Pedro Marco laboral Chino

Chinese Labour Framework

A simplified look at the Chinese labour framework…

Employee's One-way resolution with 30 days advanced notice time, unless the company's non-compliance obligations -such as unpaid salaries, etc. - aren’t being met or the trial period has ended.

Company's One-way resolution without advanced notice time, when the worker:

  • Does not meet the requirements during the trial period.
  • Has violated or breached the company's rules or discipline.
  • Has committed deeds or non-compliance acts damaging the company's interests.
  • Has established another labour relationship with a 3rd party affecting its job quality and performance and refuses to rectify after being warned.
  • Has been charged in a criminal procedure.

Company's One-way resolution with 30 days advanced notice time:

  • After a medical treatment termination, when the employee has been ill or in a sick-leave because of non-related work causes and cannot continue working in their current job or jobs approved by the Labor Committee.
  • When the employee cannot work even after the training period or after changing the job position.
  • When there is a significant change under the circumstances that the contract had been signed, unless both parties had negotiated suitable terms for the new circumstances.
  • Labour Unions: in cases of one-way resolutions by the company, it has an obligation to inform the labour union in order to seek their opinion.
  • Exception: occupational disease, pregnancy or maternity leave.

Compensations: The employee has the right of compensation (from 1 month salary/year worked in the company, up to 12 months, except for unlawful dismissals) in the following cases:

  • The employer breaches the salary payment in time or quantity, or the social securities are not in accordance to the law.
  • Company's One-way resolution with 30 days advanced notice time.
  • Restructuring or reduction of the workforce.
  • Contract terminated by agreement.
  • Temporary contract termination without renewal possibilities due to lack of agreements by both sides.

Compensation is not included in the event of collective lay-offs.