Expiration and termination of labor contracts

As stated earlier, the employee may terminate the labor contract during the probation period by giving three days prior notice. After the probation period the employee may terminate without notice, if the employer uses violence, threats and other illegal means to force employees to work, or gives orders violating applicable rules and thereby puts their safety at risk. If workplace safety or condition is not provided, compensation or social insurance is not paid in full, the company rules violate laws or the contract becomes void, the employee may terminate the labor contract at any time upon serving notice. The employee may also terminate the labor contract upon serving 30 day notice in writing.

By employer

Coming into immediate effect, the labor contract may be terminated if: the employee is found not capable of performing during the probation period; violates rules in a significant way; commits serious dereliction of duty or practices graft; becomes criminally convicted; establishes employment with another company which materially affects the completion of tasks with the employer, or when asked, refuses to rectify the matter.

The employer may also terminate a contract by giving the employee a 30-day written prior written notice; or one month?s in lieu of notice if:

  • after the set period of medical care for an illness or work-related injury, the employee can engage neither in his original work nor in other work arranged for him by his employer
  • the employee is incompetent and remains incompetent after training or adjustment of position
  • a major change in the objective circumstances relied upon at the time the contract was written renders it unfeasible and, after consultation, the employer and employee are unable to reach agreement on amending the labor contract

Termination prohibited

If an employee suffers from work-related injuries and is under medical observation, or it can be proven that the employee has lost ability to work due to occupational hazards or diseases, termination is prohibited. To ensure the diagnosis of such injuries, an exit health check-up for those exposed to occupational hazards is mandatory. Employers should not terminate contracts during medical treatment periods, pregnancy, confinement or nursing periods. A special non-termination rule applies for employees that have worked for over 15 consecutive years for one employer and are less than five years away from retirement.
To know more, the whole issue is available (after a free subscription) on China Briefing website with others archives
For more information on China’s legal and tax issues or to ask for professional advices in related matters, please write to info@dezshira.com

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