Contract renewal

China fixed-term contract renewal: the employer’s review

A China employment contract reaching its printed end date does not answer every question about renewal or exit. Before headquarters approves a non-renewal, examine the contract history, the employee’s position and any statutory continuation or open-ended-contract requirement.

1. Reconstruct the complete employment history

Collect every contract, renewal, extension and change of employing entity, together with the actual first working day and periods of continuous service. Include side letters and automatic-renewal clauses. A spreadsheet listing only the most recent contract can miss the event that changes the legal analysis.

Record whether the employee proposes or agrees to renewal and the terms offered by the employer. Article 14 contains conditions for open-ended contracts, including continuous service and successive fixed-term contracts, with qualifications stated in the law. Do not reduce the inquiry to a universal slogan that every second expiry may be ended freely or must always produce the same result.

2. Account for the 2025 rules on successive contracts

Article 10 of SPC Interpretation (II), effective from 1 September 2025, identifies situations treated as two consecutive fixed-term contracts for Article 14(2)(3). One is expiry after agreed extensions cumulatively reach at least one year. Another concerns expiry of an agreed automatic renewal. A document labeled an extension therefore requires substantive review.

The provision also addresses changes of employing entity where, for reasons not attributable to the employee, the person remains in the original workplace and role and continues under the employer’s management, and other bad-faith avoidance arrangements. A group reorganization should not be assumed to reset the renewal count merely because a different group company signs.

3. Check statutory continuation before considering expiry

Article 45 of the Labor Contract Law addresses extension where an Article 42 circumstance exists at expiry, subject to the provision’s rules. Article 8 of the 2025 interpretation also identifies statutory continuation connected with protected circumstances, an unexpired agreed service period under the implementing regulations, and specified trade-union terms of office.

Identify potentially relevant medical-treatment, pregnancy, maternity, nursing, occupational-health and other circumstances before preparing the notice. Different circumstances have different rules and evidence requirements. Request the information needed for the decision through an appropriate, limited process.

4. Do not leave post-expiry work unmanaged

Article 11 of SPC Interpretation (II) addresses continued work after expiry where the employer raises no objection for more than one month. It supports the employee’s request for renewal on the original terms and, where the conditions are met, an open-ended contract on those terms. It also addresses the consequences when the employer terminates.

Use a renewal calendar with responsibility assigned well before expiry. The calendar should trigger a legal and factual review, not an automatic stop instruction. If work has already continued, assess the real sequence instead of backdating a renewal or describing the employee as a visitor.

5. Review compensation and implementation separately

Article 46(5) addresses economic compensation on fixed-term expiry, including its exception where the employer maintains or improves the agreed terms and the employee refuses renewal. Assess the evidence of the actual offer and response. The compensation question does not eliminate a separate duty to renew or extend where such a duty applies.

For legal review, provide the full contract chain, service timeline, current job and pay, proposed renewal terms, employee communications and known protected circumstances. A reasoned decision before expiry is usually easier to implement than correcting conflicting payroll, access and management instructions afterwards.

Legal sources

Official sources · Checked 2026-09-20. English explanations are summaries, not official translations.

General information about mainland China. The facts, applicable dates and local rules require individual review.

Jianxing Pan
Jianxing Pan

Partner, Beijing ChangAn Law Firm
China-qualified since 2019 · Beijing & Shenzhen

Review an approaching China contract expiry

State the expiry date, number of contracts, continuous service and proposed renewal or exit arrangement.

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