Probation Period Rules in China: Length, Pay and Termination

TL;DR

• China links the maximum probation period to the employment-contract term: up to one month, two months or six months. Contracts shorter than three months and contracts for completion of a defined task cannot include probation.
• The same employer may agree only one probation period with the same employee. Probation must sit inside the employment-contract term, and pay cannot fall below the applicable statutory floor.
• Probation does not create at-will employment. An employer terminating for failure to meet recruitment conditions needs lawful, role-specific standards, evidence and a stated reason.

If you are preparing a first China hire or reviewing a probation termination, talk to ChinaBizPro before taking action so the contract, assessment record and payroll treatment can be checked together.

The statutory limits at a glance

The Labor Contract Law sets the following maximum periods. An employer may use a shorter period or no probation at all, but cannot extend the statutory maximum by agreement.

Employment-contract term	Maximum probation period
Less than 3 months	Probation is not permitted.
3 months to less than 1 year	1 month.
1 year to less than 3 years	2 months.
3 years or more, including an open-ended contract	6 months.
Contract ending on completion of a defined task	Probation is not permitted.

Probation is part of the employment contract, not a separate preliminary relationship. If a document states only a probation period and no employment term, the stated period is treated as the employment-contract term and the probation clause is invalid.

The wider employment-contract guide explains fixed-term, open-ended and task-completion contracts and the clauses that should be aligned with probation.

One employee, one probation period

An employer may agree probation only once with the same employee. A new probation period should not be added simply because the employee is promoted, transferred, rehired or signs a renewal. A corporate restructuring or transfer between related entities also deserves careful review; changing the name on the contract does not automatically remove continuity or abuse concerns.

The period should be agreed in the written employment contract before it is applied. A handbook statement or verbal explanation is not a reliable substitute. Extending probation after weak performance is particularly risky: once the agreed lawful period ends, the employer cannot recreate the lost assessment window by amendment.

How probation salary is calculated

During probation, salary must not be lower than:

• the lowest salary for the same position at the employer, or 80% of the salary agreed in the employment contract; and
• the local minimum-wage standard for the place of work.

Both parts of the rule matter. Calling a payment a training allowance or probation stipend does not avoid the salary floor. The contract, offer, payroll register, individual income-tax filing and bank payment should show the same lawful arrangement.

Employers should also include probation employees in the normal payroll and contribution process. Probation is employment, so it does not postpone social-insurance or housing-fund obligations. See the monthly payroll checklist for the records that should reconcile.

Can an employee be dismissed during probation?

Yes, but not simply because management says the employee is "not a fit." The employer must rely on a statutory termination ground. A commonly used ground is that the employee is proven not to meet the recruitment conditions during probation. The employer bears the practical burden of showing what those conditions were and how the evidence supports the conclusion.

A defensible file normally connects four elements:

1. Recruitment conditions that were lawful, objective and relevant to the role.
2. Evidence that the conditions were communicated before or when employment began.
3. Assessment evidence collected during the agreed probation period.
4. A written termination decision stating the applicable reason and delivered through a provable process.

Other statutory grounds may apply, such as serious misconduct or circumstances covered by the Labor Contract Law, but each has its own conditions. The employer should also check whether special restrictions, a collective contract, local rules or union-notification requirements affect the process.

Build recruitment conditions that can be used

Job descriptions and probation scorecards should identify what success means without pretending that every outcome is under the employee's control. Useful criteria can include:

• possession of a qualification that was expressly required for the role;
• completion and accuracy of defined work outputs;
• compliance with documented safety, data or financial controls;
• role-specific capability demonstrated through observed tasks;
• attendance and conduct requirements contained in lawful company rules; and
• an agreed learning or onboarding milestone that the employer actually enabled.

Avoid vague standards such as "positive attitude," "cultural fit" or "management satisfaction" as the sole basis. Sales targets, project deadlines and language requirements should be realistic, measurable and disclosed. An employer should not invent new criteria after concerns arise.

Seven-step probation process

1. Confirm the contract term

Choose the appropriate contract type and calculate the lawful maximum. Do not automatically use six months for every senior role.

2. Document recruitment conditions

Prepare a job description and short scorecard before the employee starts. Separate essential entry qualifications from objectives that require a longer performance cycle.

3. Sign before work begins

Put the agreed probation, salary, position and work location in the written contract. Retain evidence that the employee received the relevant job description and policies.

4. Complete employment onboarding

Add the employee to payroll, tax, social-insurance and housing-fund processes from the applicable start date. Probation is not an exemption period.

5. Give feedback while correction is possible

Record onboarding, work samples, coaching, warnings and employee responses. A surprise decision on the last day is harder to support than a contemporaneous record.

6. Decide before probation expires

Allow time for HR and legal review. If termination is contemplated, confirm the statutory ground, evidence, approval, timing, notice or payment requirements and local process before delivery.

7. Close the record consistently

Update payroll, access, company property, work handover and separation documents. The reason shown across internal approvals and employee communications should be consistent.

Common mistakes

1. Using six months of probation in a one-year contract.
2. Starting a second probation after renewal, promotion or internal transfer.
3. Signing a stand-alone "probation contract" before the main employment contract.
4. Paying 80% of contract salary without checking the same-position floor and local minimum wage.
5. Delaying social-insurance registration until probation is passed.
6. Relying on a generic job description or undisclosed manager expectations.
7. Extending probation because the employer did not assess the employee in time.
8. Backdating assessments or asking the employee to resign instead of documenting the real process.
9. Treating probation as at-will and giving no statutory reason for termination.

Frequently asked questions

Can probation be extended if both parties agree?

An extension is risky and cannot exceed the statutory maximum or create a second probation period. Even within the maximum, changing the agreed period after employment begins may be challenged. Review the original contract and local practice before making any amendment.

Can a six-month probation be used for a two-year contract?

No. A contract of at least one year but less than three years permits a maximum of two months.

Is severance always unnecessary during probation?

No. The answer depends on the statutory termination ground and procedure. A valid termination for proven failure to meet recruitment conditions is different from termination based on illness, incompetence, restructuring or mutual separation.

Can the employer terminate on the final day of probation?

The decision and applicable process must be completed while the probation provision is still effective. Waiting until the last day leaves little time to review evidence, approvals and delivery. Start the review earlier.

Do these rules apply to foreign employees?

Foreign employees working lawfully for a China entity are generally managed under the applicable China employment framework together with work-permit and residence requirements. Contract enforceability and termination consequences can involve local rules and the person's authorization status, so obtain case-specific advice.

Official references

• Labor Contract Law of the People's Republic of China
• National Database of Laws and Regulations
• Qianhai Cooperation Zone People's Court: Employment Risk Guide for Foreign-Invested Enterprises