Remote Working Legislation, Laws & Regulations in China

Currently there is no specific legislation relating to working from home in China. However, general labour law requirements and regulations (e.g. on working hours, labour conditions and equipment) should also apply when working from home. 

Working from home can be implemented through collective bargaining agreements, written contracts or mutual agreement.  

Generally, an employer has no right to require employees to work from home unless the employees agree. Employee consent is necessary.

No. An employer is not obliged to agree to an employee's request to work from home. Employer consent is also necessary.

Yes. The employer is generally obliged to provide employees with the required working equipment and supplies regardless of the place of work. Therefore, if an employee asks for office equipment and supplies for remote working, the employer is obliged to provide them.

Yes. The employer is obliged to reimburse an employee for expenses while working from home, if such expenses were necessary to work from home and the employee can prove that they were incurred for that reason. 

No. There is no statutory provision that obliges the employer to grant the employee a specific work-from-home allowance. 

Yes. Under the PRC labour law, an employer must provide employees with a safe and healthy working environment and conditions in accordance with law. This includes employees who work remotely. In practice, it is difficult for an employer to implement this obligation for employees working remotely. To reduce risks, the employer should agree with any employee who wishes to work from home that they will undertake and ensure that their residence environment is safe, healthy and suitable for the purpose.

No.

There is no statutory requirement.   

According to the PRC Work Related Injury Insurance Regulation, if an employee suffers a work-related injury or occupational illness, the employee is entitled to receive the statutory work-related injury insurance benefits.

Whether an injury or illness suffered while working from home is a work-related injury or an occupational illness is subject to the decision of the competent labour authority in accordance with the law. 

No.

The employee has no specific statutory obligations related to working from home. However, the employer may set up specific obligations for an employee related to working from home through an individual agreement or company rules, such as requiring the employee to take proper measures to ensure the safety and security of any company data processed while working remotely, etc.

No.

“Remote work abroad” as such is not specifically defined in the laws of the People’s Republic of China (PRC). In general, it refers to the scenario where an employee performs work for the employer outside the employer’s premises from another country while remaining connected through technical means.

Currently, there is no national regulation specifically relating to remote work abroad in China.

Under PRC law, the applicable labour law for an employment relationship is mandatory and cannot be chosen by the employers and employees. Generally, where it involves foreign-related factors, an employment contract is governed by the law of the place of work of the employee. If it is difficult to determine the place of work, the law of the principal place of business of the employer applies. The Supreme Court of the PRC further requires that PRC law will apply to the protection of the rights and interests of the employees.

Based on the above, the applicable labour law may vary depending on different scenarios of remote work abroad:

• If a foreign employee works abroad remotely for the Chinese employer at a regular workplace abroad, the law of the regular place of work abroad will apply.
• If a Chinese employee works abroad remotely for a Chinese employer at a regular workplace abroad, PRC law will apply in situations relating to the protection of the rights and interests of the employee.
• If an employee (either a Chinese national or foreigner) works abroad remotely for the Chinese employer but does not have a regular workplace abroad, the place of work is difficult to determine. Hence, in such a situation, PRC law will apply.
• If an employee (either a Chinese national or foreigner) working remotely in China for a foreign employer abroad and the employer is a foreign company without a business registration in China and does not conduct business operations in China, the foreign company is not qualified to be an employer engaging the employee in China. In such a scenario, the work relationship between the foreign employer and the employee will not be regarded as an employment relationship and the application of the law will be subject to the agreement of the parties. If no agreement is reached, the law of the habitual residence of the party whose performance of contractual obligations can most reflect the characteristics of the contract or the law most closely associated with the contract shall apply.   

Under PRC law, all Chinese employees employed by Chinese employers are required to participate in China’s social security system at the place where the Chinese employer is registered, regardless of where the employees perform work, either at home or abroad.

Foreign employees working for Chinese employers in China are also required to participate in China’s social security system. Foreign employees who are the nationals of Canada, Finland, Germany, South Korea, Japan, Denmark, Spain, the Netherlands, Luxembourg, the Republic of Serbia, and Switzerland, which have concluded bilateral or multilateral agreements with the PRC, are exempt from parts of China’s social security system under certain conditions.

However, if a foreign employee permanently works abroad for a Chinese employer rather than in China, he/she will not be required to participate in China’s social security system.  

If employees (either Chinese nationals or foreigners) work remotely in China for foreign employers abroad, these work relationships under PRC law will not be regarded as employment relationships and the foreign employers cannot make social security contributions for their employees in China.  

A foreign employee working remotely in China for a short term solely for a foreign employer does not need to pay PRC Individual Income Tax (IIT) unless his/her activities constitute a permanent establishment in China.

A foreign employee working remotely outside China for a short term solely for a Chinese employer must pay PRC IIT for the entire salary income, but any personal income tax levied by the foreign jurisdiction due to the short-term remote working can be subject to foreign tax credits in China if the foreign employee is a PRC tax resident individual.

A foreign employee taking dual positions in both a foreign entity and a Chinese entity, regardless of working remotely for a short term in China or abroad, must pay IIT for the PRC-sourced incomes corresponding to the time spent in China.

A Chinese employee working remotely abroad for a short term for a Chinese employer will always pay IIT for full incomes without apportionment, but any personal income tax levied on the salary incomes by the foreign jurisdiction can be subject to foreign tax credit in China.

Under PRC law, foreigners working in China for Chinese employers are required to obtain work permits and residence permits to legally work and reside in China. However, if the foreign employee permanently works abroad rather than in China for the Chinese employer, PRC laws do not require this foreign employee to obtain a work permit or a residence permit.

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