How to Hire Employees in China from Australia

By Out2China Team | Reviewed by Janey Fan

To hire employees in China from Australia, you usually need to settle two things separately: finding the right person, and deciding which company in China will be the legal employer. A business without a China company can first engage a recruitment service provider to find candidates, then employ the chosen person through an Employer of Record (EOR) or its own China entity. Recruitment commonly takes 4 to 6 weeks from the start of the search, and EOR onboarding can take as little as 14 days and generally takes about 30 days, depending on the role, salary, candidate and how quickly decisions are made.

Can an Australian company directly employ someone in China?

If the employee works in China, a labour contract directly with the Australian company is usually not workable. The employers covered by China's Labor Contract Law are enterprises and other organisations within China^[1], and individual income tax on wages, social insurance and the housing fund also have to be filed and paid by an entity within China. You therefore need to settle the employment model before discussing the terms of an offer.

Model	Who is the employer	Suits	Watch for
EOR (Employer of Record)	The provider's China company	No China entity, hiring one person or a small team first	Confirm the contracting entity and the termination arrangements
Set up a China entity (WFOE)	Your own China company	Long-term operations with more staff	Setup and ongoing compliance both take time and resources
Independent contractor	No employment contract	Genuinely independent, project-based work	If the person is in fact managed like an employee, a labour relationship may be found to exist
Labour dispatch	The dispatch company	Only businesses that already have a China entity	Not available without a China entity

For most Australian businesses hiring in China for the first time, we suggest starting with headcount and duration. If you are hiring one to a few people and still testing the business, an EOR is usually easier to adjust than setting up a company straight away. If you have already decided to operate long term, setting up an entity may be the better fit.

What does the hiring process look like?

Recruitment and employment are two separate stages. The process below assumes an overseas business has engaged a recruitment service provider.

Stage	What the provider does	What you decide
Role definition	Sets out duties, city, work arrangements, salary range and language requirements	Which requirements are essential and which can be relaxed
Sourcing and screening	Chooses recruitment platforms, contacts candidates and does initial screening	Whether the salary range fits the market
Shortlist and interviews	Submits resumes and matching notes, arranges interviews and collects feedback	Which candidates move forward
Background checks and offer	Coordinates background checks as needed and discusses salary and terms	Whether to hire, and on what terms
Onboarding	Moves to the EOR process or your own employment process for the labour contract, social insurance and housing fund; the recruitment provider can advise	Start date and probation arrangements

Overseas businesses without a China entity often find it hard to pass employer verification on Chinese recruitment platforms themselves. Under the Provisions on the Administration of Online Recruitment Services, platforms must verify the employer's business licence or establishment documents, the identity of the person handling the matter and the employer's authorisation^[2]. A business without a China company therefore generally has to engage a qualified local provider to post roles.

It is best to state language requirements clearly from the start. Whether the role needs English for meetings or only for reading and writing emails directly changes the candidate pool and the salary level. In our projects we also often ask clients to confirm this first, before sourcing begins.

From recent projects, three things are worth settling early. If direct applications do not come at the original budget, ask the provider to report what comparable candidates expect and decide whether to change the range. If you are not ready to commit to a full hiring plan, agree a small first batch and what must happen before the next one; one e-commerce client started this way and has since added further roles. If your role takes months to judge, discuss the replacement period before you sign.

"What impressed me most about this company was their rare combination of efficiency and quality."

Purchasing Manager, e-commerce company · Verified review on Clutch

Which roles can an Australian team manage remotely?

Roles with work that can be clearly handed over and results that can be checked are easier to manage remotely. Examples include purchasing and order follow-up, quality inspection coordination, finance and administrative support, customer service, business analysis and software development. This arrangement does not suit roles that need the employee on site in Australia long term, or work restricted by Australian professional licensing.

For a first hire, we suggest starting with one role and writing down three things before making an offer: what the employee delivers each week, who checks it, and who they report to when problems come up. This can reduce disagreements during probation and makes it easier to decide whether to expand the team.

What does it cost to employ someone in China?

Australian businesses often treat the employee's gross salary as the full cost, but employer social insurance and housing fund contributions also have to be counted. These additional employer costs are often estimated as a share of salary. The 27%–33% range is an early budgeting estimate, not a nationwide fixed rate or a quote. Calculate each contribution using its applicable base and local employer rate; the effective percentage of salary may fall outside this range. You can estimate by city with our employment cost calculator.

When reviewing a quote, we suggest looking at two types of charge separately. One is the provider's own fees, such as the recruitment fee and EOR service fee. The other is costs collected on your behalf, such as salary and employer social insurance and housing fund contributions. If a quote gives only one combined figure, it is hard to tell how much the provider is actually charging.

How do time zones work for Melbourne, Sydney and Brisbane?

The time difference between eastern Australia and China is small, so interviews and day-to-day communication are fairly easy to arrange.

City	Difference from Beijing time (UTC+8)	10:00 Beijing time is locally
Melbourne, Sydney	2 to 3 hours ahead of China (varies with daylight saving)	About 12:00 in July, about 13:00 in January
Brisbane	2 hours ahead of China	12:00

Interviews and daily contact are therefore easiest to schedule from midday to afternoon in Australia, which usually falls within China's working hours. The point to watch is that the two countries have different public holidays, especially Chinese New Year and the National Day holiday. Payroll and project schedules are best planned ahead around Chinese holidays.

What employment rules apply on the China side?

These are the Chinese legal requirements we are asked about most often. Local rules and professional advice should prevail in any specific case.

Item	Rule
Written labour contract	A written contract should be signed when a labour relationship is established. If work has started without one, it should be signed within one month of the start date[1]
Probation	Contract of 3 months to under 1 year: up to 1 month. 1 year to under 3 years: up to 2 months. 3 years or more, or open-ended: up to 6 months[1]
Social insurance registration	The employer should apply for social insurance registration within 30 days of the start date[3]
Sending employee data overseas	Before transferring personal information overseas, confirm the lawful basis and applicable transfer route, and meet the relevant notice, consent and impact-assessment obligations. Assess whether a security assessment, standard contract or certification is required, or an exemption applies[4]

What should you check on the Australian side?

An employee working in China does not necessarily mean Australian rules have no bearing. These are the three items Australian employers most often need to confirm. When hiring through an EOR, the China company is the contracted employer, but the Australian client's own position still needs to be assessed separately. The EOR label alone does not rule out responsibility.

Item	What Australian official sources say	What to confirm
Whether Fair Work applies	An employee working in China does not mean Fair Work can never apply. An employee engaged in Australia by an Australian employer who then works overseas may still be protected by the relevant rules[5]	The actual employer, the main work location and where the employment contract was made
Independent contractors	Calling someone an independent contractor in a contract does not make them one in law. The contract and the working arrangements are assessed together under the applicable rules. Misrepresenting an employee as a contractor, without being able to show a reasonable belief at the time, may be illegal sham contracting and may lead to back-payment of employee entitlements and civil penalties[6]	Whether the contract and actual working arrangements look more like employment
Super	Working in China alone does not decide this. Pay to a non-resident of Australia for tax purposes for work done outside Australia is generally excluded from the Super Guarantee calculation. An employee temporarily sent to China by an Australian employer who continues to meet the applicable conditions generally still requires contributions. Where contributions are required on qualifying earnings, the current rate is 12%[7]	The actual employer, the tax residency of both parties and where the work behind the pay is done

None of these official sources was written specifically about employees in China, and the Fair Work Ombudsman also suggests that businesses employing overseas staff seek independent advice. It is best to have an Australian accountant or lawyer confirm your actual arrangements before signing.

What should you ask a provider before choosing one?

The answers to these questions should be written into the contract or proposal. A verbal explanation alone is not enough.

1. Which entity is the employer on the employee's labour contract? The provider's own company or a partner?
2. In whose name will roles be posted during recruitment? Does that company hold the relevant human resources service licence?
3. Are service fees and costs collected on our behalf listed separately?
4. How often will we receive progress updates during recruitment? Can we see each role's status, main obstacles and next steps?
5. If a candidate leaves after starting, what are the replacement rules and conditions?
6. If we end the EOR service, how much notice is required and what fees apply?
7. Who calculates salary, social insurance and the housing fund, and how do we check the invoices?

How can Out2China help?

The Out2China team has worked in human resources in China since 1997. Under our standard arrangement, our licensed China company acts as the contracted employer and coordinates the required local employment procedures. Some projects use local partners, and the actual employer is confirmed before onboarding. Recruitment and EOR can be engaged separately or one after the other. During recruitment, each role has a progress record, we send a weekly summary, and matters that need your decision are sent to you with our recommendation.

If a candidate recruited by Out2China leaves within 90 days of starting, we can search for the same role again once at no charge where the conditions are met. See the recruitment services page for the conditions. If you have already chosen a candidate, you can go straight to EOR services. If you want to buy work or process outsourcing rather than employ staff, see outsourcing services.

Frequently asked questions

What is the next step?

If you are considering hiring in China, send us the role, city and salary range, or call our Australian number, 1300 741 668. Contact Out2China and we will first confirm the recruitment and employment model that fits, then give you a proposal. More information is at out2china.com.

This article is general information only and is not legal, tax or immigration advice. Please consult a qualified professional about your specific arrangements.

Sources

1. Labor Contract Law of the People's Republic of China (《中华人民共和国劳动合同法》), Articles 2, 10 and 19, text republished by the Beijing Municipal Bureau of Justice: https://sfj.beijing.gov.cn/sfj/sfdt/fzxc74/387021/index.html
2. Provisions on the Administration of Online Recruitment Services (《网络招聘服务管理规定》), Article 17, Ministry of Human Resources and Social Security of China: https://www.mohrss.gov.cn/xxgk2020/gzk/gz/202112/P020211229518511385731.pdf
3. Social Insurance Law of the People's Republic of China (《中华人民共和国社会保险法》), Article 58, State Taxation Administration law database: https://fgk.chinatax.gov.cn/zcfgk/c100009/c5192937/content.html
4. Personal Information Protection Law of the People's Republic of China (《中华人民共和国个人信息保护法》), Articles 38 and 39, Cyberspace Administration of China: https://www.cac.gov.cn/2021-08/20/c_1631050028355286.htm ; Data Export Security Management Policy Q&A (July 2026), Questions 1 and 3: https://www.cac.gov.cn/2026-07/24/c_1786638883119336.htm ; Q&A on the Provisions on Promoting and Regulating Cross-Border Data Flows (March 2024), Questions 2 and 7: https://www.cac.gov.cn/2024-03/22/c_1712776611649184.htm
5. Fair Work Ombudsman, Employees working overseas and Australian-based employees of non-Australian employers: https://library.fairwork.gov.au/viewer/?krn=K600417
6. Fair Work Ombudsman, Sham contracting: https://www.fairwork.gov.au/find-help-for/independent-contractors/sham-contracting ; Whole of relationship test: https://www.fairwork.gov.au/find-help-for/independent-contractors/whole-of-relationship-test
7. Australian Taxation Office, Work out if you have to pay super: https://www.ato.gov.au/businesses-and-organisations/super-for-employers/work-out-if-you-have-to-pay-super ; Superannuation Guarantee (Administration) Regulations 2018, regulation 12.

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