My friend and I set up a small-scale joint venture company. I don't think it is necessary to sign a labor contract when recruiting employees.

Q: My friend and I set up a small joint venture company. I don't think it is necessary to sign a labor contract when recruiting employees.

A: The Scout Law Online Consultation will answer your question.

If you don't sign a labor contract, you have to pay double wages. According to Article 82 of the Labor Contract Law: "If the employer fails to conclude a written labor contract with the employee for more than one month and less than one year from the date of employment, it shall pay the employee twice the monthly salary". Therefore, enterprises should pay double wages when dissolving labor relations. If not, employees can apply for labor arbitration.