Annual leave is a paid benefit in China, and is required if an employee has worked more than one year cumulatively for all employers (not just the current employer).  For cumulative employment of 1-10 years there is five days of annual leave, and twice that amount for service of 10-20 years.

Case Example

We had a client with an employee in China who was new to the company, but had worked in China for over 10 years.  The employee thought he was entitled to 10 days of leave based on that, and we told our client that he was correct given on his previous employment history in China with other companies.

What if my employee doesn’t take their leave?

Sometimes an employee wont take their annual leave, but there is a strong policy in China against that practice and employers are asked to ensure that leave days are taken.  If the leave is not taken or carried over to the next year, then the employer has to pay 200% of the average daily wage for each unused leave day... read more

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