First, I recommend you read Dan’s post at the China Law Blog if you have no legal entity here but are active.
Hiring someone who will work from his apartment and have no legally recognizable employment is unwise. It is a mistake culturally and legally. Dan Harris covers it so well in his post, that I will say no more.
Secondly, if you are in China, then you should be familiar with an English translation of the Chinese Labor Law if you are not already. Following it is valuable. It will save you from foolishness, and provide you paths to succeed that have the force of law. The English translation is always a bit awkward, but it is good to be familiar.
Three readily helpful things you can do legally that can be found there are:
- Sign people to training agreements.
- Give yourself strength in Chinese law by having and correctly doing an employee handbook.
- Have legally useful non-competes and confidentiality agreements.
Let’s all follow the law in employing. It is our friend and we should respect it.