In the PRC, labor disputes have increased dramatically in recent years and employers are facing an uncomfortable new reality that employees know their rights and will challenge management to defend them.
Furthermore, due to the better protection of employees and the more efficient labor dispute solving mechanism, labor disputes will be characterized by an increase in collective disputes and conflicts between competing interests.
– How to resolve labor disputes in China?
Either the employer or the employee may refer a dispute to the relevant Labour Dispute Arbitration Committee within the Municipality where the company is registered for settlement. The limitation period for application for arbitration of a labor dispute is one year, which shall be calculated from the date a party comes to know or is expected to have known the infringement of its rights.
– Under which circumstances can an employer dismiss an employee?
Without notice: an employer can dismiss an employee without notice and no severance payment only in limited circumstances, such as serious violation of workplace’s rules or if the employee is convicted of a criminal offence or during the probation period if the employee is shown not to satisfy the conditions of employment.
With notice: an employer may dismiss an employee with a 30-day notice or by paying one month of salary in the following circumstances:
- If the employee is unable to assume his/her original duties or any new duties after returning from treatment for illness or injury;
- If the employee is not qualified for the position, and remains unqualified even after receiving training or being transferred to another position;
- After mutual consultation, if the employer and the employee cannot reach an agreement to modify the employment contract when the purpose for which the employee was originally hired does not exist anymore.
-> This article may also be of interest to you:
– How to dismiss an employee with poor performance?
To know more, download our legal handbook related to Employment in China…
-> This experience may be of interest to you:
Is it compulsory to sign a labor contract?
In the situation of full-time employment, the signature of a written labor contract between the employer and the employee is compulsory. The contract shall be signed before the end of... View Article
What are the special requirements for a foreign employee to be hired by an employer in China?
Foreign employees enjoy the same privileges as local employees in terms of minimum salary, working hours, standards of hygiene and rest, and leave provisions. If a foreigner is to be... View Article
What are the mandatory working conditions for employees in the PRC?
Minimum Salary: the minimum salary requirement is determined at the municipal or provincial level. For example, the updated monthly minimum salary in Shanghai, Beijing and Shenzhen in 2020 is RMB... View Article