McDonald’s, Yum! Alleged To Break Chinese Wage Laws


McDonald’s and Yum! Brands, the owner of KFC and Pizza Hut were the targets of an undercover investigation made by New Express Daily reporters.

The report pointed out several violations of labor laws:

  • Minimum wage. McDonald’s, KFC and Pizza Hut were paying part-time employees as much as 40 percent less than the local minimum wage for part-time employees.
  • Contract. The stores refused to give the contract text to some employees.
  • Part time probation. Part time probation is still in their contracts text after being outlawed for 4 years.
  • Long hours. Have part time employee working full time hours (up to 10 hours a day), thus deny them full time benefits.

A spokesman of KFC argued that their student workers are exempt from the local minimum wage law because they are neither full-time nor part time workers. Legal experts say there is no other alternative-time worker type exists.


Another report says the Pizza Hut contract states "this contract is not governed by labor law", while the labor law says it covers any paid labor between business and natural person.

The report also says the majority of McDonald’s and KFC employees can not get their contract back after they signed it. Legal experts say this is to destroy the evidence.  McDonald’s contract also includes the part time employees discipline, which is changed unilaterally.


McDonald’s has 670 branches and over 50,000 employees in China.

Yum! Brands has more than 1,500 branches and over 100,000 employees in China.

Local minimum wages and Pizza Hut Salary (RMB/hour)

Shanghai: Local minimum wage 6.5, Pizza Hut 5.8

Shijiazhuang: Local minimum wage 6.6, Pizza Hut 5.4

Shenyang: Local minimum wage 5.5, Pizza Hut 4.1

Ian: Local minimum wage 6, Pizza Hut 5.5

Shijiazhuang: Local minimum wage 6.6, Pizza Hut 5.4


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