Answer: Employment law in China tends to protect the security of employment contract of special vulnerable employees. Article 42 of the Employment Contract Law stipulates that the following types of employees must not be terminated when the employer intends to terminate employment(s) due to health incompetence, ability incompetence, major changes in objective situation of employer,Read more about 124.What types of employees are entitled to special non-termination protection in employers¡¯ layoffs?[…]

Answer: The Employment Contract Law and the Labor Law both stipulate that employer can terminate the employment contract of an employee who is under criminal measures according to law. The aforementioned phrase, “under criminal measures according to law”, includes the following situations: being sentenced to fixed-term imprisonment (including those on suspension) by the courts, underRead more about 125.My employee is sentenced to imprisonment for committing a crime. Can we terminate his employment?[…]

Answer: You should first look carefully at the factual reasons and legal or institutional basis for the employer’s dismissal. If the employer dismisses you on the grounds of “gross negligence and corruption causing major losses to employer” under Article 39 of the Employment Contract Law, it is necessary to see whether you have gross negligenceRead more about 126.My employer fired me for gross negligence and corruption. Is it legal?[…]

Answer: Article 39 of the Employment Contract Law stipulates that “if an employee establishes an employment relationship(s) with aother employer(s) simultaneously, having a serious impact on the completion of their work tasks for the current employer, or refuses to make corrections after being put forward by the current employer”, the employer may terminate the employmentRead more about 127.One of my employee is also working for another company. Can we fire him?[…]

Answer: According to the Employment Contract law, economic compensation is applicable for employers to pay the employee in the following circumstances: employees are forced to resign, employment contracts expire and dissolute, employer terminates employment on the grounds of health incompetence, ability incompetence, or major changes in objective situation, or economic redundancy. The basic calculation rulesRead more about 128.How to calculate economic compensation?[…]

Answer: In case that an employers illegally terminate an employee and the employee does not elect to claim for reinstatement, the employer is liable to pay punitive damages. The calculation method for punitive damages is twice the amount of the economic compensation computed according to “How to calculate economic compensation?” (the so-called 2N punitive damages).Read more about 129.How to calculate punitive damages?[…]

Answer: Several issues need attention in calculating economic compensation and compensation: Firstly, the number of months calculated corresponding to service years is handled based on the rule of “rounding up on four and rounding up on five,” instead of the common mathematical rule of “rounding down on four and rounding up on five.” For example,Read more about 130.What are the considerations for calculating economic compensation and punitive damages?[…]

Answer: The implementation of the Employment Contract Law on January 1, 2008 changed the calculation rules of economic compensation. This piece of legislation specifically provides for a transitional, segmented treatment rule: the length of service of employees before 2008 is treated in accordance with the law before the implementation of the Law, and the lengthRead more about 131.How to distinguish the calculation of economic compensation and punitive damages for service years before and after 2008?[…]

Answer: According to Article 40 of the Employment Contract Law, an employer must give one month’s notice in advance to terminate their employee on the grounds of the employee’s health incompetence and ability incompetence and major changes in objective situation. The employer must pay one month’ wages in lieu of notice if it fails toRead more about 132.How to calculate the payment in lieu of notice?[…]

Answer: Under Article 48 of the Employment Contract Law, if an employer unlawfully terminates an employee’s employment relationship, the employee may request to reinstate, e.g., continue performing the employment contract. Reinstatement is often very important for employees who are unlawfully terminated, as it may relate to their basic subsistence. However, there are exceptions to theRead more about 133.My employer illegally fired me. Can I request reinstatement?[…]