China question: How do I terminate an employment contract in China?
May 10, 2013 | BY
clpstaff &clp articlesMy company is a foreign-invested enterprise, how do I ensure that when I terminate an employment contract I can avoid costly labour disputes and penalties?
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The international perspective
Disputes over dismissal are amongst the most common labour disputes in China. In order to save time and avoid costly court proceedings, it is important to understand the legal and practical approach to termination and put in place sound HR management.
Termination
The right to unilaterally terminate employment is limited under Chinese labour law. Employers may unilaterally terminate employment only with reasons and only under the limited statutory situations that are exhaustively listed in the PRC Employment Contract Law (中华人民共和国劳动合同法).