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Employment ContractSpecify Terms as Could

According to the law, employees can work eight hours a day and 40 hours a week. Overtime refers to hours worked outside of those 40 hours or hours worked on Statutory Holidays.Employers may not force employees to work overtime. If for some reason employees work overtime, the employer shall compensate the worker as follows:On workdays, the payment is 1.5 times regular salary;On weekends, the payment is 2 times regular salary;On statutory holidays, the payment is 3 times regular salary.The following is an explanation of the above mentioned rule:

**1. Statutory holiday**Statutory holidays including: New Years Day (one day), Chinese New Years Day (three days), Tomb-Sweeping Day(one day), Labor Day (one day), Dragon Boat Festival(one day), Mid-Autumn Festival (one day), and National Day (three days). There are 11 days in total.

**2. Overtime during Statutory holidays**For overtime during weekends or workdays, the employer could allow employees to take leave which is equal to the time they worked overtime (Comp Time); however, for overtime during statutory holidays, the employer has to pay the employee three times their regular payment.

**3. How to calculate overtime payment.**Firstly, we have to figure out how to calculate payment for each day, which is monthly payment divided by 21.75. Suppose Alexs salary is 5000RMB, so his salary for each day is 5000/21.75=229.88RMB,If he worked overtime on Monday for two hours, then his overtime payment is 2*1.5*5000/21.75/8=86.20RMB;If he worked overtime on Saturday for two hours, then his overtime payment is 2*2*5000/21.75/8=114.94RMB,If he worked overtime for a full day on Labor Day, then his overtime payment is 3*5000/21.75=689.65RMB.Is it clear now?

Related provisions in

*Labor law of PRC*

**Article 38**: The employing unit shall guarantee that its staff and workers have at least one day off a week.

**Article 44**: The employing unit shall, according to the following standards, pay laborers remunerations higher than those for normal working hours under any of the following circumstances:(1) to pay no less than 150 per cent of the normal wages if the extension of working hours is arranged;(2) to pay no less than 200 per cent of the normal wages if the extended hours are arranged on days of rest and no deferred rest can be taken; and(3) to pay no less than 300 per cent of the normal wages if the extended hours are arranged on statutory holidays. Click "read more" to visit our website \n

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