China takes aim at 'illegal' overtime culture

Chinese authorities have urged enterprises to end overtime work culture and allow employees to take more leaves, one of the latest initiatives to stimulate effective domestic demand.

Stemming from an action plan to boost consumption, the authorities will strengthen monitoring of the paid annual leave system's implementation among companies while making it clear to them that they are not allowed to extend their staff's work hours illegally, according to Li Chunlin, vice chairman at the National Development and Reform Commission.

Mainland firms are also encouraged to allow employees to take leaves during non-public holidays and schools in some cities to set up vacations in the spring and fall.

Li said during a briefing on Monday that he believes domestic consumption could have a stronger momentum with the implementation of these new initiatives.

During the rapid development of the Chinese tech industry in 2019, companies promoted – and even asked staff to work – extra long hours. The “996” working hour system described the phenomenon of starting work at 9am and clocking out at 9pm six days per week, which was earlier praised by Alibaba (9988) founder Jack Ma Yun.

In 2024, the average weekly work hours across mainland enterprises spanned 49 hours.

This year, several leading private firms have taken some measures to have their employees end work earlier. The Shenzhen-headquartered drone giant DJI, for example, has reportedly instructed human resources staff have all workers leave the office building by 9pm.

Home appliances manufacturer Midea (0300) issued an internal notice in January, forbidding meetings after work hours and denouncing ineffective overtime. Earlier this month, Midea was reported to have employees stop working at 6.20pm.

BYD (1211) was rumored to have canceled overtime pay for workers with a monthly salary of below 7,000 yuan (HK$7,515) in some cities, according to posts on social media platform Rednote.

Notably, DJI canceled some overtime benefits at the end of December 2024, a move regarded as a cost-reduction measure.

Earlier in 2021, China’s top court ruled that the “996” overtime work policy violated the law.

THEMIS QI