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When Must an Employer Enter into an Open-ended Employment Contract with an Employee?

An employer and employee may enter into an open-ended employment contract by agreement. If the employee proposes or agrees to renew or enter into an employment contract in any of the following circumstances, an open-ended contract shall be concluded unless the employee requests a fixed-term contract:

(1) the employee has worked continuously for the employer for at least ten years;

(2) when the employer first implements an employment-contract system or a state-owned enterprise concludes new contracts following restructuring, the employee has worked continuously for the employer for at least ten years and is less than ten years from statutory retirement age;

(3) two consecutive fixed-term contracts have been concluded, the employee does not fall within Article 39 or Article 40(1) or (2) of the Labor Contract Law, and the contract is renewed.

If the employer fails to conclude a written employment contract within one year after the employee starts work, the employer and employee are deemed to have entered into an open-ended employment contract.

Updated October 3, 2026
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