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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.

  • 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.

HOW TO DISMISS AN EMPLOYEE WITH POOR PERFORMANCE?

To know more, download our legal handbook related to Employment in China…

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