Job Discussion Forums

[Nimah]

Hi all,

I've just been given a contract (2 Year) and thought I'd run it by those of you who are more knowledgeable about Chinese contract norms. For the most part the contract is ok, but here are a few points that stuck out for me.

(1) Salary will be paid in USD or the equivalent in RMB per month net after tax payable on the last working day of each month. Up to 60% of the salary will be paid in USD, and the remainder in RMB. (Is it possible to request a higher percentage for the USD payment, or is it up to the schools discretion?)

(2) Party A will reimburse the cost of an economy class ticket from the country of origin after an evaluation to Party B made by the school at the end of the 90 day probationary period, subject to presentation of travel documents and receipts. (Is this standard? I believe I read in Lobster's most recent post that for a contract over three months, but under three years the max. probationary period would be 2 months. Regardless, does this seem like an extended period to be reimbursed for your flight?) (Article 19)

(3) Is it common to receive a single entry visa paid for by the school, but have to pay the difference yourself for a multiple entry visa?

(4) Through this contract we receive 4000RMB a month for housing, however we have to find it ourselves and pay the deposit (usually two months rent + first month). All of this before we receive a cent from the school.

(5) Party A may terminate this agreement by giving thirty (30) days notice in writing if Party A determines that the level of enrollments no longer justifies employment of Party B. (This is the first I have seen this!)[/i]

(6) Both parties are entitled to terminate this agreement by serving a minimum of ninety days prior notice in writing during the school academic year to or by the Board. One month's salary in lieu of this ninety days notice period will be paid to or by the Board if less than ninety days notice of termination is given. If Party B terminates this agreement, he/she will be responsible for the full costs of his/her return air passage to home country. (Again, just wondering about the 90 days)


I appreciate any and all help from those in the know!

Thank you.[/b]

[mcl sonya]

I don't know much about this, although I know that my school originally wanted me to go on a 60 day probation period, then the person who hired me said she had talked to her supervisor, who had told her to get us to sign the contracts as soon as possible so everything would be as legit as possible. Because I'm not sure how long I want to stay, I asked if we can just insert a sixty day probation clause for changing our minds without penalty, and so there is one.

The work visa is for one entry, but once you get your residence permit you can leave and return to the country as much as you want until the residence permit expires. I had to pay for my visa.

Honestly, seeing as how the dollar keeps devaluing -- I'm not an expert in this matter, but I'm kind of glad my pay is in RMB. You can also do free money transfers if you have an account with BofA and China Construction Bank.

[Anda]

It should think they have had problems with our lot before. The bottom live is how much are you getting paid. I would not take on a contract written in US dollars as the $ is dropping fast and the Federal Reserve is printing like mad.

Personally I would jump at the offer as I have confidence in my own teaching provided they changed the offer to RMB. For them to be offering 4,000 RMB towards accommodation a month is very good.

[Lobster]

Interesting contract that is. My thoughts are:

Why would they be paying in US$ equivalents? Is it an international school or one run by a US company? If not, it seems like a fleece. I would just ask for a guaranteed rmb/month income. Everyone knows the greenback is declining, so why would you want to earn them in China? Are you an American? Either way, you should look into the tax ramifications of earning US dollars. When I transferred US$ to my Canadian account, I got a notice from the IRS through my bank.

Probation period for a 2-year contract is not to exceed 2 months. The 90-day provision is illegal. That's pretty well an entire term.

Re-imburse your flight expenses after 90 days "after an evauation to Party B by the school"? Go directly to hell, do not pass Go, do not collect 200 rmb! We didn't like your evaluation, thanks for 3 months of cheap labour, now get lost and thanks for paying your way here.

As pointed out, any legal Temp Res Permit will allow multiple entry. They are going to get that for you AT THEIR EXPENSE, right?

Four grand housing looks good, but what we don't know, Anda, is how much the salary is. A 4k tax deduction is nice, but I'll bet they'll want 4 grand in receipts before you get it, and your rent probably won't ever be that high.

The 30-day termination notice appears legal. However, it conflicts with the 90-day notice in the following clause.

The 90-day minimum notice is more bafflegab. During your probation period, you are legally entitled to quit without notice. After your 60 days' probation, the notice period is 30 days.

It never ceases to amze me what employers will try to slip into a contract, and what they will purposefully make vague or leave out to twist things to their advantage.

Look, just insist on a straight-forward, detailed contract that is in accordance with the law and SAFEA regs. If they shy away, take a pass. They're probably out to shaft you. Or, just ask them to insert this clause:

If for any reason, Party A terminates this agreement or attempts to modify it in any way, or if Party A fails to meet any of the standards set out in the Law of the People's Republic of China on Employment Contracts or the State Administration of Foreign Experts Affairs, Party A agrees to pay Party B the entire sum that would be paid during the duration of the entire contract including all benefits, allowances and return airfare, such amount to be paid upon termination of the contract and subject to 10% daily accumulated interest until the entire amount has been paid.

If they include that, go ahead and sign their crappy contract.

RED

[GeminiTiger]

reject it.

1. get payed in rmb, otherwise you will be shafted.
2. maximum probation 30 days, for both party a and party b.
-(so you can also walk away if you like)
3. from what i just read they are talking about reimbursing you a
one way ticket after 90 days. make sure they agree to pay your
return ticket as well!

[bendan]

I agree with most of the above. I'd also wonder why they are offering a two-year contract. At a time of high and rising inflation, what is the benefit of locking yourself into a fixed salary for two years? My employers suddenly offered me a two-year contract last year, at the same rate as before, just as inflation was taking off.

[Nimah]

Thank you everyone for the info. I've written to the school with my contract revisions/concerns and we'll see what transpires in the next few days.

Just a bit more details:

Salary is $2000USD net a month.

This is listed as an 'international' school and teaches a foreign curriculum. So teaching all subjects basically.

Thank you again!

[Nimah]

An update on the contract after submitting my concerns/points to the school:

No change!

Unwilling to change the probationary period and termination notice clause as the 'SAFEA guidelines are from 20 years ago and only apply to public schools and universities."

They were willing to take out the strange termination clause based upon low enrollment, as well pay the salary fully in RMB. I suppose those are some changes. Still not sure what to do though. Quite a few points still don't seem to be kosher.

Advice?

[Mei Sheng]

I guess you're shit out of luck!!

So much for the Brethren.

[Lobster]

The probation period and termination notice requirements are not based on 20-year-old SAFEA regulations for public schools. They are the Law of China and came into effect on January 1st, 2008. They apply to all workers and employers in the PRC. You may provide them with a PDF copy of the law with the relevant points highlighted.

It's not the currency of payment that bothers me, it's the fact that it's based on an amount calculated from $2,000 US. Will they pay you a fixed RMB amount based on the current exchange rate for the duration of the contract? That is, if the RMB is trading now at about 7:1, you'd get 14,000 rmb/mo. If that exchange rate falls to 5:1 a year from now, will you be getting 10,000 rmb/mo. or 14,000? You really need to know this!

If you push this, you probably won't get the position, but that salary is extremely low for what is claimed to be an "international school". Either they are ignorant of the new laws or are just choosing to ignore them.

You could ask them to include this single clause:

"No item or provision of this contract or its appendix shall supercede or breach the Law of the People's Republic of China on Employment Contracts."

If they won't agree to follow the law, what does that tell you? After 60 days, insist that your probation period end and you be given full salary. I still don't have a good feeling about this outfit.

RED

My employer put a clause into my contract saying that I can't have a sig, so it was deleted.

[Nimah]

I agree. I am eager to have something lined up for the new school year so I can stop looking, but there are a few too many red flags.

Apparently the salary is to be based upon the US/RMB exchange rate as dictated at the start of the contract (i.e. August). So essentially whatever the rate is at that time I am presuming will apply for the next two years. A bit strange?

Do I just google SAFEA to find the appropriate link? I think I have reviewed the contents from one of Lobster's previous posts before, but I am not sure if that was the updated January 2008 revised version. If you could point me in the right direction I would appreciate it.

[Lobster]

Nimah wrote:

[lf_aristotle69]