laws and regulations
Article 14 of the Labor Contract Law stipulates that if the employer fails to conclude a written labor contract with the employee within one year from the date of employment, it is deemed that the employer has concluded an open-ended labor contract with the employee.
Article 10 of the Labor Contract Law stipulates: "To establish labor relations, a written labor contract shall be concluded. If a labor relationship has been established and a written labor contract has not been concluded at the same time, a written labor contract shall be concluded within one month from the date of employment. "
Article 82 of the Labor Contract Law stipulates that "if the employer fails to conclude a written labor contract with the employee for more than one month and less than one year from the date of employment, it shall pay the employee twice the monthly salary".
Consequences of not signing a labor contract
Although the Labor Contract Law does not stipulate that the employer must sign a labor contract with the employee, from the legal consequences of never signing a labor contract, if the employer does not sign a labor contract with the employee, the employer will face the following legal consequences:
(1) Penalty of double salary
If the employer fails to sign a labor contract with the employee for more than 1 month, it shall pay the employee twice the salary. Employers do not sign labor contracts with workers, but they also face credit risks. Even if the employer and the employee reach an oral agreement and do not need to sign a labor contract, if the employer finally fails to meet some needs of the employee, the employee can report to the labor department at any time and demand to pay twice the salary, so the enterprise should sign a labor contract in order to reduce operating costs and risks.
(2) Determine that the contractual relationship with no fixed term is established.
If the employer fails to sign a labor contract with the employee for more than one year from the date of employment, it shall be deemed that the employer has signed an open-ended labor contract with the employee. One concept that needs attention here is the open-ended labor contract. Some people confuse open-ended labor contracts with open-ended labor contracts.