According to the law, as long as the employer is engaged in employment and forms a labor relationship with the employee, even if the employee does not sign a labor contract, the employee enjoys all the rights stipulated in the Labor Law, and the unit also undertakes all the obligations stipulated in the Labor Law.
If the employer fails to sign a labor contract, the employee may complain to the labor inspection department. Once verified, the labor administrative department may order the unit to make corrections and may impose a fine.
Where a unit deliberately delays the conclusion of a labor contract (including the failure to renew the labor contract in time after the expiration of the labor contract), resulting in the loss of wages, work-related injuries, medical care and other benefits of the workers, it shall pay 25% of the additional compensation in addition to being liable for compensation according to law. The labor administrative department may also order the employer to pay compensation and impose administrative penalties.