In China employment relationships are mainly governed by the PRC Labour Contract Law and its implementation regulations, in combination with further state-level, regional and local related rules and regulations. The legislation applies to all companies located within Mainland China, including Foreign Invested Enterprises and covers both foreign and Chinese employees.

In this publication China’s labor contract law regarding the management, mitigation and follow up of labor disputes and termination of employment relationships are discussed in detail, including the rights and obligations that apply in these situations to both employer and employees.

Labor disputes can be dealt with in different ways, varying from consultation between the parties, to mediation, arbitration and proceeding at court. In this publication you will learn about the characteristics, regulations, and obligations towards the parties of each of the steps involved in the dispute escalation trajectory.

You will learn about the legal grounds for the termination of employment relationships and develop an in-depth understanding in which instances the employee, and the employer are both allowed to unilaterally terminate the employment contact, when termination is not allowed and in which situations it is beneficiary for both parties to reach a mutual agreement.

In the publication the legal grounds for financial compensation are discussed, and you will develop insight in the calculation for severance payment under different circumstances that might apply to a case.