China: Termination of employment

Original and updating author: Huimin (Laura) Wang, Squire Patton Boggs

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Summary

• Statute specifies the grounds on which an employer is permitted to dismiss an employee, either with or without notice, and the grounds on which an employee is permitted to resign without notice. (See General)
• In cases where the employer is permitted to dismiss an employee with notice, the statutory minimum notice period is 30 days. (See Notice periods)
• The employer is entitled to dismiss an employee with notice only in certain specified cases. (See Termination with notice)
• The employer is entitled to dismiss an employee summarily without notice in certain specified cases. (See Summary termination)
• An employer is permitted to make collective redundancies in certain circumstances. (See Collective redundancies)
• An employer cannot dismiss certain categories of employee with notice or as part of a collective redundancy. (See Dismissal protection)
• The employer must make a severance payment (known as "economic compensation") in many cases where employment contracts expire or are terminated. (See Severance payments)
• Employees who believe that they have been dismissed in contravention of any of the statutory rules may file a "labour dispute" with a district labour dispute arbitration commission. (See Contesting dismissals)