Wages must be paid according to contracts and laws; raises, loans, and bonuses all require written documentation

17. Wages must be paid according to contracts and laws; raises, loans, and bonuses all require written documentation

Cost: No expense is incurred. The contract clearly states the wage amount. Any raises, bonuses, advance payments, or loans must be documented with signed paperwork — no verbal promises are allowed. Employers must never pay wages out of their own pocket on behalf of the company. Even when dealing with acquaintances, this same rule must be followed.

In plain terms: Wages must be paid on time and in full, as required by contract and law. If payments are delayed, employees can petition the court for a payment order. Verbal promises regarding raises, bonuses, or advance payments are legally meaningless; without written proof, the party unable to produce documentation will suffer the consequences. Any money lent by an employer to an employee must be backed by a written loan agreement specifying the amount, interest rate, and repayment terms.

Benefit: Contractual labor agreements must explicitly outline how wages are paid and how social insurance contributions are handled. Employers are legally obligated to pay wages on schedule and in full, per both the contract and national regulations. Failure to do so allows employees to request a court-issued payment order. Loans made by employers to staff are legally treated as standard loan agreements. Unless otherwise agreed between two private individuals, all such arrangements must be documented in writing, detailing the principal amount, interest terms, repayment date, and method. Verbal promises of bonuses lack any legal standing; without written proof, the party unable to provide documentation will be at a disadvantage (nationwide).

Evidence grade: C

Sources: National People's Congress Standing Committee (2007). Labor Contract Law (Articles 17, 30). <https://www.gov.cn/gongbao/content/2007/content_711013.htm>; National People's Congress (2020). Civil Code (Articles 469, 668). <https://www.spp.gov.cn/spp/fl/202006/t20200602_463888.shtml>

Notes: This is not about refusing to help others — it is about ensuring all assistance follows established procedures. Once informal favors become habitual practice, discontinuing them inevitably leads to disputes. Mixing personal loans with company finances risks exposing the lender to financial losses if the borrower defaults. The legal provisions referenced here have been verified; however, the recommendations are based on practical experience, which justifies the C rating.