Despite the fact that 2017 is a fortune year for foreign investors as China is going to implement one policy to another, foreign companies operating in China are increasingly finding themselves in an uncomfortable position of undergoing an internal investigation or encountering a potential labor disputes. According to national statistics released by China’s Supreme People’s Court (SPC), 2015 witness a sharp rise in labor disputes. New labor disputes, meaning disputes that arise during a contractual relationship between employee and employer, accepted by the Chinese courts totaled 483,311 – an increase of 25 percent from 2014. Labor service disputes, meaning disputes arising from “independent contractor” agreements with quasi-employment relationships, totaled 162,920 – an increase of 38.7 percent from 2014.

Labor disputes can be costly, both in terms of money and reputation. Oftentimes, and especially for foreign firms, the issue stems from a lack of HR oversight. An HR audit can reveal such inconsistencies and determine whether or not the company faces any employment-related liabilities.

 In additionally, there are tremendous amounts of risks related to HR in China, the graph below vividly shows where the risks stem from and what aspects should be considered. 

HR solutions can be more complicated than you expected in China therefore most of the startup companies decide to outsource their HR solutions to the recruitment agencies like us. Talent Spot is dedicated to drive our client's core business forward by keeping providing premiere, high-quality, customized full- scale of HR solutions, talent solutions and services. 

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