17

Pay wages per contract and law; put raises, loans, and bonuses in writing

UpdatedGrade CMedium benefitMoneyFreeLittle timeSome willpower

Wages must be paid on time and in full per contract and law. If wages are owed, the employee can ask a court for a payment order. Oral promises on raises, bonuses, or advances lose in a dispute if you can't prove them. Money you lend an employee isn't forced into writing by law between natural persons, but write an IOU with amount, interest, and repayment date.

Cost
No money. State wages clearly in the contract. Raises, bonuses, advances, and loans all need a signed paper—no oral promises. Don't pay staff from your personal pocket on the company's behalf. The hard part is sticking to this when acquaintances ask.
Benefit
A labor contract must specify how wages are paid and how social insurance is handled. The employer must pay wages timely and in full per the contract and state rules. Unpaid wages allow a direct application for a court payment order. An owner lending personal money to an employee is a loan contract. The Civil Code says: «A loan contract shall be in writing, except where natural persons agree otherwise.» An owner lending to an employee is exactly a loan between two natural persons—the law does not force writing. Contract content «generally includes loan type, currency, purpose, amount, interest rate, term, and repayment method.» Writing an IOU covering those items is the author's advice. Oral bonus promises without paper leave the party without evidence at a disadvantage (nationwide).
Notes
This is not about refusing to help—it is about helping through rules. Favors outside the system that become habit are hard to stop without conflict. Mixing personal loans with company books leaves bad debt on you if the company fails. Statutory parts were verified; the advice is experience, hence grade C.
Sources · 2
  1. 全国人大常委会 (2007). 劳动合同法(第十七、三十条). gov.cn/gongbao/content/2007/content_711013.htm
  2. 全国人大 (2020). 民法典(第四百六十九、六百六十八条). spp.gov.cn/spp/fl/202006/t20200602_463888.shtml

← Read the whole chapter: 12. Starting a business: don't bet the family savings

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