Termination

If an employer wishes to rely on the fact that an employee has been using social media during working hours as justification for termination, it will be necessary to show that the employee seriously violated labour disciplines or the rules and regulations of the employer and caused material losses to the employer as a result …

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Individual redundancy is allowed under Chinese law and is categorized as termination because of changes in “objective circumstances” …

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Early termination Where the employment contract is terminated early and notice is required, this must be provided to the employee in writing, at least 30 days in advance of the end of the employment relationship …

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Severance pay must be provided: where the employer unilaterally terminates the employment relationship for a reason which requires notice to be given to the employee; where the employer, through its own faults, causes the employee to terminate the employment relationship; where the employer has requested early termination of the relationship and the employee has agreed (termination by mutual agreement); where the employer is declared bankrupt, enters early liquidation or is ordered to close down; upon the natural expiry of the employment contract (fixed-term), unless the employee has rejected a renewal in the contract which provided for working conditions no less beneficial than the original contract; and where an employee has been made redundant …

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In light of the restrictions on unilateral early termination, mutual agreement is considered to be the most common means to terminate an employment relationship …

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It is generally accepted that an employee may resign, with or without cause, by providing the employer with 30 days’ written notice …

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A unilateral termination by an employer will be considered unlawful if the employer cannot prove that it was conducted on the basis of one of the reasons provided in China :: Early termination by the employer …

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The Labour Contract Law provides that the employment relationship may only be terminated during the probationary period in the circumstances stated under the section China :: Early termination by the employer …

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Instances where notice is required In China, an employment contract may be terminated early where: The employee is considered to be incompetent, and this could not be remedied by adjusting the role or providing further training; The objective working conditions or circumstances upon which the employment contract was concluded have substantially changed and an agreement as to amendments to the contract cannot be reached by the parties; An employee is unable to return to work following the expiry of their medical treatment leave …

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Natural expiry At the end of the first fixed-term contract the employer can choose whether or not to renew the employment relationship, but where it is not renewed the employee must receive severance pay …

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Pregnant and nursing workers Employees who are pregnant or nursing in the first year after birth must not be dismissed, unless a summary dismissal can be justified by a sufficiently serious breach of contract …

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Both the Labour Law and Labour Contract Law regulate the termination of employment contracts in China …

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