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How to terminate an employment relationship in China

In China, there is no concept of “at will” employment as in some other countries. While employees generally may resign upon 30 days’ prior notice to the employer (they may be restricted from resigning in certain cases), employers in China are permitted to unilaterally terminate employees only in accordance with circumstances stipulated in relevant laws and regulations. There are many foreign enterprize in major China cities such as Beijing, Shanghai, Tianjin, Qingdao, Nanjing, Wuhan, Changsha. Fortunately, we have Beijing employment lawyer, Shanghai employment lawyer to help with employment issues.

For example, an employer may terminate an employee without notice or severance during the probationary period where the employee fails to satisfy the terms of recruitment; where the employee seriously violates labor discipline or the employer’s rules or regulations, or is seriously derelict of duty, or engages in graft resulting in major harm to the employer’s interests; or where the employee is prosecuted according to law.

In most other permitted circumstances of termination (such as where an employee is incompetent and remains incompetent after training or assignment to another post), including cases of a mutual employer-employee agreement to terminate employment, 30 days’ prior notice and severance are required. Severance generally is calculated as the payment of the equivalent of one month’s total wages (including basic wages and other benefits such as bonuses) for each year of service, but severance calculations may be modified by local rules.

 

China Ani-discrimination Law

General Introduction

There is no specific anti-discrimination law in the People’s Republic of China. However certain general anti-discrimination provisions are included in various laws and regulations. This Guide gives a general overview of the anti-discrimination environment and it relates to employment matters in the PRC. Our China employment lawyer and China labor lawyer wrote such an article just intend to give you a general idea of what China anti-discrimination law is. It is not intended to be formal legal advice. There are two main source of anti-discrimination law:

China Constitution Law

The Constitution of the PRC (the “PRC Constitution”), adopted on 4 December 1982 by the Fifth National People’s Congress of the PRC, contains certain provisions relating to equal employment opportunity.
Article 33 of the PRC Constitution stipulates that all citizens are equal before the law.
Article 48 of the PRC Constitution provides that women enjoy equal rights with men in all spheres of life, political, economic, cultural and social, including family life. More specifically, it provides that the State must protect the rights and interests of women, apply the principle of equal pay for equal work and train and select cadres from among women as well.

 

China Severance Pay Agreement

A very important remind for those foreign employees: you have to hold a working visa and work permission booklet in order to get any severance pay. Check with your employers, whether they have applied for a work permission booklet for you.

Severance pay, also called separation pay, termination pay and continuation pay, is money (and benefits) provided by the employer to an employee who is laid off, fired, or resigns. On top of a specific contractual obligation, an employment policy or practice, China employers are required to provide severance pay is a default rule. Many employers, however, offer a severance pay package in exchange for the employee's agreement not to sue (release of claims against the employer).

What Does A Severance Pay Agreement Typically Require?

For a severance pay agreement to be valid there must be a bargained for exchange. Both the employer and the employee must give each other a benefit not required under the law. The employee, for example, may agree to: (1) release claims against the employer; (2) continue working for a period of time; or (3) provide a certain amount of notice before quitting in exchange for a severance pay benefit. The employer, may agree: (1) to pay a "lump sum" payment, or an additional 1 week's wage for each year the employee worked for the employer; and/or (2) to provide certain benefits such as a letter of recommendation, an educational course(s), a continuation of health benefits for a specified period of time, use of the company's office to look for a new job, etc..

 

Free China Employment Agreement Drafted By China Lawyer

The article is about a free employment contract drafted by our China lawyer. Please note that this is only for you reference. You should consult our China attorney for related China employment law and employ our service to draft an employment agreement according to y our specific circumstance.


EMPLOYMENT AGREEMENT

EMPLOYMENT AGREEMENT (this “Agreement”) dated as of [__] (the “Effective Date”), by and between HITECH COMPANY, Inc., a Delaware corporation (“HITECH”), and [__] (the “Employee”).

1.    Employment. HITECH hereby employs the Employee to serve as President and Chief Executive Officer of HITECH in accordance with the terms and provisions of this Agreement, and the Employee hereby accepts such employment with HITECH. Employee also shall serve as a member of the Board of Directors of HITECH.

2.    Term. The term of this Agreement shall commence on the Effective Date and shall continue until this Agreement is terminated as hereinafter provided.

3.    Compensation. As compensation for all services rendered by the Employee to HITECH pursuant to this Agreement, HITECH shall pay to the Employee the following amounts during the term of this Agreement:

(a)    Base Compensation. HITECH shall pay to the Employee base compensation at no less than the rate set forth on Schedule A attached hereto and herein incorporated by reference (the “Base Compensation”). The Base Compensation shall be payable pursuant to HITECH’s standard payroll practices, except as otherwise noted on Schedule A.

(b)    Incentive Bonus. In addition to the Base Compensation, the Employee shall be eligible to receive incentive bonuses from time to time at the discretion of the Board of Directors of HITECH.

 

How to find a employment lawyer in China

Workplace discrimination, wage and hour disputes and other employment issues can sometimes escalate into legal disputes. Hiring an employment lawyer to protect your interests can take some homework. Here are some tips to help you choose a China employment lawyer who will meet your needs.
When legal issues arise at work, it can be difficult to know what to do and where to turn for advice and assistance. A competent employment attorney will help you know how to proceed with your legal issue and protect your rights in court. Finding the right attorney in your community is the first step to resolving your employment issue.
 
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I am a licensed China lawyer. Most clients are foreign nationals and companies. China Lawyer Blog have associates in Beijing, Shanghai, Tianjin, Guangzhou, Suzhou, Nanjing, Qingdao, Fuzhou, Hainan, Hefei, Wuhan, Xian, Changsha, Xiamen and Hangzhou. Learn More

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China Lawyer BLog AuthorPeter Zhu, an experienced China attorney licensed to practice law for more than ten years, the author of this China Lawyer blog, welcomes any enquiry or consultation related to Chinese law.