3 In relation to the Labour Contract Law of China:
(a) explain the term open-ended employment contract (i.e. a labour contract without a fixed-period of
employment); and (2 marks)
(b) state the various circumstances under which an open-ended employment contract must be concluded by the
employer and employee. (8 marks)
(10 marks)

3 This question requires candidates to explain the term open-ended employment contract, and state the various circumstances under
which an open-ended employment contract must be concluded under the Labour Contract Law of China.
(a) In accordance with Article 14 of the Labour Contract Law, an open-ended employment contract refers to such kind of
employment contract in which the employer and the employee have agreed not to set up a definite expiration date.
(b) Under the following circumstances, an open-ended employment contract must be concluded by the employer and employee:
(i) The employee has been working for the employer for a consecutive period of not less than 10 years;
(ii) When an employer introduces the employment contract system for the first time or a state-owned enterprise re-concludes
its employment contract with its employees as a result of enterprise restructuring, the employee has been working for
the employer for a consecutive period of not less 10 years and there are less than 10 years from his/her statutory
retirement age;
(iii) Prior to the renewal, two consecutive fixed-term employment contracts were concluded and the employee does not fall
in any of the situations provided in Articles 39, 41(1) and 41(2).
(iv) If an employer fails to conclude a written employment contract with an employee within one year from the date on which
he started hiring the employee, the employer and employee shall be deemed to have concluded an open-ended
employment contract.