The Labour Contract Law in China was passed and became effective on 1 January 2008, and its latest revision was passed and became effective on 1 July 2013. Since the law became effective, the protection for employees under China’s labour law system has much improved, and burdens for employers have correspondingly increased significantly.
When an employer decides to terminate a labour contract with its employee peacefully – avoiding a lawsuit against it through negotiations with the employee – and sign an agreement for termination, it might want to take the followings into consideration.
Boss & Young
Cause of the termination. When talking about termination of a labour contract, the Labor Contract Law gives the employer few options that can release the employer from paying the employee any economic damages or compensation.
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XIANG LAN is an attorney-at-law with Boss & Young
12th-15th Floor, 100 Bund Square, 100 South Zhongshan Road, Huangpu District, Shanghai
Contact details:
Tel: +8621 2316 9090
Fax: +8621 2316 9000
E-Mail: xianglan@boss-young.com
