Pay wages as required, and put raises, bonuses, advances and loans in writing
Chinese employers must pay fully and on time under contract and law. Employees may seek a court payment order for arrears. Unwritten promises create evidentiary problems. A personal loan to an employee needs a written acknowledgment stating amount, interest and repayment date.
What it takes
Free. State wages clearly in the contract and keep signed records for raises, bonuses, advances and loans. Avoid oral promises and paying company payroll from your own pocket. Apply the same rules to friends.
What you may gain
Mandatory employment-contract terms include remuneration and social insurance. Employers must pay fully and punctually under the contract and national rules; workers may directly request a court payment order for unpaid wages. An owner lending personal money to an employee creates a loan contract. Such contracts require writing except where natural persons agree otherwise, and should identify amount, interest, repayment date and method. Oral bonus promises leave the party lacking proof at a disadvantage in disputes. Chinese rules apply.
Context & considerations
Helping people can still follow a formal process. Informal favors that become routine can create disputes when stopped. Mixing personal loans and company accounts can leave you personally holding bad debts when the business fails. The statutes were verified; the operational advice is experience-based, hence grade C.
Research & references
NPC Standing Committee (2007). Labor Contract Law, Articles 17 and 30. https://www.gov.cn/gongbao/content/2007/content_711013.htm; National People's Congress of China (2020). Civil Code, Articles 469 and 668. https://www.spp.gov.cn/spp/fl/202006/t20200602_463888.shtml