Asked by: Production Enterprise HR
In Shanghai, after two consecutive fixed-term labour contracts have been signed or for employees who have worked continuously for ten years, does the company have the right to refuse to sign non-fixed-term labour contracts?
Answered by : River Delta·Shanghai Attorney Siying Chen
According to the provisions of the Shanghai High People's Court and judicial practices, the rules for non-fixed-term contracts in Shanghai are as follows:
1) After 2008, when the company has signed two fixed-term labour contracts with the employee, the company must sign a non-fixed-term labour contract when both of the following conditions are met.
A. The company agrees to renew the labor contract for the third time.
B. The employee initiatively proposes to sign a non-fixed-term labour contract.
This means that the company has the right to choose not to renew the third labor contract with its employees before the employee's two fixed-term contracts expire.
2) For employees who have worked continuously for 10 years, when the last contract expires, if the employee proposes renewal and requires the company to enter into a non-fixed-term labour contract, the company must conclude one with the employee, instead of terminating the labor contract on the expiry of the contract.
3) Employees who meet the conditions for signing a non-fixed-term labour contract, but who voluntarily choose to sign a fixed-term labour contract with the company, such a fixed-term contract is valid and can be terminated by law when the contract expires.