China: Guidance issued to Promote the Application of Electronic Employment Contracts

The Department of Human Resources and Social Security of Jiangsu Province recently released the Guidelines of Jiangsu Province on the Application of Electronic Employment Contracts (“Guidelines“), which aim to guide employers and employees to lawfully conclude electronic employment contracts and standardise the administration of electronic employment contracts. The Guidelines specify that electronic employment contracts concluded in accordance with the law shall have the same legal effect as employment contracts in written form. The Guidelines cover the contents on information service platform for electronic employment contracts, conclusion of electronic employment contracts, and resolution of disputes relating to electronic employment contracts. In addition, the Guidelines provide a relatively complete description of all norms and standards applicable for the period before, during and after the conclusion of electronic employment contracts. The Guidelines are expected to guide employers and employees in Jiangsu Province to conclude electronic employment contracts, ensure the electronic employment contracts to be authentic, complete, accurate and free from being tampered with, and gradually promote the full application of electronic employment contracts in governmental services relating to human resources and social security.

Key Action Points for Human Resources and In-house Counsel 

In early 2020, the Ministry of Human Resources and Social Security openly commented on the electronic employment contract and confirmed its validity. After that, different cities and provinces in China have followed up to formulate local guidance to encourage and promote the use of electronic employment contracts. Employers with a large amount of employees are advised to introduce the electronic employment contracts and improve the efficiency of HR management.