Labor Contract Law 3

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Article 12 Labor contracts are divided into fixed-term labor contracts, open-ended labor contracts and labor contracts that terminate upon the completion of a certain task.

Article 13 A fixed-term labor contract refers to a labor contract where the termination date has been agreed upon by the Employer and the employee.

A fixed-term labor contract may be concluded between an Employer and an employee upon consultation.

Article 14 An open-ended labor contract refers to a labor contract where the Employer and the employee have agreed not to stipulate a definite termination date.

An open-ended labor contract may be concluded between an Employer and an employee upon consultation. If an employee proposes or agrees to renew and conclude a labor contract in any of the following circumstances, an open-ended labor contract shall be concluded, unless the employee requests the conclusion of a fixed-term labor contract instead:

(1) The employee has been working for the Employer for ten (10) consecutive years;

(2) When the Employer first introduces the labor contract system or the state-owned enterprise that employs him re-concludes its labor contracts as of restructuring, the employee has been working for the Employer for ten (10) consecutive years and is less than 10 years away from his legal retirement age; or

(3) Where a labor contract was concluded as a fixed-term labor contract on two consecutive occasions and the employee, in the absence of any of the circumstances stipulated in Article 39 and items (1) and (2) of Article 40 of this law, renews such contract.

If an Employer fails to conclude a written labor contract with an employee within one (1) year from the date the employee commences work, they shall be deemed to have entered into an open-ended labor contract.

Article 15 A labor contract that terminates upon the completion of a certain task refers to a labor contract where the Employer and the employee have agreed that the contractual term is based on the completion of a specific task.

An Employer and an employee may, upon consultation, conclude a labor contract with a term that is based on the completion of a certain task.

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