over age employees?
Answer: When an employee is arranged by the employer to work overtime, overtime pay shall be calculated and paid in accordance with Article 44 of the Labour Law of the PRC, which stipulates that overtime pay on working days shall not be less than 150% of the salary, overtime pay on rest days without compensatory leave shall not be less than 200% of the salary, and overtime pay on statutory holidays shall not be less than 300% of the salary.
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