Find useful legal information for your business in China!

136.Can an employee ask the owner of a bankrupt company to compensate for his wage?

136.Can an employee ask the owner of a bankrupt company to compensate for his wage?

Answer: Whether the boss of the company should compensate, with their personal assets as unlimited liability, employees’ wages, economic compensation, and other employment entitlements (hereafter refer to employment debts or employment claim) firstly depends on the types of different employers. Compared with the insolvency distribution, the boss’s personal liability for compensation is often a moreRead more about 136.Can an employee ask the owner of a bankrupt company to compensate for his wage?[…]

137.Is the owner of an limited liability company liable for employees’ wages?

137.Is the owner of an limited liability company liable for employees’ wages?

Answer: In most circumstances, the shareholders or boss of a limited liability company do not need to bear personal liability for wages or other employment debts owed. This is because under the legal framework of a limited company, the company is only liable for the debts within the limits of the company’s assets, isolating theRead more about 137.Is the owner of an limited liability company liable for employees’ wages?[…]

104.How many ways are there for termination of employment relationships?

104.How many ways are there for termination of employment relationships?

Answer: Termination or dissolution of employment relationship may have the following seven ways: The first is termination of employment contract by mutual agreement (Article 36 of the Employment Contract Law). Normal terminations by mutual agreement are that both parties sign a clear settlement agreement. In practice, there may be situations where termination¡¯s reason is disputedRead more about 104.How many ways are there for termination of employment relationships?[…]

105.I don¡¯t want to work for my employer any more. How should I resign?

105.I don¡¯t want to work for my employer any more. How should I resign?

Answer: The Employment Contract Law stipulates that employees have the right to decide to resign, but they should comply with the requirement of advance notice stipulated by law. The employee must give three days advance notice during probation period and one month advance notice during formal contract period. The law does not stipulate the formRead more about 105.I don¡¯t want to work for my employer any more. How should I resign?[…]

106.My company received a resignation letter claiming  forced resignation. Are we liable for economic compensation?

106.My company received a resignation letter claiming forced resignation. Are we liable for economic compensation?

Answer: Both the Employment Contract Law and the judicial interpretation of the Supreme People’s Court stipulate that if an employee is forced to resign for a specific statutory reason, the employer is liable to economic compensation. Therefore, under what circumstances the employees is forced to resign is the key issue. Legally established forced resignations includeRead more about 106.My company received a resignation letter claiming forced resignation. Are we liable for economic compensation?[…]

107.Should employees be entitled to damages for their forced resignations?

107.Should employees be entitled to damages for their forced resignations?

Answer: Forced resignation may attract liabilities of economic compensation and damages for forced resignation. This damages is different from the punitive damages due to illegal termination of employment relationship. It refers to the liability employers must assume as stipulated in Article 85 of the Employment Contract Law: if an employer involves unjustified arrears or deductionsRead more about 107.Should employees be entitled to damages for their forced resignations?[…]

108.I had to resign due to the relocation of my employer. Am I entitled to economic compensation?

108.I had to resign due to the relocation of my employer. Am I entitled to economic compensation?

Answer: The Employment Contract Law stipulates that employers is obligated to provide the employee with the agreed-upon work conditions. They include agreed-upon work location because changing work location affect employee’commuting time and costs. Moreover, if such relocation constitutes a failure to provide the employee with the agreed-upon work conditions, the employee may be forced toRead more about 108.I had to resign due to the relocation of my employer. Am I entitled to economic compensation?[…]

109.My boss fired me, but now he claims I resigned. What can I do?

109.My boss fired me, but now he claims I resigned. What can I do?

Answer: The relationship between an employer and an employee often worsens before or after they end the employment. It is not uncommon that both parties accept the termination, but disagree on the cause: the employee may maintain that they were dismissed by the employer, and the employer may insist that the employee resigned. Both partiesRead more about 109.My boss fired me, but now he claims I resigned. What can I do?[…]

Under what circumstances a departed employee may need to compensate the former employer?

Under what circumstances a departed employee may need to compensate the former employer?

Answer: An employee may still liable for compensation for unlawful terminating employment relationship or violation of the agreed contractual obligations after the termination. There may be four situations: The first situation is that the employee did not resign according to the law, resulting in the loss of the employer. This situation encompasses the employee’s resignationRead more about Under what circumstances a departed employee may need to compensate the former employer?[…]

111.On the same day an employee resigned, he left his role and caused damages. Is he liable for the damages?

111.On the same day an employee resigned, he left his role and caused damages. Is he liable for the damages?

Answer: That the employee abandoned their role on the day of resignation even without conducting any necessary work handover is called urgent resignation. It may cause disruption or even losses to the employer. In contrast to restrictive damages by current employees, the liability caused by employees’ illegal termination in breach of employment contract or lawRead more about 111.On the same day an employee resigned, he left his role and caused damages. Is he liable for the damages?[…]