According to the Employment Contract Law of the People’s Republic of China, if an employee proposes or agrees to renew his employment contract or to conclude an employment contract in any of the following circumstances, an open-ended employment contract shall be concluded, unless the employee requests the conclusion of a fixed-term employment contract:

(1) The employee has been working for the employer for a consecutive period of not less than 10 years;

(2) When his employer introduces the employment contract system or the state owned enterprise that employs him re-concludes its employment contracts as a result of restructuring, the employee has been working for the Employer for a consecutive period of not less than 10 years and is less than 10 years away from his legal retirement age; or

(3) Prior to the renewal, a fixed-term employment contract was concluded on two consecutive occasions and the employee is not characterized by any of the circumstances set forth in Article 39 and items (1) and (2) of Article 40 hereof(see the law).

If an employer fails to conclude a written employment contract with an employee within one year from the date on which it starts using the employee, the employer and the employee shall be deemed to have concluded an open-ended employment contract.