由Gregory · Sy， Grandall法定小组

v.终止和`临时解雇’

1. 在之下雇员能不预先通知被终止什么情况？

雇主也许终止雇员，不用通知的要求在以下情况：

-在试用期，如果雇员被确定是不合适的对位置;
-雇员物质破坏雇主的规则和章程;
-雇员参与造成对雇主的兴趣的严肃的失职、贪占或者腐败巨大破坏;
-雇员建立了与另一位雇主的就业关系，并且那个关系影响完成他任务和他拒绝在雇主通知以后适当地补救情况;
-雇员半新欺骗在达成劳资协议; 或
-雇员是受邢事调查支配。

2. 在之下雇员必须给什么情况结束公告？

如果它终止劳资协议在以下情况之下，雇主必须代替给30天’预先的书面通知或付款：

-雇员无法在返回尽他原始的责任或被再分配的职责，从医疗事假或与非工作相关的伤害以后;
-雇员无能并且保持无能在位置的训练或调整以后; 或
- the occurrence of a major change of objective circumstances which were relied upon when signing the labour contract, and the employee and employer are unable to agreed on modified terms of the labour contract.

3. Under what circumstances may an employee terminate the labour contract without notice?

An employee may unilaterally terminate the employment contract without requirement for notice in the following instances:

- employer fails to provide labour protections and working conditions in accordance with the labour contract;
- employer fails to pay remuneration in full and on time;
- employer fails to pay social security payments in accordance with the law;
- employer’s rules and regulations violate laws and regulations, harming the employee’s rights and interests;
- employer uses fraud, coercion or the employee’s unfavorable position to conclude the contract; or
- other situations set out in laws and regulations.  

4. In what instances is compensation required and how much?

Severance compensation is due in a number of situations, which are summarized below:

- termination by employee under situations which result in his right to terminate the contract immediately (Item 3, discussed previously);
- termination by employer under situations which require 30 days’ prior written notice (Item 2, discussed previously);
- the employee is terminated due to restructuring or difficulties in business operations; 
- the labour contract is terminated after being proposed by employer and there is mutual agreement on termination;
- a fixed-term labour contract expires (except where employee refuses to renew the contract on terms equal to or better than previously concluded);
- termination of labour contract due to revocation of employer’s business license; and
- termination of labour contract due to bankruptcy.

Employers must pay severance in the amount of one month’s salary for each year of service, with half a month’s salary for each partial year.

If the employee earns more than 3 times the average monthly wage of the locality, then the compensation will be capped at 3 times the average monthly wage, up to a maximum of 12 months.

5. Can employees be ‘laid off’?

Under the following circumstances, labour contracts may be terminated due to business difficulties:

- restructuring due to the Enterprise Bankruptcy Law;
- serious difficulties in production or operations;
- a staff reduction is necessary due to changes in production, technical innovation or adjustment of management operation style; or
- other major changes in economic circumstances relied upon at the time of conclusion of the labour contract, rendering them non-performable.

For large-scale layoffs (20 or more employees, or in smaller organizations where employee layoffs are less than 20 employees but this accounts for 10% or more of the total employees), the employer must first explain the circumstances to the trade union or all employees (where there is no trade union) 30 days in advance, and may reduce the workforce only after consideration of the opinions of the trade union or employees and reporting the restructuring plan to the labour administration. 

VI. Labour Arbitration and Dispute Resolution

1. How are labour disputes resolved in China?

Like most jurisdictions, mediation is the preferred method of dispute resolution, however, this is a voluntary process. The Labour Arbitration Law provides that mediated settlement agreements for salaries, medical fees for job-related injuries, severance and penalties may be entered into court for enforcement.

Labour dispute claims, according to the Labour Law and the Labour Arbitration Law, must first be submitted to the local labour arbitration committee located in the jurisdiction of the employer. The labour arbitration committee must then render its award within 45 days after the dispute has been accepted.
Arbitration decisions are final for employers in the following instances: salaries, medical fees for job-related injuries, severance, and penalties, where the disputed amount does not exceed an amount equal to 12 months’ local minimum wage.  

Employees and employers (with the exception of those instances set out previously) may within 15 days of the arbitration award submit the dispute to the people’s court for hearing.

2. What is the statute of limitations for bringing a labour dispute claim?

The limitation period is 1 year after the employee knew or should have known that their rights have been infringed, however, if the dispute occurs under an existing labour contract, the limitation period does not start until the labour contract has expired or has been terminated. 
  

This is the second part of the Grandall Legal Group Guide to Employment Law in China, last week we published the first part.

Gregory M. Sy is a partner / foreign counsel with Grandall Legal Group. His practice includes general business advisory for SME’s in China, particularly in the areas of international corporate structuring and transactions. Representative clients include the Consulate of the United States of America in China (Shenyang), Embassy of Brazil, various publicly listed companies (NYSE, LSE, DAX, and BSE), along with numerous other SME’s operating in a wide range of industries. Mr. Sy obtained an LL.B. from the University of Victoria, and is admitted to the New York bar. Gregory publishes extensively on a variety of China legal issues for international and local publications, and has recently acted as chief editor for Martindale’s China Law Digest. You can contact Gregory at gregsy@grandall.com.cn or learn more about the firm at www.grandall-profile.com.