Chinese retail chain faces rare backlash for limiting new hires to 4-year contracts
Por Fran Lu — South China Morning Post – News feed
Advertisement Trending in China People & Culture Trending in China Chinese retail chain faces rare backlash for limiting new hires to 4-year contracts
Critics brand policy ridiculous, calling it an excuse to exploit young talent and dump them as they grow experienced, harder to control
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Fran Lu in Beijing Published: 7:19pm, 24 Sep 2026 Updated: 7:20pm, 24 Sep 2026
Retail tycoon Yu Donglai, widely known as China’s “most conscientious” boss, recently triggered public controversy with a proposal to sign only a four-year “training initiative” contract with future new hires, without renewing it.
Yu has been nationally acclaimed for the many unconventionally humanistic rules he set up for Pangdonglai, a supermarket chain he founded in central China’s Henan province in 1995.
Yu, for example, once said his 8,000 employees’ after-tax monthly salaries average 9,000 yuan (US$1,350), higher than the province’s average. The company offers 30 days of paid leave plus 10 days of paid “unhappy leave” for those feeling emotionally unwell.
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