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Under the following circumstances an accepting entity may return the dispatched employee to the staffing firm, which may terminate its labor contract with him in accordance with the relevant provisions of the PRC Labour Contract Law.

When the dispatched employee:

• Fails to meet the requirements for employment during the probation period.
• Materially breaches the accepting entity’s rules and regulations.
• Causes substantial loss to the accepting entity due to his serious dereliction of duty or
• engagement in graft for personal gain.
• Establishes an employment relationship with another employer simultaneously which
• materially affects the completion of his task with the original employer, or he refuses to rectify the situation after being cautioned by the employer.
• Causes the employment contract with the staffing company to be invalid
  • through fraud, coercion, or exploitation of the other party’s disadvantageous position, a where party causes the other party to conclude or amend the labor contract against the latter’s true intent.
  • the labor contract absolves the employer from legal liability and denies the employee his rights; or
  • the labor contract is in violation of the mandatory provisions of laws or administrative regulations.
• Is subject to criminal liability in accordance with the law.

An accepting entity may return the dispatched employee to the staffing firm, which may terminate the labor contract under any of the following circumstances by giving the employee 30 days’ prior written notice or one month’s wages in lieu of notice:

• Where the employee is unable to resume his original work nor engage in other work
• arranged for him by the Employer after the expiration of the prescribed medical treatment period for an illness or non-work-related injury.
• Where the employee is incompetent and remains incompetent after training or adjustment of his position.