Statutory Working Hour System in China
There are three types statutory working hour system in China, namely the standard working hour system, the comprehensive working hour system and the flexible working hour system. The employer may decide and choose a suitable working hour system in accordance with the needs of production and operation.
1. Standard Working Hour System
Under the standard working hour system, the working hours of the employees shall be no more than 8 hours a day and no more than 40 hours a week.
The standard working hour system is currently adopted by most employers in China. Prior approval from the local labour administration authority is not required for the implementation of the standard working hour system. The employer may decide the specific schedule at its discretion. For example, work from Monday to Friday and rest on Saturday and Sunday. But the schedule cannot be adjusted freely once decided. If the employer arranges the employee to work outside the standard working hours, it will be deemed as overtime work. The employer shall pay overtime wages or arrange compensatory leave for the employee.
2. Comprehensive Working Hour System
Under the comprehensive working hour system, the working hours are accumulated over a certain period, e.g. weekly, monthly quarterly or yearly. But the average working hours within the period shall be roughly consistent with that of the standard working hour system.
Prior approval from the local labour administration authority is required for the implementation of the comprehensive working hour system. The accumulation period shall be determined by the local labour administration authority as well. Under the comprehensive working hour system, if the employer arranges the employee to work on Saturday or Sunday, it will not be deemed as overtime work. Therefore, overtime wages are not required unless the weekend is a statutory holiday.
3. Flexible Working Hour System
Under the flexible working hour system, the employer restrains the employees primarily by work performance rather than working hours. The working hours are arranged by the employees themselves.
Prior approval from the local labour administration authority is also required for the implementation of the flexible working hour system. Overtime wages are almost not required under the flexible working hour system.
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