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Corporate Service - China

Question

Provisions Relating to the Cancellation or Termination of Labor Contracts

Answer
As a result of this year's epidemic, many companies have laid off employees due to business conditions. And towards the end of the year, the post-Chinese New Year departures are on the horizon. What are the things to look out for, whether you are actively or passively leaving your job?

Q: How many days' notice is required if an employee who is still on probation voluntarily resigns?
A: An employee who is in the probationary period may terminate the employment contract by giving three days' notice to the employer.

Q:
How many days' notice is required for the employer to terminate a contract with a probationary employee?
A:
According to article 39 of the Labor Contract Law, if it is proved that a worker does not meet the conditions for employment during the trial period, the employer may terminate the labor contract. There is no time limit for prior notice, but the employer is required to prove that the employee does not meet the conditions for employment.

Q:
How many days' notice does the employer need to give the employee when the employment contract expires and the employer will not renew the contract?
A:
In the event that the employment contract expires and is not to be renewed, the employee need only be notified before the expiration date of the employment contract. Similarly, if the employee voluntarily does not wish to renew the contract, he or she need only raise the matter before the expiration of the contract. If there is any other agreement in the contract between the two parties, the agreement shall be followed.

Q:
If a worker has committed a serious disciplinary offence or serious dereliction of duty causing significant damage to the employer, does the employer need to give prior notice if it wants to terminate the contract?
A:
If a worker seriously violates the employer's rules and regulations or commits malpractice through serious dereliction of duty, causing significant damage to the employer, the employer may immediately terminate the employment contract.

Q:
If a worker does not enter into a written labor contract with the employer within one month from the date of employment, upon written notice from the employer, can the employer terminate the labor relationship with the worker?
A:
In such cases, the employer shall notify the worker in writing of the termination of the employment relationship and shall not be required to pay economic compensation to the worker, but shall pay the worker remuneration for the time actually worked in accordance with the law.

Q:
If the employer has not entered into a written employment contract with the worker for more than one month but less than one year from the date of employment, what should be done?
A:
In such cases, the employer shall, in accordance with the relevant regulations, pay the worker twice the monthly wage and conclude a written contract with the worker; if the worker is unwilling to conclude a written contract with the employer, the employer shall notify the worker in writing to terminate the employment relationship and pay economic compensation in accordance with the regulations.

Q:
Under what circumstances can the employer terminate an employment contract with 30 days' prior written notice to the worker?
A:
If a worker is ill or injured other than at work and is unable to perform his or her original job after the expiration of the prescribed medical treatment period, or if he or she is unable to perform work that has been assigned by the employer;
The worker is not capable of performing the job and has been trained or reassigned to the job and is still not capable of performing the job;
When the objective circumstances under which the employment contract was concluded have changed significantly, resulting in the inability to perform the employment contract, and the employer and the worker have failed to reach an agreement on changing the content of the employment contract through consultation.
If the employer has not given 30 days' notice, the worker may also be paid an additional month's salary instead.

Q:
What are the relevant regulations for economic redundancies?
A:
If there are any of the following circumstances, and there is a need to reduce the number of employees by more than 20 or by less than 20 but accounting for more than 10 per cent of the total number of employees of the enterprise, the employer may reduce the number of employees by explaining the situation to the trade union or all employees 30 days in advance and listening to the views of the trade union or the employees, and the staff reduction plan may be reported to the labor administration department.
Reorganization in accordance with the provisions of the business insolvency law;
Serious difficulties in production and operation;
If an enterprise changes production, major technological innovation or adjusts its management mode, it still needs to lay off staff after changing labor contracts;
Other cases in which the labor contract cannot be fulfilled due to a significant change in the objective economic circumstances under which it was concluded.

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